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In 2025, the Colombian-controlled online gambling market proved to be an important source for the Colombian government in order to finance its efforts to deal with the humanitarian crisis in Catatumbo. As reported, 14 Internet gambling companies, licensed by Coljuegos, have transferred about COP 1.35 trillion, or about US$367 million, to the Colombian state via the Value Added Tax levied for Internet gambling.
These resources were assigned as a response to the humanitarian and security crisis generated by disturbances in public order in the Catatumbo region, especially in the areas related to health assistance and hospital furniture.
Emergency Tax Measures and Industry Impact
The 19% IVA applicable to online games of chance was introduced by the Colombian government in February 2025 through the state of internal commotion. This is because online gaming became one of the sources of revenue used to fund peace, development, and emergency response initiatives within conflict areas.
Marco Emilio Hincapié, president of Coljuegos, highlighted the strategic role of the sector: “Today, games operated via the internet continue to be one of the pillars of our industry. Through the economic emergency decree, this segment of the industry was one of the sectors that contributed the most resources to bring peace and development to the territories.”
Consistent Monthly Revenue and Strong Year-End Performance
Coljuegos reported that the average monthly IVA revenue exceeded COP 123.1 billion (US$33.5 million) in 2025. The last four months of 2025 reported the highest revenue levels. This can be attributed to operational activity and operational stability in spite of having been subjected to another cost in the form of additional taxation.
Hincapié emphasized that the sector maintained its contribution to public welfare beyond the emergency tax. “It is important to highlight that, despite this tax burden, games of chance continued to contribute significant resources to the subsidized health system. That is why, at Coljuegos, we are working on regulations that protect and ensure the profitability of this segment”, he stated.
Consistent Monthly Revenue and Strong Year-End Performance
Apart from IVA revenues associated with emergencies, the online gaming industry contributed almost COP 361.9 billion (US$98.5 million) to Colombia’s healthcare delivery system in the form of monopoly charges in 2025. This contribution was targeted at funding health care services and healthcare infrastructure, following the traditional contribution path of the industry in financing public health.
Regulatory Adjustments for 2026
Looking ahead, Hincapié said that the Colombian government considered proposals put forward by the industry to enhance tax efficiency. In turn, Decree 1474 of 2026 ruled that the taxable base for IVA would be determined on the Gross Gaming Revenue (GGR), in line with the operators’ requests, instead of being on the entire turnover.
This would result in a more equitable taxation system and would not hamper the growth of the industry.
Outlook for the Sector
Hincapié concluded with an optimistic outlook for the year ahead: “We expect that during 2026 the sector’s contributions will continue to increase. For this reason, we will not rest in our fight against illegal operations and in promoting legal and responsible gaming as a driver of development for our country.”
The Colombian experience illustrates its potential use as a real fiscal tool when regulated and focused on supporting the healthcare system and development policies and objectives related to emergency support and funding healthcare institutions and infrastructure.
Source: Focus LATAM
