Key Points
- The Council of State in Colombia has finalized a partial suspension of advertising regulations from Coljuegos’ 2023 resolution.
- The suspension stands permanently after the deadline for appeals passed without any challenges.
- Operators are no longer bound by the 20% ceiling on advertising and marketing expenditures.
- Mandatory annual planning and quarterly disclosure obligations for advertising activities have been eliminated.
- The regulator has lost authority to impose financial penalties or revoke licenses under the now-suspended provisions.
The Colombian gaming sector has received confirmation that certain advertising restrictions imposed by Coljuegos in 2023 will remain suspended indefinitely. The development carries significant implications for licensed online gambling operations throughout the nation.
The regulatory provisions were effectively nullified when the window for filing legal challenges closed without any submissions. This outcome solidifies a decision initially handed down by the Council of State last June.
The legal challenge originated over two years ago when Sora Lawyers initiated proceedings against the advertising resolution. The firm contended that multiple provisions conflicted with fundamental constitutional protections.
Juan Camilo Carrasco, who serves as managing partner at Sora Lawyers, announced the outcome through his LinkedIn profile. He characterized the development as “a great relief for the industry.”
Regulatory Changes Now in Effect
The resolution’s Article 6 previously established that operators could not allocate more than 20% of their revenue toward advertising and marketing initiatives. This threshold no longer has legal force.
Additional constraints that targeted recently authorized operators during their initial operational period have also been eliminated.
Article 7 mandated that companies provide Coljuegos with yearly advertising strategies. The provision further required detailed quarterly submissions documenting advertising agreements and expenditures.
These documentation mandates have been removed as a result of the judicial determination.
Article 9 granted Coljuegos the authority to deny license renewals for non-compliant operators. The provision additionally empowered the agency to levy fines equivalent to 1.5% of gross revenues or terminate operating agreements prematurely.
These enforcement mechanisms are no longer available to the regulator under the suspended provisions.
Article 10 stipulated that operators needed regulatory authorization before transferring ownership shares to concession holders. This prerequisite has been struck down as well.
Constitutional Foundations of the Decision
Carrasco referenced multiple constitutional doctrines that informed the court’s analysis. A primary consideration involves economic liberty as enshrined in Constitutional Article 333.
The judicial reasoning emphasizes that regulatory bodies lack authority to impose numerical restrictions on legitimate commercial activities. Such determinations fall within the legislative domain rather than regulatory purview.
Another fundamental principle concerns the state’s sanctioning authority. The court determined that punitive regulatory frameworks cannot be established through administrative resolutions exclusively.
A third consideration addresses the protection of proprietary business information. The ruling recognizes boundaries on governmental demands for confidential corporate data from private enterprises.
While the broader legal matter continues through the judicial system, the suspension of these particular articles has achieved finality due to the absence of appellate filings.
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