Colombia’s gaming industry is raising alarms over a series of tax measures that stakeholders say are pushing the sector toward collapse. The latest flashpoint is Decreto 0572, which mandates an advance payment of 2026 income tax to be collected in 2025. This follows the earlier implementation of a 19% VAT on player deposits, introduced under Decree 0175 in February 2025.
The Colombian Federation of Gambling Entrepreneurs (Fecoljuegos) has voiced strong opposition to these measures, arguing that they exacerbate an already heavy tax burden that includes exploitation rights, income tax, and other levies. Fecoljuegos warns that the cumulative effect of these taxes is making the legal gaming market unsustainable.
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According to Fecoljuegos President Evert Montero, the 19% VAT has already led to a 30% drop in gross gaming revenue, with some platforms experiencing declines of nearly 50% in key performance indicators. Montero emphasizes that these fiscal pressures are not only affecting operators but also threatening the sector’s contributions to Colombia’s healthcare system, which relies heavily on gambling taxes.
Industry experts caution that the increased tax burden may drive players toward unregulated platforms, undermining the legal market and reducing state revenues. They also highlight the lack of a transition period for implementing these taxes, which has forced operators to make rapid system changes without adequate support.
As Colombia grapples with fiscal challenges, the gaming industry calls for a balanced approach that considers the sector’s economic contributions and ensures its long-term viability. Without such measures, stakeholders fear that the legal gaming market may face irreversible damage.
