Petro Seeks to Lock in Gambling Tax

Colombia is again debating the future of its 19% VAT on online gambling, as President Gustavo Petro pushes to transform the measure into a permanent fiscal tool.

Originally introduced as a temporary levy on online gambling deposits, the tax later resurfaced under emergency economic measures aimed at stabilising the 2026 budget. However, the Constitutional Court of Colombia has suspended parts of the decree, questioning whether the emergency route is legally justified.

Finance Ministry Told to Formalise the Tax

Finance Minister Germán Ávila confirmed he has been instructed to incorporate the 19% VAT as a permanent provision in the 2026 national budget.

If adopted through the standard legislative process, the measure would outlive its initial expiration date at the end of 2025 and reposition online gambling as a stable revenue stream rather than a temporary fix.

The debate unfolds ahead of Colombia’s general election scheduled for May 31, 2026, adding political weight to the decision.

Court Review Creates Short-Term Uncertainty

The Constitutional Court’s intervention has provided temporary breathing space for operators by halting immediate enforcement through decree.

Two possible outcomes now stand:

  • If rejected: The government must pursue the VAT through Congress.
  • If upheld: The tax could be reinstated swiftly, leaving operators little time to adapt.

For now, regulatory certainty remains elusive.

Industry Claims Revenue Decline

Licensed operators argue the VAT has already reduced state income by pushing players toward unregulated platforms.

Industry data frequently cited shows:

  • July 2024 contributions: 43.3bn pesos
  • July 2025 contributions: 23.1bn pesos
  • Decline: 46.6%

Evert Montero Cárdenas, president of Fecoljuegos, described the VAT as “an unsustainable burden,” noting that operators have relied on bonuses to cushion the impact rather than transferring full costs to players.

Codere Signals Investment Freeze

Major market participants are reassessing strategy.

Codere has indicated it will refrain from further investment in Colombia unless policy direction changes.

Outgoing CFO Oscar Iglesias told investors that post-election leadership could determine whether the VAT remains long-term. Even if enacted permanently, he suggested future governments could reverse course if revenue targets continue to fall short.

Summary

Colombia’s proposal to make its 19% online gambling VAT permanent has reignited debate between the government and licensed operators. While the Constitutional Court reviews the emergency decree, the Finance Ministry prepares to formalise the tax in the 2026 budget. Industry figures warn of declining legal contributions and frozen investment, leaving the sector in a state of regulatory and political uncertainty.