Stake plots bonus cashback in Colombia to cover emergency VAT on deposits
Crypto-first operator says it will take the full brunt of 19% cash deposit, with players’ bets or winnings not affected
Stake has said it will compensate its players in Colombia by covering the recently introduced emergency 19% VAT on deposits.
Earlier this month, President Gustavo Petro proposed the emergency tax, which subsequently came into effect from 22 February and is expected to be in place until December 2025.
The controversial tax has raised concerns with operators including Codere Online and Rush Street Interactive, with the former claiming it will lead to black market growth.
While Codere Online and Rush Street Interactive both said they would monitor the situation before deciding on mitigation strategies, Stake has confirmed it will cover the costs for consumers.
The operator has created the cashback promotion that will hand players a bonus amounting to the amount of VAT they are due to pay when making a deposit.
As an example, should a user deposit COL100,000 (£19.38), the VAT of COL15,999 will be deducted as a levy. Stake will then grant a cash bonus of COL15,999 to compensate the player.
Stake’s Latam general country manager Diana Otálora said: “At Stake Colombia, our users are our top priority, and that’s why we have to adapt to the government’s measure regarding the 19% tax and comply with the required deadlines.
“Therefore, we are adopting internal measures so that our customers can continue playing without being affected by this situation.”
Stake also confirmed that the VAT decree “will not affect the bets or winnings that users obtain on the site”.
Stake moved into Colombia in 2023 after it acquired Betfair’s local business from Flutter in an undisclosed deal.
During February, Stake received its full licence for the newly regulated Brazilian market but also exited the UK following a Gambling Commission investigation.