The Colombian gambling industry is raising red flags after the national government moved to suspend its fiscal rule—sparking fears of instability and new burdens on legal operators.
This week, Fecoljuegos, the leading association for regulated gambling in Colombia, voiced deep concern over the Ministry of Finance’s decision to activate a “fiscal escape clause” without a formally declared emergency. The result: Colombia lifts spending caps for the next three years, opening the door to unchecked deficits—and sending shockwaves through sectors already stretched thin.
“The suspension of the fiscal rule without proper cause damages confidence,” Fecoljuegos warned, citing potential fallout for domestic and foreign investors in the gaming space. The industry is already facing pressure after a slew of new tax measures, including value-added tax (VAT) on online gambling and advance withholding obligations.
Legal operators say they’re getting squeezed from both ends: rising operational costs from taxes, and now heightened macroeconomic uncertainty. “This isn’t just policy—this is survival,” one Bogotá-based operator told us. “When regulation stacks up without clear protections, it’s hard to stay legal.”
Tax Trap: Colombia’s Gambling Industry Feels the Squeeze with Back-to-Back Hikes
Analysts fear that additional stress could push more gamblers into the illegal market, undermining years of progress toward responsible gambling frameworks and state revenues. Fecoljuegos has called for transparent discussion with policymakers to avoid unintended damage to a sector that contributes over USD $250 million annually to public health and social funds.
