Colombia eyes permanent 19% VAT on online gambling as part of major tax reform
2026-07-22
Source: Global Gaming Insider
Colombia's government has proposed making the 19% VAT on online gambling permanent, aiming to raise COP1.7tn of a COP21.8tn total tax package by 2027. The measure requires congressional approval amid political uncertainty.
The administration of Colombian President Gustavo Petro has put forward a permanent 19% value-added tax on online gambling as part of a broader tax overhaul designed to boost state revenue ahead of the end of his term.
This fifth tax reform package targets an additional COP21.8tn ($5.3bn) in revenue by 2027, with officials estimating that the online gambling VAT alone would account for roughly COP1.7tn of that sum. The government contends that the tax would have minimal inflationary impact since gambling is not regarded as an essential household expense.
Rationale and background
Officials argue that making the VAT permanent would level the playing field between digital operators and land-based gambling establishments, correcting what they describe as unequal treatment under current rules. The proposal follows temporary tax measures enacted during the national emergency declared in early 2025, which subjected online gambling to VAT throughout 2026. Notably, the taxable base was later calculated on gross gaming revenue rather than player deposits.
The government points to continued market expansion during the temporary levy as evidence that the sector can absorb the additional fiscal burden. Colombia remains one of Latin America's largest licensed online gambling markets, having grown significantly since Coljuegos launched its licensing framework in 2017. Sports betting and online casino products have flourished, and the sector has become a steady contributor to healthcare funding through concession fees and other gambling-related taxes.
Legislative path
The proposal now moves to the Colombian Congress, where approval is far from certain. Previous attempts by the Petro administration to pass broad tax changes have faced stiff political opposition, and the current government is approaching the end of its term.
In a separate development earlier this month, Coljuegos announced the return of the Lotería de la Villa Republicana de Chiquinquirá after a 22-year hiatus. The regulator said proceeds from the September draw will support municipal healthcare services.