Colombia adds 19% VAT on online betting deposits in rescue bill

The Government of Colombia included a value-added tax of 19% on deposits with operators that are exclusively online in the Ley de Rescate Económico, bill 477 of 2026, presented by the Ministry of Finance and Public Credit on 29 October 2026. The Ministry estimates the measure will raise COP 2 billones (approximately $630 million) in 2027; the operators' federation Fecoljuegos requested a review of the proposal.

What the Economic Rescue Law proposes

The bill, presented by Minister Miguel Gómez Martínez and registered in the Chamber of Representatives as file 477 of 2026, amends the Tax Statute to submit games of chance and betting operated exclusively online to the general 19% VAT. The text appears in the file signed on 29 October and is currently under committee consideration in the Chamber.

Article 41 defines the taxable base for operators that are exclusively online as the deposit a player makes to fund an account and place bets; that definition includes cash, bank transfers and transfers of crypto-assets. The explanatory memorandum excludes from the definition games settled by physical draws, such as lotteries.

Fiscal estimates and the Ministry's rationale

The Ministry of Finance and Public Credit projects that the VAT on deposits will generate COP 2 billones in 2027, equivalent to approximately $630 million using the exchange reference cited in the file. For the 2028–2030 period it calculates an annual average of COP 2.3 billones, approximately $725 million per year. The memorandum adds that raising the tax on prizes — article 52 — would increase withholding on lottery, raffle and betting prizes from 20% to 30%, and that DIAN estimates this increase would contribute COP 198 000 millones (around $62 million) in 2028.

The Ministry's technical argument is twofold: first, that online activity currently falls outside the general VAT while physical venues do contribute; second, that online operating revenues grew significantly through September 2026 despite existing decree-based levies. The memorandum emphasizes that exploitation fees allocated to the health system and the VAT would coexist, and that betting demand is relatively price inelastic. The document cites increased health system contributions reported by Coljuegos as evidence.

Industry response

Fecoljuegos, the federation of operators, requested a review of the tax adjustments included in the Economic Rescue Law and is preparing a proposal that distinguishes obligations between online and land-based gaming. Evert Montero, president of Fecoljuegos, told La República that the sector "understands the need to contribute to public finances" and expects "a technical and open conversation" between the government and Congress. According to coverage by NEXT.io, Montero added that the measures could put small and medium operators at risk.

Coljuegos reported in bulletin 036, dated 23 September 2026, that contributions from online betting grew 84.24% to COP 473 023 millones (approximately $149 million) between January and August 2026 and attributed part of that increase to the World Cup.

Scope, compliance and proposed sanctions

Article 93 of the bill authorizes the Dirección de Impuestos y Aduanas Nacionales (DIAN) to order the blocking of access from Colombia to websites of operators that, inside or outside national territory, fail to implement technical control systems required by the rule. The measure would be executed by internet service providers when DIAN determines noncompliance, and is proposed as a sanction for failing to adopt or comply with technical controls linked to the tax obligation.

The drafting clarifies that the operator's responsibility subsists "even if it operates from abroad", which implies the tax and sanctions would apply to providers established outside Colombia if they serve players in the country.

Effect on the tax base and competitiveness

The levy on deposits taxes money before it is wagered; therefore, some of that money can be withdrawn without betting or re-enter circulation through prizes. That characteristic means the measured tax burden relative to operating revenues can exceed the nominal 19% on the deposit. Fecoljuegos insists that a differentiated regime for online and land-based channels is necessary because of the different cost structures between the two.

The bill converts into permanent a fiscal policy that until now had operated mainly through emergency decrees: recent taxes on online gaming were introduced by Decree 175 of 2025 and Decree 240 of 2026, linked to the emergency situation. The document argues that an ordinary statute provides greater legal stability because it does not depend on emergency powers; the legal and political dispute now moves to Congress.

Next steps and timetable

File 477 of 2026 is being processed in the Chamber of Representatives and will advance through committee according to the legislative calendar. The measure would take effect if Congress approves the Economic Rescue Law as presented; the legislative debate will be the forum where Fecoljuegos seeks to introduce its differentiated proposal for the sector.

"The sector understands the need to contribute to public finances and expected a technical and open conversation," Evert Montero, president of Fecoljuegos, told La República.

The discussion in Congress will determine whether the tax will apply to the deposit as proposed in the bill or whether an alternative regime that modifies the base or the taxable persons will be adopted.