Colombia Shifts Online Gambling Tax from Player Deposits to Gross Gaming Revenue

The Colombian government has revamped its approach to taxing online gambling, moving the 19% value-added tax from player deposits to gross gaming revenue (GGR). The new policy, which came into effect on January 1, focuses on the actual revenue generated by operators rather than taxing all funds deposited by players.

The deposit-based 19% VAT was initially introduced in February 2025 as a temporary measure amid internal unrest. Throughout 2025, this tax structure faced widespread criticism for effectively levying charges on funds that were repeatedly wagered and often returned to players as winnings, rather than targeting actual revenue. Operators were vocal in their opposition, with Codere Online, a leading Spanish gambling company, being particularly critical. In November 2025, Codere Online announced plans to cease all further investment in Colombia unless the tax was abolished, citing the measure’s negative impact on the market’s financial viability. The tax forced license-holders to absorb the 19% levy while still offering customer bonuses, creating significant financial strain.

The adverse effects of the tax were evident across the industry. Licensed operators and the trade association Fecoljuegos reported a marked decline in activity, with key indicators such as GGR, total deposits, and player engagement all experiencing significant drops. Estimates suggested that overall industry revenue fell by as much as 30% in 2025.

This policy adjustment forms part of a broader emergency economic decree designed to address a fiscal shortfall resulting from the unsuccessful 2025 tax reform. The government is targeting over COP10 trillion (US$2.65 billion) in additional revenue, with the revised taxation method expected to contribute positively to the national economy. As these changes take effect, the online gambling industry anticipates a more sustainable and equitable fiscal environment.

By fLEXI tEAM