Colombia: advance payment of taxes for online betting
A new financial crisis has hit Colombia’s online sports betting industry. The Colombian government has decided to mandate the payment of income taxes in advance. Businesses in the sector are already very split on this decision.
The Colombian Federation of Gaming Entrepreneurs (Fecoljuegos), an association that brings together leading legal operators, has publicly expressed its rejection of the measure, evaluating it as unsustainable and warning of the serious consequences for the financial stability of its members.
New tax burden hits online sports betting industry
The policy advances the State’s revenue collection by requiring online sports betting enterprises to pay income tax in advance, which means they must do it before the regular tax period ends. This clause supplements current tax liabilities. It particularly pertains to online sports betting sites that are authorised to conduct business in the nation.
The decree promoted by the administration of Colombian President Gustavo Petro did not come at an easy time for online sports betting companies. According to Fecoljuegos, the measure adds to a growing list of tax obligations that were already considered disproportionate. The association insists that the accumulation of taxes is pushing the sustainability of an industry key to the national economy and the financing of public health to its limit. “The accumulation of tax measures could bring the sector to a critical point,” the association warned in a recent statement.
An increasingly restrictive fiscal environment
Currently, legally constituted companies in the online sports betting sector are required to pay 19% VAT on player deposits, stamp duty, and a range of additional taxes. These requirements, according to business leaders, create an increasingly restrictive and uncompetitive fiscal environment compared to illegal operators, who operate without complying with the same obligations. “Each new tax significantly increases operating costs, restricts the creation of formal employment, and affects the attraction of investment,” insisted Fecoljuegos.
Risks to employment and public health
The association has emphasised that the new tax burden jeopardises the creation of formal employment within the online sports betting sector. It also warns of a possible reduction in the funds that these companies contribute to public health, as a significant portion of their operating rights is allocated to health programmes. Fecoljuegos warns that if this trend continues, many companies may be forced to close, resulting in a drastic reduction in resources allocated to public health.
Call for dialogue and the search for solutions
Given the seriousness of the situation, Fecoljuegos made an urgent call to the Executive to open a genuine space for technical dialogue and review the decision. “The aim is to find agreements that guarantee the viability of the industry, protect jobs, and ensure the stability of resources for health in Colombia. ‘It is not just about the future of one sector,” the association stresses, “but about the stability of the country’s business fabric.”
The industry has also expressed sympathy with other industries impacted by fiscal decisions that have been characterised as “improvised and insensitive.” It has also urged the government to act responsibly and ensure that public policies support legally established sectors dedicated to economic development.
This article was first published in Spanish on 16 June 2025.
