Colombia Moves to Write 19% VAT on Online Betting Deposits Into Law

Colombia's government has put VAT on online gambling deposits into its economic rescue bill, this time as ordinary tax law rather than an emergency decree. The finance ministry expects COP 2 trillion from it in 2027, and the operators' federation wants it reviewed.

• Colombia's Ministry of Finance filed the Ley de Rescate Económico, bill 477 of 2026, on 29 October, and it would apply the general 19% VAT rate to deposits with online-only gambling operators
• Operators would be liable even when based abroad, and the tax agency could order blocks on those that breach its technical control rules
• The ministry estimates the online VAT would raise COP 2 trillion, approximately $630 million, in 2027
• The bill would also raise the tax on lottery, raffle and betting prizes from 20% to 30%, in a sector whose online betting contributions to health rose 84% in the first eight months of 2026
• Fecoljuegos, the operators' federation, has asked for the measures to be reviewed and is preparing a proposal that treats online and land-based gambling differently

Colombia's Rescue Bill Puts the Online Gambling VAT Into the Tax Code

Finance Minister Miguel Gómez Martínez filed the Ley de Rescate Económico in the lower house on 29 October, according to the Cámara de Representantes record, which lists it as bill 477 of 2026 and at committee stage. La República reported that Vice President José Manuel Restrepo filed it with the minister and described it as needed to avoid a fiscal crisis in 2027.

Article 41 would amend the tax code so that games of chance, except lotteries, are subject to VAT. For games operated exclusively online, the taxable base would be the deposit, including cash, money transfers or crypto-asset transfers, that a player makes to fund an account and bet. The general rate of 19% would apply, and the operator would be liable "así opere desde el exterior", even if it operates from abroad. The explanatory memorandum excludes games settled by physical draws, such as chance and lotteries, from the online definition.

Article 93 would let the national tax agency, the DIAN, order access from Colombia to an online operator's websites blocked, in place of closing premises, where an operator in Colombia or abroad fails to adopt or comply with technical control systems, with internet providers enforcing it. Article 52 would raise the tax on prizes from lotteries, raffles and bets from 20% to 30%.

The Ministry's Case and the Industry's Response

The ministry estimates the online VAT would raise COP 2 trillion in 2027 and an average of COP 2.3 trillion, approximately $725 million, a year from 2028 to 2030. The DIAN expects the higher prize tax to yield COP 198 billion, approximately $62 million, in 2028. The memorandum argues that online betting escapes VAT while land-based venues pay it, that the levy would sit on top of the exploitation rights that fund the health system, and that gambling demand responds relatively little to price. It adds that the tax must go together with control of unauthorised platforms.

Evert Montero, president of Fecoljuegos, told La República the sector understands the need to contribute to stable public finances and remains willing to do so, and hopes the government and Congress will allow "una conversación técnica y abierta", a technical and open conversation. According to La República, the federation is preparing a proposal setting different obligations for online and land-based gambling, given their different cost structures. NEXT.io reported that Montero said the measures could put small and medium-sized operators at risk.

The Ministry's Best Evidence Comes From a World Cup Year

The memorandum says online exploitation rights grew by more than 100% in nominal terms in the period to September 2026, despite the VAT under Decreto 175 of 2025, adopted during the Catatumbo emergency, and the consumption tax under Decreto 240 of 2026. Coljuegos, the regulator, reported that online betting contributions rose 84.24% to COP 473 billion, approximately $149 million, between January and August, and attributed the rise to the World Cup. That supports the claim that demand barely responds to price, but a tournament year is a flattering baseline. The real test is 2027, without a World Cup.

A Deposit Base Taxes Money Before It Is Played

A tax on deposits falls on money before it is staked, some of which is withdrawn unplayed or recycled through winnings, so the burden measured against operator revenue can sit well above 19%. That gap is what Fecoljuegos's separate online regime targets. Article 93 could reach offshore sites, since it applies to operators abroad, but it is framed as a tax-compliance sanction. Whether the DIAN turns it on unlicensed sites serving players in Colombia will decide whether licensed operators are paying for a level field.

Permanence Is the Real Change

Earlier online gambling levies came by decree, and on 29 January 2026 the Constitutional Court provisionally suspended the economic emergency behind one of them. The memorandum says the ordinary regime gives operators stability. An ordinary law would not depend on emergency powers, so the fight moves to Congress, where Fecoljuegos is arguing for a differentiated regime rather than none.

Colombia is trying to settle by statute a tax it has so far imposed by decree. Whether Congress accepts the deposit base or a split regime will decide how much of the online market stays licensed.