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In response to a mounting humanitarian and security crisis in Colombia’s Catatumbo subregion of Norte de Santander, Colombia’s government declared a state of internal unrest on January 24, 2025. The move was due to armed clashes between ELN guerrillas and dissidents from the former FARC’s 33rd Front. The conflict pushed President Gustavo Petro to resort to emergency powers to address the escalating situation.
Relying on this order of law, the government made at least 16 decrees of state of emergency to provide relief to suffering populations and enhance the state’s presence in the area. One of them was Decree 175 of 2025 that charged a new VAT on online gambling operations conducted both domestically and from abroad.
A Conditional Support
Colombia’s Attorney General, Gregorio Eljach, has officially summoned the Constitutional Court to declare the decree constitutional—with conditions. In a 27-page document, Eljach requested that the Court declare the decree valid (exequibilidad), but on the condition that the proceeds from the tax be exclusively earmarked towards emergency response in Catatumbo.
The funds, Eljach argued, must be exclusively earmarked towards:
- Enhancing public security and the military
- Confering humanitarian aid
- Protecting citizens’ fundamental rights
- Financing relief activities geared towards a concrete purpose
Eljach prescribes that “These funds may be utilized solely to finance actions necessary to strengthen the public force, humanitarian concern, and protect the essential rights of the civilian population.”
Proportional and Constitutional
Attorney General further added that the decree is also in conformity with all formal and material requirements of law, including conformity with the constitution. To him, the tax is proportionate, does not violate fundamental rights, and applies existing mechanism of payment and collection.
Legally, the decree satisfies proportionality tests and meets Colombia’s constitutional requirements for state-of-emergency legislation. “The norm is proportional because it encompasses immediately collectible taxes, with already established mechanisms for collection,” the document stated.
During his closing statements, Eljach asserted: “Based on the analysis conducted, we conclude that Decree 175 of 2025 fulfills all the material and formal requirements. Therefore, the Attorney General’s Office humbly asks the Constitutional Court to issue the conditional constitutionality of Decree 175 of 2025.”
The Legal Way Ahead
Despite the initial 90-day internal turmoil period having expired on April 24, 2025, and President Petro refusing to extend it, certain emergency decrees—like Decree 175—were extended by another 90 days. The extensions allow the government to continue provisional legal measures aimed at stabilization and recovery in Catatumbo.
The Constitutional Court is already reviewing the decree to determine whether it should remain valid under the constitution. This review is important, as it will be a precedent for how the Colombian government may use tax instruments such as internet gambling taxes during periods of national emergency.
Why the Online Gambling Tax Matters
Colombia’s internet gambling market is one of the most rapidly growing niches in the gaming industry. It allows the government to generate substantial and rapid revenue without placing a fiscal burden on traditional economic endeavors.
Through focusing on a specific sector of high revenue potential and common regulatory systems, the government can ensure an efficient and speedy process of collection, particularly in time of emergencies. Using these funds for public security, humanitarian aid, and infrastructure is designed to mitigate the long-term impact of the crisis in Catatumbo.
Legality and Urgency
Colombia’s imposition of an emergency provisional tax on online gaming is a proof of the country’s balance between constitutional pride and exigent socio-political necessities. The Attorney General’s support for the policy on the condition of earmarkings of particular spending indicates an effort at providing accountability while allowing quick government action.
As the Constitutional Court makes its ruling, that ruling not only will be felt across relief efforts in Catatumbo today, but also set the legal precedent for future emergency budget measures in Colombia.
Source: YogoNet
