Colombia Considers Gambling Tax Adjustments Amid Crisis

The Colombian government is exploring adjustments to the tax on games of chance as part of broader economic measures aimed at addressing the country’s ongoing climate emergency. Finance Minister Germán Ávila outlined the proposal during a recent Cabinet meeting.

Ávila explained that the potential changes to gambling taxes are being considered alongside the previously announced corporate wealth tax. He noted that the government is reviewing “the possibility of making an adjustment to the tax on games of chance” to expedite funding for communities affected by heavy rains, particularly in the Córdoba region. The plan would involve “modifying the structure of the tax” an approach that was also considered during a prior emergency period.

Emergency Decree Suspended by Court

The discussion over gambling taxation comes amid a significant legal development. Two weeks ago, the Corte Constitucional de Colombia temporarily suspended the government’s economic and social emergency decree while a final decision was pending.

The decree, issued by President Gustavo Petro, aimed to mobilize roughly COP 16.3 trillion to complete the 2026 national budget after Congress rejected a tax reform proposal in early December. Under Decree 1390, the government could issue measures with the force of law, including new taxes if necessary. However, the court’s provisional suspension means that rules relating to wealth, alcohol and gambling taxes will not take effect until a final ruling is delivered.

Implications for the Gambling Sector

A key element of the suspended decree was the introduction of a 19% VAT on online games of chance, applicable to both domestic and international operators and calculated on gross gaming revenue. With the court’s intervention, this VAT cannot be enforced until the constitutional review is complete.

This legal uncertainty has significant implications for Colombia’s regulated gambling market, particularly for online operators preparing for potential tax reforms. Meanwhile, authorities continue to seek alternative revenue sources to support climate-related recovery efforts.