VAT on iGaming in Colombia: Associations vs Attorney General’s Office
The recent intervention by the Attorney General’s Office before the Constitutional Court has put the spotlight on the need to maintain the additional taxes on the iGaming sector, which were implemented under Legislative Decree 175 of 2025. This measure, adopted during a period of internal unrest in the Catatumbo region, aims to secure resources to address a humanitarian crisis stemming from the armed conflict in the north of the country.
According to local media reports, Attorney General Gregorio Eljach has requested that the Court declare the decree conditionally constitutional, emphasising that the funds raised must be used exclusively to address the emergency in Catatumbo. According to the submitted document, “the norm complies with both formal and substantive requirements and does not violate fundamental rights, as it establishes immediate taxation and precise payment mechanisms”. This approach aims to ensure that tax collection from online gambling not only strengthens the sector’s regulation but also fulfils a concrete social function.
Destination of taxes: a priority for the emergency in Catatumbo
The most relevant aspect of the current debate on online gambling is the specific destination of the taxes collected. The Attorney General’s Office has been clear in stating that the decree is only constitutional if the resources are used solely to strengthen the security forces, provide humanitarian aid, and protect the fundamental rights of the civilian population in Catatumbo.
This position addresses the need for transparency and accountability in the use of public funds, particularly when they originate from highly regulated sectors such as online gambling. The decree, according to the Attorney General’s Office, is proportional and adequate to mitigate the effects of the crisis as long as the resources are not diverted to other purposes. This exclusive-use requirement sets an important precedent for the industry, which will need to adjust its expectations and strategies in response to the evolving regulatory framework.
State of emergency and extraordinary fiscal measures
This new tax was established in early 2025 when President Gustavo Petro declared a state of emergency in response to clashes between illegal armed groups in Catatumbo. In this context, the government issued a series of decrees to address the situation, including , which established a tax on online gambling sales.
Although the state of internal commotion ended on 24 April 2025, the Executive decided to extend the application of several decrees, including the one affecting the online gaming sector, for an additional 90 days. This extension enables the maintenance of the flow of resources destined for the emergency while also addressing regulatory uncertainty for operators, who must adapt to a changing fiscal environment and be subject to review by the Constitutional Court.
Prospects for the online gambling industry in Colombia
The Attorney General’s Office highlights the measure’s constitutionality and the need to uphold its goal, which may establish a precedent for other governments to impose temporary levies in certain circumstances.
For gambling operators, this scenario implies the need to continuously and closely monitor judicial and regulatory changes to adapt their business models to new tax and transparency requirements. Moreover, the Colombian experience could serve as a reference for other countries in the region seeking to balance the growth of the online gambling industry with the need to raise funds to address social emergencies.
The taxation of online gambling in Colombia is at a decisive stage. The Constitutional Court will have to define not only the validity of the additional taxes but also the conditions under which these resources can be used, setting the course for the sector in the coming months.
Will the eternal tax on online gambling be the same as with other temporary taxes? While the sector demands its end, the Attorney General’s Office defends it.
This article was first published in Spanish on 27 May 2025.
