TLDR
- Colombia’s Council of State confirmed a partial suspension of Coljuegos’ 2023 Advertising Resolution.
- No appeal was filed, so the suspension is now final.
- The 20% cap on advertising and marketing spending for operators no longer applies.
- Annual advertising plans and quarterly reporting requirements have been lifted.
- Coljuegos can no longer fine operators or cancel licenses under the suspended sanctions rule.
Colombia has confirmed a partial suspension of Coljuegos’ 2023 Advertising Resolution. The decision affects online gambling operators across the country.
The suspension became final after no party filed an appeal within the legal deadline. This followed a ruling from the Council of State in June.
The case was first brought by law firm Sora Lawyers more than two years ago. They argued the resolution violated several constitutional principles.
Juan Camilo Carrasco, managing partner at Sora Lawyers, shared the news on LinkedIn. He called it “a great relief for the industry.”
What the Suspension Changes
Article 6 of the resolution capped advertising and marketing spending at 20% of an operator’s income. That limit is no longer valid.
Special advertising restrictions placed on newly licensed companies during their early years have also been suspended.
Article 7 required operators to submit annual advertising plans. It also required quarterly reports on advertising contracts and invoices.
Those reporting requirements are no longer in effect following the ruling.
Article 9 allowed Coljuegos to refuse to renew a company’s concession. It also let the regulator fine operators 1.5% of gross income or end contracts early.
These sanctions can no longer be applied under the suspended rule.
Article 10 required operators to get approval from Coljuegos before selling shares to a concessionaire. That requirement has also been canceled.
The Legal Reasoning
Carrasco pointed to several constitutional principles behind the ruling. One centers on economic freedom under Article 333 of the Constitution.
The ruling states that a regulator cannot set a quantitative limit on a lawful business activity. That kind of decision belongs to lawmakers, not regulators.
Another principle involves the state’s power to punish. The ruling says this power cannot be used to create sanctioning rules through administrative resolutions alone.
A third principle protects commercial information. The ruling notes limits on the state’s ability to demand sensitive business data from private companies.
The underlying case is still ongoing. The suspension of these specific articles, however, is now considered final since no appeal was submitted.
