The government chose to keep the 19 percent VAT rate on online gambling. This decision affects the online gambling sector as a permanent part of the tax reform. Fecoljuegos, which is the Colombian Federation of Gambling Entrepreneurs, stated the decision is based on a misunderstanding of how stakes in online gambling really work. According to Fecoljuegos, a 19 percent VAT on deposits for online gaming is a wrong approach and does not match any real business variable.

Deposits Should Not Be Taxed Like Bank Transactions, Says Association

They declared it is like putting the same tax on deposits in the financial sector. Money that goes into the system is used again and again, but it never becomes profit or capital for a bank or financial intermediary. The association explained that players deposit money in online gambling accounts, and that money turns into digital currency, being cycled six times on average. Around 94 per cent of the money is given back to gamblers as winnings or prizes, but gross gaming revenue for the operator stays only about 6 per cent.

Fecoljuegos said taxes meant to be fair and sustainable in the sector should be charged on the gross gaming revenue, not on the deposits. The association also wrote that this tax pressure cannot be supported financially. Operators who pass this 19 percent VAT onto users get less competitive against international companies that avoid such taxes and can offer worldwide payment options or deals in cryptocurrencies. If legal gambling companies try to absorb the tax, they may not survive financially, and illegal platforms may benefit and gain more users.

Asojuegos Warns of Threat to Local Gaming Operators

The Colombian Association of Gaming Operators, called Asojuegos, said this move would hurt local operators and lower their contributions to healthcare, pushing more people towards offshore or illegal sites. Juan Carlos Restrepo, the president of Asojuegos, said to Mañanas Blu that total healthcare transfers have dropped in recent months. He pointed out that even the collected VAT itself has become less significant.

Asojuegos said it wants to work with the government to find solutions, protect sector sustainability, and ensure healthcare funding continues. Restrepo suggested one solution could be changing the tax calculation, so it does not take the player deposits as the tax base.