Colombian government presents bill to Congress that would raise online gambling tax to 19%

On September 1, the Colombian government presented a new bill to Congress that could raise around $6.4 billion for the country through changes to the tax code.

The bill is a tax reform, one of the key changes of which is the introduction of a 19% value-added tax on online bets for an indefinite period.

The government had previously introduced a 19% tax on online gambling, but it was done for 90 days in order to raise $237.8 million and prevent a security crisis, especially in the Catatumbo region. At the time, critics expressed concerns about the increased tax rate, as it could also increase the illegal market and reduce investment.

The established fees under the new reform are:

• Casino slot machines: 20 units of tax value (UVT) per month.
• Table games in casinos: 290 UVT per month.
• Slot machines in non-gambling companies: 10 UVT per month.
• Bingo: 3 UVT per vacant seat.
• Other localized games: 10 UVT per month.

For online gambling, the tax will be calculated based on the player's deposit. Payments received even through cryptocurrency are taken into account.

It is also proposed to increase the tax on a number of goods and services, including petroleum products, tobacco products, alcohol, online betting, dividends, 1% on the first sale or export of crude oil and coal, on the income and property of wealthy citizens, and others.

The reform is awaiting approval by Congress, but a similar bill was introduced back in 2024, which never saw the light of day, since it was not considered by Congress.