Colombia moves towards online regulation
Online operators could be licensed by 2016 as regulator moves to clamp down on offshore operators
Colombia’s government is set to regulate online gambling before the end of the year as part of a major amendment to its gaming laws, eGaming Review understands.
Colombia’s Congress passed the amendment earlier this year and it is now expected to be implemented by executive order in the coming months.
Although a timescale has yet to be laid down for the issuance of online licenses, eGR understands firms could be operating licensed online offerings as early as next year.
The amendment creates provision for taxable “novelty games” beyond the already regulated lottery. Such games include online casino, slots and sportsbook, and will be open to any operator which acquires a licence through the country’s gambling authority Coljuegos.
And according to Juan Carlos Uribe and Karen SantamarÃa from Bogota-based law firm Triana, Uribe & Michelsen, the law may leave the door open to foreign operators to apply for a licence.
Tax rates for the new online offering will be set to at least 17% of gross income, with operators also having to pay an annual fee of around £115,000.
The government predicts the launch of regulated online gambling will boost the £100m in taxes it currently collects from the country’s national lottery and land-based sector each year.
Last month Coljuegos president Cristina Arango Olaya told gaming magazine El Diario del Juego the regulator was moving to crackdown on unlicensed online operators taking bets in Colombia.
Although Colombia has offered bricks and mortar parimutuel sports betting since November, turnover has been limited and during this summer’s Copa America a number of unlicensed websites sprung up to target Colombia punters.
The move comes as Brazil is also making a significant move towards online regulation as South America begins to open up its gambling monopolies to competition.