Operators in Colombia waited nearly a year for this decision. The 19% VAT measure will end in just a few days. The Colombian Congress voted down the Financing Law yesterday. The law would have kept the 19% value-added tax on gambling forever. Last Tuesday brought defeat for the financing bill in the Senate’s Fourth Committee. Nine senators voted against, while four supported the measure. Online gambling operations would have faced a permanent 19% VAT under the law. Capital gains rate on gambling and lotteries would have jumped from 20% to 30%. Colombia’s gambling sector celebrates this victory after months of struggle.

The government introduced 19% VAT on player deposits in February this year. Civil disturbances in the Catatumbo region created expenses requiring this tax. December 31 marks the expiration date for the VAT measure. Finance Minister Germán Ávila called the vote strictly political and defeatist. He said the move disconnects from Colombia’s fiscal and social reality. Congress already approved a COP546.9 trillion budget, which equals $143.9 billion. The Colombian government now faces a massive fiscal gap without the Financial Law.

Victory Against Illegal Gambling in Colombia

Fecoljuegos warned the tax was unsustainable when implementation began. The Colombian Federation of Gambling Entrepreneurs feared licensed companies would leave. Black market operators would fill the vacuum left by legal businesses. April brought news of a 30% drop in online GGR after VAT introduction. Stake and other operators gave extra bonuses to help players. Some companies saw declines near 50% in deposits and average amounts. Fecoljuegos raised concerns about the impact on the Colombian healthcare system’s funding. Healthcare received COP990 billion from gambling taxes during 2024. The federation fought to protect both industry and public services.

Operators Plan New Strategies for Colombia

Companies spoke openly about VAT’s damage to their Colombian operations. Codere Online removed Colombia from its short-term and mid-term strategy plans. The announcement came during the company’s post-Q3 earnings call recently. CEO Aviv Sher had stated post-Q2 that Codere would pull back. Rush Street Interactive took a different view of the situation. CEO Richard Schwartz expected the tax would be scrapped eventually. Schwartz said strong operational performance in Colombia positions them for upside. Normal tax conditions will bring meaningful benefits when they resume.