The government is considering increasing the tax rate for online gambling winnings
Colombia’s current online gambling tax standards are set to be examined as the Colombian Senate continues to revamp the country’s public welfare and healthcare programs. The discussions will start on Friday, February 16, and will be led by Senator Antonio Correa of Partido de la Union.
Colombia’s Gambling Act (2001) was redrafted in 2016, endorsing new laws to control online gambling services. The country became the first in South America to establish a taxed and regulated online gambling authority in 2017 that’s also available to foreign companies.
Lawmakers in the upper house will examine the existing online gambling tax framework, which currently charges operators a 15% GGR tax rate on licensed operators that sustain an RTP of 83% of total bets. Companies that report an RTP above 83% will pay a 17% GGR rate.
The restructuring of Colombia’s public welfare and healthcare systems is recognized as the top directive of President Gustavo Petro. Since he took office in 2023, Petro has had several public disagreements with government agencies and senior officials, including the head of Coljuegos, the Colombian federal gambling authority.
The President’s office was blamed for ignoring congressional procedures to endorse its comprehensive reforms for welfare and healthcare while allegedly disregarding the demands of other public services.
This led to the resignation of then-Coljuegos President Roger Carrillo Ocampo, with Marco Emilio Hincapié Ramírez later assuming the role. Coljuegos’ yearly financial report showed tax revenue of COL $750 billion ($177.6 million) through October 2023, which benefits public health programs as the agency’s principal social mandate.
The Senate has defined 2024 as a crucial year in which the government must solve Colombia’s continued public health and welfare problem by forming a new strategy and fixing its finances.
