The Colombian government has reinstated a tax on online gambling deposits as part of broader emergency measures addressing severe flooding in eight provinces. Under Decree 0240, the measure imposes a 16% consumption tax on wagers made through digital platforms, both from domestic and international operators providing services locally. The move is intended to contribute an additional COP8.6 trillion ($2.3 billion) to the 2026 national budget and provide emergency funding for affected communities.

Details of the Tax and Related Measures

The emergency decree follows weeks of heavy rainfall and widespread flooding, which damaged homes, roads, and public infrastructure. Authorities stated that the online gambling sector has demonstrated robust revenue growth in recent years, making it a practical source of funds to finance recovery efforts without overburdening other parts of the economy.

President Gustavo Petro approved the step as part of wider fiscal measures enacted under his emergency powers. The declaration of a national economic emergency allowed the government to quickly introduce temporary financial rules to address the immediate crisis. According to officials, the gambling tax is designed to raise money for disaster relief while remaining temporary, with broader fiscal reforms possible depending on ongoing budget needs.

The 16% levy applies to all online betting operators in Colombia and is calculated on the total amount wagered minus any prizes awarded. The decree also establishes a temporary reduction of penalties and interest for taxpayers in arrears with tax, customs, and foreign exchange obligations as of December 31, 2025. Taxpayers who settle their outstanding balances in full before April 30 can benefit from interest rates as low as 4.5% and pay only 15% of penalties.

According to Colombia’s presidency, Decree 0240 further allows the National Tax and Customs Directorate (DIAN) to conduct conciliations in contentious administrative proceedings related to tax, customs, and foreign exchange matters. Additionally, a complementary tax for regularization of omitted assets or non-existent liabilities will take effect on April 1, 2026, at a temporary rate of 19%. The decree also makes adjustments to the wealth tax, requiring foreign company branches and permanent establishments to file declarations and pay in two installments in April and June, expanding the tax to entities previously exempt.

Exemptions are in place for certain legal entities, including healthcare organizations, companies under state intervention, and public utility companies in municipalities declared under public calamity within the emergency zones.

Context and Previous Measures

Colombia’s online gambling sector has faced significant tax pressures in recent years. In February 2025, the government introduced an emergency value-added tax (VAT) on deposits at a rate of 19% in response to unrest in the Catatumbo region. The Federation of Gambling Entrepreneurs reported a 30% decline in online gaming revenue following that VAT, highlighting the financial sensitivity of the sector. Attempts to make the VAT permanent failed in December 2025, and subsequent adjustments were suspended by the Constitutional Court over constitutional concerns.

The government maintains that the reintroduction of the tax under the new emergency decree is legal, citing the need to address an exceptional disaster distinct from previous crises. The decree explicitly states, “The adoption of tax measures in a previous emergency does not prevent the national government from using them again in a subsequent exceptional situation to address a different crisis.”

Beyond the gambling tax, the emergency decree includes other fiscal measures such as a temporary wealth tax for undeclared assets, updated rules for wealth taxes, and reductions in penalties for overdue debts, aiming to improve overall tax collection and provide swift financial relief.

Casinos and operators are closely monitoring the implementation of the new levy, which is expected to contribute significantly to recovery efforts while being carefully managed to avoid undue burden on the gaming industry.