TLDR
- Decree 0240 establishes a 16% emergency levy on digital wagering to finance disaster recovery efforts following floods in eight Colombian provinces
- Tax calculation applies to gross betting turnover after deducting prize payouts, affecting domestic and foreign digital gambling operators
- Colombian officials project 8.6 trillion pesos ($2.3 billion USD) in revenue contributions toward the 2026 fiscal budget
- Industry operators experienced 30% revenue decline following February 2025’s 19% VAT implementation on customer deposits
- Additional fiscal measures include 19% levy on unreported assets effective April 2026 plus debt relief programs for delinquent taxpayers
Colombia’s administration has enacted a 16% emergency consumption levy on digital wagering activities as part of crisis response measures following catastrophic flooding across eight provinces.
President Gustavo Petro’s government introduced the taxation framework via Decree 0240. The legislation specifically targets online gambling platforms operated by domestic companies and international entities serving Colombian customers.
Fiscal projections indicate the initiative will generate approximately 8.6 trillion Colombian pesos—equivalent to roughly $2.3 billion USD—designated for the 2026 national budget allocation.
The levy applies to aggregate wagering turnover processed through digital platforms. Prize distributions to winning customers are deducted before calculating the taxable base.
Government representatives justified targeting the iGaming sector by citing its substantial revenue expansion over recent years. Authorities contend this approach minimizes fiscal burden on alternative economic sectors already facing pressure.
Betting Industry Pushes Back After Repeated Tax Hits
This represents Colombia’s second major taxation initiative targeting the gambling sector within the current administration.
During February 2025, authorities implemented a temporary 19% value-added tax on customer deposits, framed as emergency funding for Catatumbo region stabilization. According to the Federation of Gambling Entrepreneurs, that taxation resulted in 30% revenue contraction across the industry.
Colombia’s Constitutional Court subsequently ruled against converting that temporary measure into permanent legislation. Nevertheless, the current administration maintains its constitutional authority to proceed with this latest taxation decree.
Industry representatives remain cautious. Sequential taxation rounds have triggered concerns regarding the viability of licensed operators continuing business operations under escalating fiscal demands.
The sustained impact on Colombia’s regulated betting marketplace remains uncertain. Operators are closely monitoring enforcement implementation and compliance requirements.
Emergency Budget Includes Broader Tax Changes
The digital wagering levy represents one component within a comprehensive emergency fiscal package.
Commencing April 2026, authorities will enforce a 19% supplementary tax on previously undisclosed assets. This provision targets both individual taxpayers and corporate entities that failed to report specific holdings to revenue authorities.
The budget framework also restructures taxation methodology for international corporations and their Colombian subsidiary operations. Complete specifications regarding these modifications await further official clarification.
Regarding taxpayer relief provisions, the government is reducing penalty assessments and accumulated interest charges for those carrying outstanding obligations with DIAN, Colombia’s National Tax and Customs Directorate.
The presidential office characterizes the complete fiscal package as an essential response to what officials describe as an extraordinary climate disaster. Flood damage has devastated infrastructure and communities throughout impacted provinces.
President Petro’s administration emphasizes the urgent nature of the crisis demands immediate budgetary intervention. Government spokespeople assert these temporary taxation measures provide necessary mechanisms for rapid disaster recovery funding mobilization.
Following the Constitutional Court’s previous rejection of permanent betting taxation, observers are monitoring whether this emergency decree will encounter similar judicial opposition.
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