Colombian Court Temporarily Halts Coljuegos' Online Gaming Advertising Rules

Colombia's highest administrative tribunal, the Council of State, has suspended several stringent advertising, sponsorship, and promotion regulations previously imposed by the national gaming regulator, Coljuegos, on online gaming operators. The court's interlocutory decision primarily cited that the regulator overstepped its legal authority, infringing upon principles of economic freedom.

The suspended measures stem from Coljuegos' 2023 Resolución No. 20231000019054. A key provision halted was a cap limiting operators' marketing expenditure to 20% of their gross gaming revenue (GGR). The court deemed these financial restrictions an undue interference with economic liberty, arguing that Coljuegos lacked explicit statutory power to implement such limits through an administrative resolution.

Key Suspended Provisions

Beyond the advertising budget cap, the ruling paused other significant parts of the regulation. These included reporting requirements mandating operators to submit annual marketing strategies and detailed quarterly financial records. The court found these obligations represented an unjustified intrusion into confidential business information without clear legal authorization.

Additionally, several sanctioning provisions were suspended. These measures had prevented the granting of concession contracts to companies found using unauthorized trademarks or associated with illegal gaming providers, alongside imposing fines and potential contract termination for repeated infringements. The court also partially suspended a clause that required concessionaires to obtain prior approval from Coljuegos before divesting shares in their businesses.

Judicial Rationale

The Council of State's decision rested on three core constitutional principles. Firstly, it affirmed that while Coljuegos holds broad powers over Colombia's state-controlled gambling monopoly, only the legislature can enact measures that significantly impact economic freedoms or the generation of monopoly revenues. Secondly, the court stressed that the establishment of offenses and penalties falls exclusively under the authority of government policymakers. Finally, it underscored the importance of protecting commercial confidentiality, recognizing advertising plans, invoices, and supplier contracts as commercially sensitive data that Coljuegos lacked a clear legal basis to demand. The judicial review into these measures was initiated by private claimants Juan Carlos Calvo Ospina and Juan Pablo Cardona González.

Remaining Regulatory Powers

Despite the suspensions, certain regulatory powers of Coljuegos remain intact and enforceable. These include the requirement for operators to clearly disclose that they are authorized entities. Coljuegos' Gerencia de Control de Operaciones Ilegales will continue to utilize existing statutory sanctioning mechanisms to combat illegal gaming providers, upholding the regulator's mandate to ensure transparency in advertising and pursue unauthorized operators under its established legal framework.

Broader Industry Landscape

The online gaming sector has become an increasingly vital contributor to public funds under President Gustavo Petro’s administration. Coljuegos reported earlier this year that since 2022, gambling operators have remitted over COP4 trillion (approximately $970 million) to the country’s healthcare system. Concurrently, online operators have navigated new tax policies, including a temporary 19% VAT on player deposits set for 2025 and a recent 16% levy on online gambling deposits designated for flood recovery and the 2026 national budget. The Council of State's current decision is interlocutory, meaning it is a temporary suspension, and a final ruling on the annulment petition is pending. Should the court ultimately annul the challenged provisions, any reintroduction of similar measures by Coljuegos would necessitate explicit legislative authorization.