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Colombia: Industry body asks for tax distinction

The proposal would differentiate between online and land-based gambling and will be presented to the Ministry of Finance and Congress during the debate on the "Economic Rescue" bill.

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Fecolijuegos proposes different taxes for online and land-based gambling
Key Points
The association claims different cost structures require different taxation
The debate stems from local governments asking companies to contribute more to public resources
The discussion will also touch upon the issue of illegal operators

The Colombian Federation of Gambling Entrepreneurs (Fecoljuegos) has proposed to distinguish between digital and land-based gambling when it comes to taxation.

Discussions began when the local governments of Abelardo and Espriella asked gambling companies to contribute resources to public finances. 

The president of Fecoljuegos, Evert Montero, agreed that the industry should support state financing, but asks for taxation that is proportional to companies' ability to contribute.

Montero stated to a local outlet: "We understand the need to contribute to the stability of public finances and remain willing to do so. We also understand that a bill is an initiative to discuss and build upon."

The association, therefore, believes that tax obligations should differ, as operating conditions do. 

It argues that online and localized gambling establishments have different cost structures and therefore should be taxed accordingly.

Fecoljuegos also criticized the previous administration's approach to taxation, calling for proposed changes to be reviewed before adoption, as they may affect legal operations, investment and employment. 

Indeed, Colombia's 2025 emergency economic decree introduced a 19% tax on online gaming platform deposits. The tax was met with criticism, with Fecoljuegos calling it a fundamental technical error as it applies to player deposits rather than actual wagers or operator revenue.

The association will also meet with the Ministry of Finance and Congress' economic committees to discuss the issue of illegal gambling.

Fecoljuegos argues that tax policy must differentiate between legal operators and those who operate outside the law. 

Montero concluded: "We want to build a solution that helps the country and preserves legal activity. Protecting investment and employment also means protecting a source of resources for healthcare."

Good to know

In Colombia, games of chance operate as a state-controlled monopoly, with licensed operators paying a 15% direct levy on their income

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