TLDR
- Decree 0240 establishes a 16% emergency levy on online gambling to finance flood damage recovery spanning eight Colombian provinces
- Tax base covers total wagering volume with prize payouts deducted, affecting domestic and foreign digital gambling operators
- Projected revenue stands at 8.6 trillion Colombian pesos (approximately $2.3 billion) designated for the 2026 fiscal year
- Industry revenues declined 30% following February 2025’s 19% VAT implementation on customer deposits
- Additional emergency measures include a 19% levy on unreported assets effective April 2026 and debt relief provisions for delinquent taxpayers
Colombia’s administration has enacted a 16% consumption levy targeting online gambling operations as part of emergency fiscal measures responding to devastating floods across eight provinces.
President Gustavo Petro’s government formalized the tax through Decree 0240. The measure encompasses digital wagering services offered by domestic operators and international gambling companies serving Colombian customers.
Projections indicate the initiative will generate 8.6 trillion Colombian pesos—equivalent to approximately $2.3 billion—earmarked for the 2026 national budget allocation.
The levy applies to gross wagering turnover from customer activity. Winnings distributed to players are subtracted before calculating the taxable base.
Government officials justified selecting the iGaming industry by pointing to its consistent revenue expansion over recent years. They emphasized that drawing funds from this sector prevents additional strain on other economic segments.
Betting Industry Voices Alarm Following Consecutive Tax Increases
This marks the second time in recent months that Colombian authorities have targeted the gambling sector for emergency revenue generation.
During February 2025, authorities implemented a temporary 19% value-added tax on betting deposits to support stabilization initiatives in the Catatumbo region. According to the Federation of Gambling Entrepreneurs, that policy triggered a 30% contraction in sector revenues.
Colombia’s Constitutional Court subsequently prevented the government from converting that temporary measure into permanent legislation. Despite this, the administration maintains its legal authority to proceed with the current emergency tax.
Industry representatives express doubt about sustainability. Consecutive taxation rounds have sparked concerns regarding whether licensed operators can remain viable under escalating fiscal demands.
The ultimate impact on Colombia’s regulated gambling marketplace remains uncertain. Operators are monitoring enforcement implementation closely.
Emergency Budget Encompasses Additional Tax Reforms
The gambling levy represents one component within a comprehensive emergency budget framework.
Commencing April 2026, authorities will apply a 19% supplementary tax to unreported assets. This provision targets individuals and organizations that have failed to disclose specific holdings to tax officials.
The budget additionally restructures taxation affecting foreign corporations and their Colombian subsidiaries. Complete specifications regarding these modifications have not yet been publicly released.
Regarding relief measures, the government is decreasing penalties and interest accruals for taxpayers carrying outstanding obligations to the National Tax and Customs Directorate (DIAN).
The presidency has characterized the complete package as an essential response to what officials describe as an extraordinary climate crisis. Flooding has inflicted extensive damage throughout impacted provinces.
President Petro’s administration contends that current circumstances demand swift fiscal intervention. Officials argue that temporary actions of this nature are essential for mobilizing recovery capital rapidly.
Given that Colombia’s Constitutional Court invalidated the government’s previous attempt at permanent betting taxation, questions persist about whether this newest levy will encounter comparable legal obstacles.
