Colombia’s Top Court Freezes Online Gambling Tax Hike

Summary

The Constitutional Court of Colombia has provisionally suspended Legislative Decree 1390 of 2025, a measure that would have imposed a 19% value-added tax on online betting and gambling services. The suspension, passed by a 6-2 majority, halts the measure while the Court conducts a full constitutional review after magistrate Carlos Camargo highlighted procedural flaws and an insufficient justification for invoking emergency powers.

The decree was introduced under a declared economic and social emergency and was expected to raise roughly 11 trillion Colombian pesos (about $3 billion). While the suspension gives the gambling industry short-term relief, the underlying fiscal pressure and the possibility of future tax measures remain.

Key Points

The Constitutional Court provisionally blocked Legislative Decree 1390 of 2025, which would have applied a 19% VAT to online gambling.
The decision was made by a 6-2 majority after magistrate Carlos Camargo flagged serious procedural and justification issues with the emergency decree.
The tax was introduced under a declared economic and social emergency and was projected to raise ~11 trillion pesos (~$3bn).
Operators warned a sudden VAT rise could push players to unregulated offshore platforms and undermine efforts to channel bettors to licensed offerings.
Colombia continues to rely on gambling revenue; the regulator Coljuegos is launching new products and stepping up enforcement against unlicensed operators.

Why should I read this?

Short answer: if you care about betting markets, regulation or tax risk in LatAm, this matters. The Court just hit pause on a big tax that would have changed pricing, margins and player behaviour overnight. We read the legal angles so you don’t have to — bookmark this one if you’re tracking market stability or planning operations in Colombia.

Context and Relevance

The ruling highlights two wider trends: governments turning to fast tax measures under emergency powers to plug fiscal gaps, and courts pushing back where procedure or constitutionality looks shaky. For the gambling sector, it underscores regulatory volatility — while licensed operators gain temporary relief, the state’s reliance on gaming for revenue means the issue is unlikely to disappear. Also relevant are enforcement moves (such as ISP blocks against unlicensed platforms) that show Colombia is keen to protect regulated channels even as it debates how to tax them.