Colombia regulator blocks 10,000 websites and social media profiles for illegal betting
In a release dated 3 February, Coljuegos said it had blocked these sites for offering gambling activities without maintaining a local licence and therefore not having paid the yearly licence fee.
Just 16 sites are currently licensed to offer legal online betting in Colombia. Those companies paid approximately COP435.2 billion (£84.1 million/€101.2 million/$104.5 million) in licence fees over 2024. Coljuegos transferred all of that money to Colombia’s subsidised health system.
This authorisation fee for licensees is considered relatively steep at 811x the Colombian minimum wage.
The blocked sites in Colombia included virtual casinos and bingo halls, as well as sports betting operators offering illegal raffles.
Coljuegos revealed it is in the process of conducting 35 administrative sanctioning processes against influencers and companies operating and supporting illegal betting through social networks in Colombia.
Additionally, Coljuegos has requested help from the national police’s cyber centre and tech giant Meta, in order to block another 289 social media profiles conducting raffles and bingo, as well as advertising, for unlicensed betting operators.
Those found responsible for operating gambling illegally in Colombia risk a fine of COP142,350,000. This is 100x the current monthly minimum wage in the country, Coljuegos said.
Blocking illegal sites to protecting the health system
Coljuegos president Marco Emilio Hincapié said site blocking helps the government maintain its objective to better protect Colombia’s health industry.
“During our administration we have managed to decisively attack illegal operators who, through fraudulent sites, operate games of chance and luck without the respective authorisation,” Hincapié explained. “This is the highest number of blocked portals in the history of our entity.
“Via the entity, we are complying with the instructions of President Gustavo Petro: to attack illegality in the industry and protect resources for the health of Colombians.”
New tax a concern for betting operators
Kaizen Gaming-owned Betano took the tally of licensed online operators in Colombia to 16 in November. Betano joined fellow international operators in Betsson and Rush Street Interactive’s RushBet in securing authorisation.
However, the Colombian gambling industry was dealt a potentially huge blow last week as the government reintroduced proposals for a new value-added tax for online betting at rate stands at 19%. According to a legal note shared on LinkedIn by local lawyer Juan Camilo Carrasco, it hasn’t yet been clarified whether the 19% will be applied to turnover or deposits.
The tax has been reintroduced on a temporary emergency basis for an initial 90-day period.
The tax’s permanent implementation was previously halted back in December after the Colombian Association of Gaming Operators (Asojuegos) warned the tax could have “devastating consequences” on the industry, particularly in regards to driving players and operators into the black market.