Colombia's AsoJuegos challenges government's 19% VAT on online betting deposits

The Colombian Association of Gaming Operators (Asojuegos) has raised concerns over the government’s proposed 19% VAT on online gambling deposits, warning it could drive players and operators to illegal platforms. Published on Asojuegos’ website, the article emphasizes that the tax would reduce player returns from 93% to 71%-75%, making legal operations unsustainable. 

Colombia, a pioneer in regulated igaming since 2016, currently taxes operators 15%-17% of GGR, contributing over 420 billion pesos to health funding in 2023.

Asojuegos argues that the VAT would encourage a mass migration to unregulated platforms, significantly reducing tax revenue and health sector contributions. The association estimates the government’s COP2.1 billion VAT target as unrealistic, as it is based on inflated turnover figures. Asojuegos has offered to collaborate with the government to find alternative solutions that protect legal operators and health funding, ensuring the sector’s sustainability.

The proposed VAT could also hinder technological investments and job creation in the sector, undermining Colombia’s competitive edge in the igaming industry. Asojuegos warns that the tax could lead to legal disputes and operational challenges for existing operators, further destabilizing the market. The association remains committed to fiscal transparency and combating illegal gambling, advocating for balanced regulation that supports both the industry and public health initiatives.