The Colombian Government has proposed permanently applying a 19% value-added tax (VAT) to online gambling as part of a wider tax reform package designed to increase public revenue before President Gustavo Petro leaves office.
The proposal is included within the Government's fifth tax reform initiative, which seeks to raise COP21.8tn ($5.3bn) in 2027. Officials estimate that maintaining the VAT on online games of chance would contribute around COP1.7tn of that total while having limited effects on inflation because gambling is not considered an essential household expense.
The Government argues that permanently taxing online gambling would eliminate what it describes as unequal treatment between digital operators and land-based gambling businesses. According to the accompanying tax proposal, the measure would create greater neutrality across the sector while providing a stable source of revenue for public spending.
The proposal follows temporary tax measures introduced during the national emergency declared in early 2025. Emergency legislation subjected online gambling to VAT during 2026, with the taxable base later calculated using gross gaming revenue rather than player deposits.
The Government said the market continued to expand despite the introduction of the tax, citing growth in betting revenue as evidence that the sector could sustain the additional fiscal burden.
Colombia remains one of Latin America's largest regulated online gambling markets. Since Coljuegos launched its online licensing framework in 2017, licensed operators have expanded significantly across sports betting and online casino products.
The sector has become an increasingly important contributor to healthcare funding through concession fees and other gambling-related taxes, with policymakers continuing to balance revenue generation against maintaining a competitive regulated market.
The latest proposal will now require congressional approval. Previous attempts by Petro's administration to introduce broader tax reforms have faced significant political opposition, making the outcome uncertain as the current administration approaches the end of its term.
Earlier this month, Coljuegos announced the return of the Lotería de la Villa Republicana de Chiquinquirá after a 22-year absence. The regulator said proceeds from the September draw will support healthcare services in the municipality.
Colombia became the first regulated online gambling market in Latin America when Coljuegos launched its national licensing framework in 2017
