Colombia’s government is seeking to introduce a 19% value-added tax (VAT) on deposits made into online betting accounts as part of a wider economic reform package. The proposal also includes increasing the tax on lottery, raffle and betting prizes from 20% to 30%.
The measures form part of Bill 477/2026, known as the Economic Rescue Law, which was submitted to Congress by the Ministry of Finance on 29 October. The proposed legislation covers broader changes to the country’s tax system, including VAT, income tax and corporate rates, alongside significant reductions in public spending.
According to government estimates, the proposed tax on online gambling deposits could generate COP 2 trillion (€565m) in 2027. From 2028 to 2030, the measure is expected to raise an average of COP 2.3 trillion (€649m) annually. The higher tax on prizes could generate an additional COP 198bn (€56m) by 2028.
The proposed VAT would be charged in addition to the existing licensing fees paid by gambling operators. Those fees are already allocated to Colombia’s healthcare system. The government argues that applying VAT to online gambling would bring digital betting into line with land-based gambling venues, which already pay the tax. The bill also includes provisions for internet service providers to block offshore gambling websites.
The proposal has drawn concern from the industry.
Smaller and medium-sized operators would face the greatest pressure because they have less capacity to absorb additional costs. The measures could threaten the sustainability of businesses operating in the regulated market.
Evert Montero Cárdenas, President at Fecoljuegos
The government is pushing for the bill to pass before the end of 2026. Vice President José Manuel Restrepo warned that failure to advance the Economic Rescue Law could leave Colombia facing a default the following year.
However, the proposal remains open to debate and amendment. Fecoljuegos is preparing a counter-proposal for the Ministry of Finance and congressional economic committees. Montero Cárdenas said the industry recognises the need for additional public revenue but wants any new tax structure to reflect the economics of online gambling and allow licensed operators to compete with illegal websites.
The latest proposal follows an earlier 19% VAT on online gambling introduced by the previous government. Colombia’s Constitutional Court struck down that measure in January 2026.
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