Colombia's emergency economic decree, which introduces a 19% tax on online gaming platform deposits, has triggered strong opposition from the regulated gaming sector.
The sector warns it could undermine legal operators, distort the tax base and accelerate the migration of players toward illegal betting platforms.
The Colombian Federation of Gaming and Chance Operators (Fecoljuegos) said the tax structure represents a fundamental technical error because it applies to player deposits rather than actual wagers or operator revenue. According to the industry, taxing funds before any betting activity occurs ignores how online gaming platforms operate and creates an uneven competitive environment.
Evert Montero, President of Fecoljuegos, said the measure fails to reflect the economic reality of the sector. He emphasized: "It is absurd to charge a tax before the betting action exists. It is not known how much of that deposit will be played, how many times it will be replayed or if it will ultimately be withdrawn."
The federation highlighted the concept of "rejuego," referring to player credits that remain on platforms and may be reused multiple times but do not constitute operator income. By taxing deposits upfront, the decree inflates the taxable base and places regulated operators at an immediate disadvantage compared to unlicensed platforms that do not apply similar charges or withholding taxes.
Montero said: "The player is charged 19% even before playing. That pushes the user directly to illegality, where they are not charged anything. What is being done is putting the online gaming industry on a silver platter into the hands of illegal operators."
Fecoljuegos said it has submitted technical proposals to the Ministry of Finance, the National Tax and Customs Directorate (DIAN) and the National Administrative Department of Statistics (DANE), arguing that wagers should not be equated with revenue.
As an alternative, the federation proposed calculating taxes on actual operator income after deducting prizes and bonuses paid to players, a model it says would preserve tax collection without jeopardizing formal operations.
As part of its argument, Fecoljuegos has also pointed to the sector's long-standing fiscal contribution. Games of chance operate as a state-controlled monopoly, with licensed operators paying a 15% direct levy on their income, which is earmarked for healthcare financing.
Montero added that the current framework could prompt both local and multinational operators to reconsider their presence in the country. According to Montero, at least one international company has already relocated jobs from Colombia to Argentina amid the uncertainty created by the new tax.
He stated: "This puts at risk the sustainability and future of the chance and gaming industry in Colombia."
Colombia's gaming market operates under a state monopoly model, with taxes traditionally based on operator income
