Growing Worry Among Confederation Regarding Colombia's Gambling Scene
The gambling industry in Colombia is facing significant challenges due to the implementation of Decree 0572, a fiscal decree that mandates an advance payment of the 2026 income tax to be collected already in 2025, in addition to a 19% Value Added Tax (VAT) imposed on player deposits introduced earlier in 2025 under Decree 0175.
The Colombian Federation of Gambling Entrepreneurs (Fecoljuegos) has strongly opposed these measures, warning that the cumulative tax burden—including exploitation rights, income tax advances, and VAT—puts the sector at risk of collapse. According to Fecoljuegos President Evert Montero, the 19% VAT alone has caused a 30% decline in gross gaming revenue, with some operators seeing drops nearing 50% in key metrics. This reduction threatens not only the operators' financial health but also the state’s revenue flow, since gambling taxes significantly fund Colombia’s healthcare system.
The tax pressure is expected to encourage players to move towards unregulated platforms, undermining the legal market and deteriorating regulatory oversight. The industry criticizes the lack of a transition period for these taxes, which forced abrupt operational changes and liquidity strains.
There have been calls for the repeal of Decree 0572 and for a responsible dialogue between the government and the productive sector to find a balanced taxation approach. Stakeholders emphasize the need to consider the sector’s economic contribution and sustainability to avoid irreversible damage to Colombia’s legal gambling market.
The unexpected modification of tax rules generates uncertainty and breaks legal security in the gambling industry, discouraging investment and formalization. The gambling industry is considered key to the economy and formal employment in Colombia by Fecoljuegos. The decision to advance tax payments was adopted without dialogue or impact analysis, increasing uncertainty for entrepreneurs and workers in the sector.
In summary, the tax burden imposed by Decree 0572 and related measures has had a significant impact on the liquidity and economic stability of the gambling industry. The advance income tax payment (2026 taxes collected in 2025) and the 19% VAT on deposits have led to a sharp reduction in gross gaming revenue, threatening the sector's sustainability. The calls for action include the repeal of the decree and constructive dialogue with the government to find a balanced taxation approach. The risk of shifting to unregulated betting platforms and the loss of state revenue are significant concerns.
These developments underscore the urgent need for a reviewed fiscal strategy that supports the gambling industry’s liquidity and long-term economic stability in Colombia. Fecoljuegos, along with other guilds grouped in Aliadas, reiterates the request for the immediate repeal of Decree 0572 and insists on the importance of maintaining a predictable regulatory environment to ensure the sustainability of the sector and formal job creation. The accelerated tax payment affects millions of workers, suppliers, and entrepreneurs who depend on the sector's stability for their livelihood.
- The Colombian gambling industry, crucial for the economy and formal employment in the country, is currently faced with a potentially damaging tax burden following the implementation of Decree 0572, which includes an advance income tax payment for 2026 in 2025 and a 19% Value Added Tax (VAT) on player deposits.
- The unexpected tax pressure has been criticized by the industry, as it has resulted in a significant decline in gross gaming revenue, threatening the sector's sustainability and the state’s revenue flow, since gambling taxes significantly fund Colombia’s healthcare system.
