Colombia’s Office of the Inspector General has launched a preliminary investigation into state regulator Coljuegos over alleged irregularities in the management of the Baloto lottery contract. The inquiry focuses on whether the regulator exceeded its legal authority by altering key economic and operational rules of the game, potentially reducing the resources that Baloto contributes to the national health system.
At the centre of the controversy is the economic exploitation fee — the percentage of gross revenues that the operator must transfer to the State. Under the current contract, Baloto contributes 26%, while previous regulatory benchmarks indicated that the fee should stand at or near 32%. The difference of six percentage points represents an effective 19% reduction compared with the earlier standard, raising concerns about a potential shortfall in public funds earmarked for health financing.
Investigators are also reviewing whether Coljuegos approved prize-structure modifications without the legal competence to do so. One of the most questioned changes involves the eighth prize tier of Baloto Revancha, which was originally designed to refund the full ticket price but was later reduced to a lower payout. Internal audits and technical reviews indicate that the adjustment may have resulted in a significant volume of unawarded prizes, increasing scrutiny over the justification and legality of the decision.
These measures were reportedly adopted by Coljuegos’ board during the tenure of then-president Marco Emilio Hincapié. While the regulator argues that the adjustments were necessary to maintain the game’s financial sustainability and emphasises that health transfers have continued, the Inspector General aims to determine whether there was an improper alteration of contractual obligations or an undue benefit to the concessionaire.
For now, the investigation remains in its preliminary phase. Should irregularities be confirmed, officials involved could face disciplinary action and the Baloto contract may be subject to further review.
