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.