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The Colombian gaming regulator, Coljuegos, has made a bold step in strengthening the regulation of online gaming bonuses. The regulator has published a draft resolution for public consultation with the aim of clarifying how operators offer bonuses to players after the implementation of Value Added Tax (VAT) on online gaming transactions, from February 22, 2025.
Background: The Impact of VAT on Online Gaming
Since VAT on Colombian online gaming was introduced, Coljuegos has witnessed a dramatic shift in operator trends. According to the regulator, the operators began reimbursing players for the cost of VAT through bonuses, and bonus payments increased significantly. Before VAT was imposed, bonuses made up a mere 0.3% of overall bets, but this shot up to 3.4% following VAT imposition.
This growth, much as it is beneficial to the players in the short term, has created financial distortions within the regulated market. The regulator notes that over-reliance on bonuses has affected Gross Gaming Revenue (GGR), the building block used in calculating exploitation rights, an essential source of public revenue. As a result, Coljuegos recorded a negative deviation of contributions expected from the health sector in 2025.
The Need for Regulation
Coljuegos has expressed concern that the uncontrolled granting of bonuses undermines the financial soundness of the national gaming system, particularly the public health funds reliant on gambling returns. The draft resolution seeks to impose proportionate control and limits to restore balance between incentives for operators and the public interests.
The regulator clarified that, if left unregulated, bonus-linked remuneration would lead to less transparency in taxable revenue calculation and lead to market imbalance between compliant and aggressive operators.
Proposed Steps in the Draft Resolution
The proposed framework sets three essential limits on bonus utilization, depending on whether VAT is subject to or not:
- For VAT-subject operations: The total sum of bonuses paid in exchange for game play as credits cannot amount to more than 1.6% of the platform’s gross revenue (total bets) for the same operational month.
- For VAT-exempt operations: The overall sum of bonuses an operator may pay in a calendar month should not be greater than the average monthly exploitation rights paid over the previous 12 months, including any fixed exploitation fee.
- For new operators with VAT-exempt agreements: During the first 12 months of operations, the total bonus limit will be equivalent to one-twelfth (1/12) of the permanent exploitation rights available for the first year of operations. From the 13th month onwards, the general rule of VAT-exempt operations will apply.
Public Consultation and Next Steps
Coljuegos has opened the public comment period for the draft resolution up to November 4, 2025. Operators, industry participants, and the public are invited to review the proposal on the official website of Coljuegos and leave comments.
By public engagement, Coljuegos demonstrates commitment to co-regulation, where economic integrity and principles of fair gaming guide the regulation of Colombia’s iGaming industry.
If passed, the plan will be employed to stabilize revenue streams, enhance taxation transparency, and protect the public health system dependent on gaming-generated contributions.
A Step Toward Sustainable Market Responsibility
The move is consistent with a broader trend in Latin America toward tighter bonus and promotional regulation in online gaming. Colombia, often looked upon as a regional trendsetter in regulated iGaming, continues to balance innovation and consumer appeal on one hand against fiscal responsibility and transparency on the other.
Coljuegos’s action underscores the regulator’s aim: to ensure online gaming growth remains in line with social welfare goals, juridical requirements, and a long-term viable future for operators and the Colombian nation.
Source: YogoNet
