Colombia Introduces 16% Consumption Tax on Online Gambling for 2026

Quick Summary

• Colombia will enforce a 16% consumption tax on online gambling in 2026
• The tax applies to all games of chance conducted through digital platforms
• The change is enacted via Decree 0240, updating Article 512-1 of Colombia’s Tax Statute
• The move marks a major policy shift in Latin America’s oldest regulated online market

What Happened

The government of Colombia has issued Decree 0240 of 2026, announcing the introduction of a 16% national consumption tax on online gambling activities. The new levy targets all games of chance delivered exclusively via digital platforms. Set for implementation in 2026, the policy is formalised by amending Article 512-1 of the country's Tax Statute. The measure was outlined as a priority by the administration of President Gustavo Petro, reflecting ongoing fiscal reforms across several sectors.

Operators, both domestic and international, who are licensed to offer online gambling to Colombian residents will now face a significantly increased tax burden on gross gaming revenue derived from local players. Prior to this decree, Colombia’s established regulatory model allowed for variable tax rates, including a 15% gaming tax on gross revenue, along with annual licence fees and contributions to health and sports funds.

Why It Matters

Introducing a 16% consumption tax on online gambling marks a pivotal moment for the Colombian iGaming sector. Colombia has long been regarded as a regulatory trailblazer in Latin America, being the first country in the region to implement a fully legal and monitored online gambling framework in 2016. The new tax does not merely represent a fiscal change; it introduces critical operational and commercial impacts for the sector at a time when market competition and compliance costs are already on the rise.

For licensed operators, the change means a direct increase in marginal costs. Depending on how—and whether—the new consumption tax overlaps with existing levies, effective tax rates on GGR could climb well above the current thresholds. This adjustment may squeeze profit margins, particularly for smaller local brands and new market entrants less able to absorb higher costs.

Meanwhile, the move sends a strong signal to Colombia’s neighbours and the broader Latin American region. Several other countries, including Brazil and Peru, are actively developing their own online gambling regulations. Colombia’s decision to escalate tax pressure could be interpreted as a template—or a cautionary tale—for regulators seeking to balance public revenues against the need to foster a stable, competitive market that can disincentivise illegal operators.

Importantly, implementation of the new tax aligns with continental trends. Latin American jurisdictions are increasingly viewing iGaming as a significant source of public income, particularly post-pandemic, as governments seek new avenues for budget growth. However, the success of these models depends on calibrating tax levels to ensure markets remain attractive for compliance and investment.

Industry Context

Colombia’s pioneering online gambling framework has consistently attracted top-tier international operators due to its regulatory clarity and relatively moderate tax regime. As of 2024, more than 20 licensed operators offer sports betting, casino games, and other digital gambling products to Colombian consumers. Recent years have seen vigorous market growth, with gross gaming revenue for digital gambling surpassing COP 638 billion (approximately USD 165 million) in 2023, according to Coljuegos, the Colombian gambling regulator.

Globally, the trend towards consumption-based taxation—where taxes are applied on local GGR rather than operator profits—has been seen in markets such as the United Kingdom and Australia. Proponents argue that such models ensure offshore, as well as domestic, operators pay their share for serving local customers. Critics, however, point to potential downsides: overly aggressive taxation can drive operators out of the regulated sector and stimulate growth in the unlicensed grey market, thereby undermining consumer protections and government revenue alike.

Regulatory Background

Colombia’s regulated online gambling sector originated in 2016 with Law 1753 and was further structured under Decree 414 of 2011 and subsequent resolutions. Coljuegos, the national regulator, oversees the licensing process, technical standards, and ongoing compliance for all legal operators.

The market has been applauded internationally for its transparency, efficiency, and willingness to adapt. The government’s new tax policy aligns with the administration’s goal of maximising fiscal receipts without closing the doors to investment. Analysts, however, caution that if the new tax coexists with existing fees or levies, overall operator taxation rates could approach or exceed 30% of GGR, depending on the final regulatory text and secondary legislation.

What Happens Next

Licensed operators and industry stakeholders are expected to scrutinise the full impact of Decree 0240 over the course of 2026 as the new tax regime comes into force. Regulatory authorities may need to clarify how the new 16% levy interacts with existing gaming taxes and whether transitional provisions will apply. Coljuegos is likely to issue further guidance ahead of the effective date, and market entrants will adjust business models accordingly to maintain compliance and operational viability.

Sources

• Yogonet - Online Gaming

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