The new rules of the gambling sector in the country would generate a strong impact on the annual finances of the territories.
The story goes back to April this year, when Congress approved the National Development Plan (PND) with a change in the online and real-time operating conditions of the localized games that operate in Colombia.
These include, above all, bingos, virtual sports and racing bets, and electronic slot machines, whose income from exploitation rights and taxes will finance the health of citizens.
However, with the adjustment included in the PND, the collection for this type of games could fall by up to 50%, according to estimates made by Coljuegos, in a normative impact analysis.
The entity found that “the scenario in which the highest level is generated in the affectation of collection in localized games could be in a range between 44% and 50% per year, going from $ 345,000 million to a value that could range between $ 195,000 million and $ 172,000 million, ”details the Ministry of Finance, in a draft decree, cited by the Coljuegos study.
In white silver, this would imply an annual cut of between $ 150,000 million and $ 173,000 million, although it depends on various assumptions, such as maintaining the average number of machines and their level of sales and maintaining the current outlook.
These aspects, according to Evert Montero, president of Fecoljuegos, contain the crux of the matter. The union does not share the position that the fall in revenue would be almost half. "We estimate that if it falls, it would be around 20% (about $ 70,000 million), but there are many alternative measures that could be taken so that it does not fall so much," he noted.
He added that “this measure will allow a large part of the sector to be formalized, which does not have the chance that its business will prosper due to the high tax burden and, in addition, will allow the business to be energized because there will be an extension of many contracts, that is, part of the machine park will be renewed and other games will be made viable ”.
The change in the rules of the game is to set aside the presumptive income scheme that is charged to the gambling sector, which must pay even if the machines do not generate sales. According to the union manager, “this is the only business that is charged taxes for not selling, but if it sells more than the established limit, differential rates are applied, which exceeds the general value. This implies that 70% of the machines in the country, which are not below the ceiling, should be subsidized by the ones that sell the most”.
The punctual change of the PDN implies that, now, operators will pay exclusively for operating rights 12% on gross revenues, less premiums paid, as long as they meet minimum connectivity and reliability, which would have to define Coljuegos, and for which he would have until mid-2020.
This, considering that the standard that is being drafted today would take effect on January 1, 2020 and gives the entity six months to set the conditions for all localized games that operate in the country.
In the end, this initiative seeks to “broaden the base of elements (of the sector), modernize the machine park, combat illegal operation and promote the professionalization of the gambling industry,” according to the Minhacienda decree project.
“This is the only chance that the industry will not die, because in Colombia the number of machines and contracts has been falling, and contributions have been reduced. Although the collection is reduced by this lower rate, the figures can be netted, considering that the lower burden will increase investments, and the collection, through formalization and regularization” said Montero.
The measure aims to curb a black market that moves $ 1.5 billion every year, if online and face-to-face games are included, according to Fedesarrollo estimates. For the study center, the closest calculation shows that in the country “there would be 49,036 machines in the second market for 2017”, which are the ones that move the illicit monies, for a value close to half a billion pesos each year.
*All currency facts are given in Colombian pesos ( COP )
