The approval of Decree 0175 means a new fixed charge on gross gaming revenue.

Colombia.- The government has signed off on a new fixed tax rate for licensed online gambling. The tax rate has been fixed at 19 per cent of gross gaming revenue (GGR), replacing the existing tiered 15 to 17 per cent on GGR, which varies according to whether operators maintain a return-to-player (RTP) rate of above 83 per cent.

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 per cent, as was stamp duty on share and securities transactions over COL$300 million (€72,000).

President Gustavo Petro last year proposed the introduction of a 19 per cent value-added tax (VAT) on sales via digital platforms, including online gambling, as he sought to find more funds to cover welfare programs. That proposal was rejected by the Treasury due to the difficulty of enforcement.

In 2017, Colombia became the first country in South America to launch regulated online gambling, and tax revenues go directly to national health programmes. Petro has been keen to get more from the gambling sector, but the trade body Asojuegos has warned that increased taxes will help the black market since licensed operators will have to reduce their return-to-player threshold below the 78 per cent target.

New responsible gambling practices

In December, the Colombian gambling regulator, Coljuegos introduced a new resolution intended to reduce harmful gambling. Resolution 22654 will require operators to step up player monitoring to better detect compulsive gambling.

The resolution also intends to ensure that gamblers have access to tools to help them identify risky behaviour and to advise on maintaining control during gambling. Operators will be asked to conduct campaigns to raise awareness and ensure that self-exclusion is available. Operators will need to submit action plans to Coljuegos, which the regulator will review. The regulator will also audit compliance indicators and results.