iGaming in Colombia: Opportunities within the Law

There is no limit to the number of concession contracts granted to brick-and-mortar gambling operations. Under the provisions of the General Gambling Act, each concession contract awarded to a third-party operator has a validity of three to five years. Colombia has had a hard time getting rid of illegal gambling, especially those from unauthorised online operators. However, with time, Coljuegos has been able to block the illegal websites and also penalise operators who don’t have any authorization. The move to block hundreds of such illegal sites in 2018 was one major step in the right direction, as it aimed at upholding the law, let alone safeguarding the legal market.

Colombians who gamble with locally authorized operators can also take a break from gaming. Remote gaming operators must offer a self-exclusion feature and prompt customers to set daily, weekly, and monthly deposit limits during registration. Colombian law strictly prohibits providing gambling services to underage individuals or to people with mental health disorders. Coljuegos works with its licensees to address problem gambling among local consumers. Fixed fees for online operators are set at 811 times the LMMW for the respective year of operation, plus a 1% charge on their royalties to cover the regulator’s administrative expenses. At iGamingToday, we are dedicated to bringing you the latest and most relevant news from the world of online gaming.

• PokerStars has always tried to make its users whole, and it sometimes even picks up the debris left behind by its competitors, like it did when it bailed out players of the busto poker site PKR.
• In addition, Coljuegos closely monitors gaming operations to ensure fairness and player safety.
• Secondly, offshore gaming operators had no physical presence in Colombia and operated under the laws of their own jurisdictions.

The conditions are stated with detail in Agreement 14 of 2013 and Agreement 6 of 2015. No applications have been received for a licence to operate these games; however, under a different modality and conditions, they may be offered through the online verticals. As for sportsbooks, the local audience is used to placing bets and withdrawing winnings through a flesh-and-blood agent. This aspect of the local market could prove to be a sticking point for operators who are used to online-only operation; convincing players that online payments are just as safe and secure as those made in retail betting shops.

The next pivotal moment in Colombia’s gambling history came in 2016 with the passage of the eGaming Act, which provided a legal framework for sports betting and online casino games. This Act effectively positioned Colombia as the first Latin American country to comprehensively regulate online gambling activities. Such legislation laid the groundwork for a well-structured and legal online gambling industry, attracting both local and international operators. The issuance of the first online gambling license in 2017 to Aquila Global Group, owner of Wplay.co, signaled the official launch of Colombia’s regulated online gambling market. The issuance of the first online gambling licence in 2017 to Aquila Global Group, owner of Wplay.co, signalled the official launch of Colombia’s regulated online gambling market.

By March 2020,online-based gaming produced a total of GGR US$33.483m and COP$20.24bn (US$4.5m) revenue for exploitation rights in the country. More than one hundred slot halls and video gaming machine parlors are scattered across the country. The Codere Group and CIRSA are two of the largest privately owned casino gaming operators in the local market. Authorized entities can provide gambling products at both national and regional levels. Revenue for the gambling sector was at $2.5bn and was buoyed by numerous sporting events.

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The primary iGaming law of 2001 enables both Coljuegos and the police to monitor the internet and block unlicensed or offshore sites. It has been reported that during the first half of 2022, Coljuegos blocked 1,577 websites that operated without a license. The online gambling regulatory framework in Colombia is still young and developing – new regulations are regularly introduced. For instance, the issue of responsible gambling has only been approached and regulated by Coljuegos as late as in 2022.

Our team of experts provides up-to-date insights, industry trends, and exclusive updates to keep you informed and ahead of the curve. Gambling law in Colombia has been devised in a manner to offer security for players and, at the same time, growth in the industry. Furthermore, the MoF oversees the allocation of gambling revenues to ensure that these funds are used effectively. By maintaining rigorous financial oversight, the Ministry of Finance creates online casino curacao legal a stable and transparent economic framework, supporting the country’s broader economic goals. Note that for the variable rate, RTP (Return to Player percentage) must be equal to at least 83% (or 17% of turnover), and real events betting must comply with the theoretical RTP formula.

The regulation introduces new technical and operational standards, including stricter requirements for software certification, real-time connectivity with the central system, and traceability of simulated events. These measures aim to strengthen supervision, prevent manipulation and ensure transparency, although they also entail significant adjustments for operators already working under the previous regulatory framework. Foreign online casinos can operate in Colombia only if they have been granted a license by Coljuegos.

Gambling market overview

WA.Technology offers personalised advice and a full spectrum of iGaming platform solutions to help you decide to start your business in the robust and reliable Colombian market. Artificial intelligence (AI) burst onto the iGaming landscape in Colombia, driving its evolution by leaps and bounds. This advance opens a range of opportunities for the sector, providing tools to improve the customer experience and optimise platform efficiency. Incorporating AI as a fundamental element in the future of iGaming becomes imperative for the growth and competitiveness of the sector. With the right platform software — like our turnkey solution — you can quickly and easily adjust your frontend in line with players’ expectations. Application fees Administrative fee (licence fee) – 1% of fixed + variable taxes paid annually (15% of GGR).

In March, Coljuegos released a list of more than 300 online gambling domains that it determined were serving Colombians in contravention of the law. The list contains such well-known names as Unibet, Betfair, PokerStars, and Intertops along with many smaller companies, like iNetBet and Challenge Casino. For instance, ۔com/espanol is deemed an illegal website, but the English-language ۔com is not.

Operators must have a surety or bank guarantee (Compliance guarantee) equal to at least 15% of the contract value to cover compliance obligations, salary and social benefits, and player deposits and prizes. This guarantee must be re-evaluated every six months during the concession holder’s first year of operations and then once every subsequent year after that. Acquiring a Coljuegos licence in Colombia involves significant initial costs aimed at ensuring operators are financially capable and committed to maintaining a compliant and secure gambling environment. Long before formal legalisation in 1943, it was a common pastime deeply ingrained in the social and cultural life of its citizens. Often centred around informal activities, popular forms of gambling typically included card games, cockfighting, and various types of lotteries. These activities were usually organised within communities, contributing to the fabric of society.

Colombian gamblers have access to a full range of gambling products, available at land-based venues or via desktop and mobile platforms. The local regulator, Coljuegos, reported a staggering 148% growth in online gambling revenue for the first half of 2021, as the sector generated a record $2.1 billion. Colombia is set to become a major gambling hub in the region if these positive trends continue. Coljuegos grants operating permits and monitors compliance with the terms of each agreement. Various requirements apply to operators seeking to enter the Colombian online market legally. Foreign firms must establish a local presence through a Colombia-based company and manage customers’ funds via a local bank approved by the Superintendent of Finance.

The country first legalized sports betting in 2016 with the introduction of the Colombian National Gambling Authority (Coljuegos). This body is responsible for overseeing all gambling activities within the country, including online sports betting. The gaming industry in Colombia is a monopoly held by the Government and is regulated under the Colombian Gambling Act, Law 643 enacted by Congress in 2001. Colombia is currently a reference for the industry in Latin America, since the structure of the law has been designed to provide efficient regulations issued by Coljuegos, the national agency. In this way, Colombia maintains the leading position in regulating gaming while promising even broader perspectives for market development.

Colombia has a blacklisting regime whereby the police identify illegal websites offering online betting and report them to the Ministry of Technology and Communications, which orders the relevant ISP blocking. Once the regulation was published, Coljuegos announced that it was introducing ISP blocking to all operators that had not requested an authorisation to operate in Colombia. The Colombian regulations do not state any requirements for B2B business; however, online operators must report all signed agreements with suppliers in order to operate under their licence. The confidentiality agreements between operators and providers are not enforceable against the regulator. The regulation states that any company willing to commercialise and offer a gaming portfolio must sign the relevant concession contract once the legal, financial and technical requirements have been fulfilled before Coljuegos.

The focus will remain on combating illegality, issuing a new technical inspection regulation for online games, and developing fiscal measures aimed at sustainability and formalisation, among other areas. In connection with online gambling operations, a tax reform for 2026 is being debated in the Senate to include VAT for online gaming bets at the rate of 19%. Notwithstanding, an operator holding a concession contract must guarantee that the terms and conditions – and compliance with the law – are respected with the registered players.

Colombian online casinos are overseen by ColJuegos, the country’s main regulatory body responsible for issuing licenses. Only gamble on platforms that possess a valid operating license from this organization. Confirm this by checking the list of authorized operators on the ColJuegos official website. This applies to all forms of gambling, including casinos, sports betting, and online gambling. Operators are required to verify the age of their customers to ensure compliance with this regulation. Failure to do so may result in penalties for the operator, including fines and the revocation of their license.

IGaming operators must also manage player funds locally, necessitating a bank account with a Colombian financial institution authorised by the Superintendency of Finance. In practice, this entails the regular submission of detailed reports on operator activities, including financial transactions, player behaviour, and compliance with regulatory standards. This includes implementing advanced security measures to protect against cyber threats and safeguard the confidentiality of personal and financial data. Among the issues discussed were the technical architecture of the new online inspection system, the definitive elimination of XML files, and real-time operation through secure connections to operators’ datamarts. The meetings also addressed data storage and sovereignty in Colombia, software certification, controlled technological transition, and international benchmarking with models from Brazil, Peru and Argentina. In this context, Coljuegos ordered the blocking of international websites offering bets on electoral events, arguing that this activity is illegal in Colombia.