TLDR
- Colombia introduced a 16% tax on online bets through Decree 0240 to fund recovery from flooding across eight provinces
- The tax applies to total bet volume minus prizes and targets both local and international digital betting platforms
- The government expects to raise 8.6 trillion Colombian pesos ($2.3 billion) for the 2026 national budget
- The betting industry previously saw a 30% revenue drop after a 19% VAT was imposed on deposits in February 2025
- The emergency budget also includes a 19% tax on undeclared assets starting April 2026 and relief for taxpayers with outstanding debts
The Colombian government has rolled out a 16% consumption tax on online bets as part of emergency budget measures tied to severe flooding in eight provinces.
The tax was introduced through Decree 0240 under President Gustavo Petro’s administration. It targets digital betting platforms run by both local and international operators.
The government expects the measure to bring in 8.6 trillion Colombian pesos, roughly $2.3 billion, to support the national budget in 2026.
The tax is calculated on the total volume of bets placed by the public. Prizes paid out to bettors are excluded from the taxable amount.
Officials said they chose the iGaming sector because of its strong revenue growth in recent years. They also said taxing this industry avoids putting extra pressure on other parts of the economy.
Betting Industry Pushes Back After Repeated Tax Hits
This is not the first time Colombia’s government has turned to the betting sector for emergency funds.
In February 2025, a temporary 19% value-added tax was placed on deposits as part of efforts to stabilize the Catatumbo region. The Federation of Gambling Entrepreneurs said that move caused a 30% drop in industry revenue.
Colombia’s Constitutional Court later blocked the government from making that tax permanent. But the administration says it has legal grounds for this latest measure.
Industry groups remain skeptical. Repeated rounds of taxation have raised concerns about whether regulated operators can continue to function under this kind of fiscal pressure.
The long-term effects on the regulated betting market are still unclear. Operators are watching closely to see how enforcement plays out.
Emergency Budget Includes Broader Tax Changes
The betting tax is just one part of a wider emergency budget package.
Starting in April 2026, the government will impose a 19% complementary tax on undeclared assets. This targets individuals and entities that have not reported certain holdings to tax authorities.
The budget also modifies how foreign companies and their subsidiaries operating in Colombia are taxed. Details on the exact changes have not been fully outlined yet.
On the relief side, the government is reducing fines and interest charges for taxpayers who owe money to the National Tax and Customs Directorate, known as DIAN.
The presidency has framed the entire package as a necessary response to what it calls an unprecedented climate emergency. The flooding has caused widespread damage across the affected provinces.
President Petro’s administration argues that the situation calls for immediate fiscal action. The government says temporary measures like this are needed to raise recovery funds quickly.
Colombia’s Constitutional Court blocked the government’s last attempt to make a betting tax permanent, and it remains to be seen whether this new tax will face similar legal challenges.
