The government has approved a new flat tax rate for licensed online gambling. The tax rate has been set at 19 percent of gross gaming revenue (GGR), replacing the existing scale of 15 to 17 percent of GGR, which varies depending on whether operators maintain a return to player (RTP) rate above 83 percent.
The change was introduced in Decree 0175, which also introduced changes for the financial services and energy sectors. The tax on coal and gas sales was set at 1 percent, as was the stamp duty on stock and securities transactions over C$300 million (€72,000).
President Gustavo Petro last year proposed a 19 percent value-added tax (VAT) on sales through digital platforms, including online gambling, as he sought to find more funds to cover social security programs. The proposal was rejected by the Treasury due to the complexity of its implementation.
In 2017, Colombia became the first country in South America to launch regulated online gambling, with tax revenues going directly to national health programs. Petro is keen to get more from the gambling sector, but trade body Asojuegos has warned that tax increases will help the black market by forcing licensed operators to lower their player return thresholds below the 78 percent target.
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