According to iGamingBusiness, Colombia’s online gaming revenue has dropped by 30% since the introduction of a 19% VAT on online deposits in February 2025.
The Value Added Tax, which applies to players’ betting deposits, has reduced players’ available funds.
Impact on the gambling industry
Some operators, like Stake, have attempted to counteract the effects of VAT by offering 19% VAT bonuses to players. However, Fecoljuegos has warned that this strategy is not sustainable in the long term.
Fecoljuegos chief Evert Montero has pointed out that the increased tax burden could severely strain operators’ financial capacity, affecting their ability to maintain formal operations, including their contributions to Colombia’s healthcare system.
Player behavior and increased risks
Before the VAT was introduced, Fecoljuegos estimated that the average Colombian gambler spent between COP 150,000 and COP 250,000 monthly. The VAT’s implementation has led to a 50% drop in key metrics for some platforms, including deposit amounts.
This drastic shift forces operators to implement loyalty strategies, but the tax has already changed user behavior and gambling patterns.
Concerns over illegal gambling
Fecoljuegos also expressed concerns that the VAT has made legal gambling more expensive, potentially driving players to illegal gambling sites. The trade body believes this could further harm the regulated sector, which is essential for Colombia’s healthcare system, benefiting from COP 990 billion in taxes from the gambling industry.
Montero has called for more transparent discussions on future tax policies, stressing the importance of respecting sectors that comply with regulations.
