Colombia’s Push for Permanent Online Gambling VAT: What It Means for Video Poker Operators and Players

The outgoing government of Colombian President Gustavo Petro has submitted a new tax reform bill to Congress that would make a permanent 19% VAT on online gambling, including video poker. With Petro set to be replaced by President-elect Abelardo de la Espriella on 7 August 2026, this is the administration’s final legislative push to lock in the tax before the transition. For video poker operators and players in Colombia, the move could reshape the cost structure of the market.

The 19% VAT was first introduced on an emergency basis in February 2025, ostensibly to fund the government’s response to civil disturbances in the Catatumbo region. The tax initially applied to player deposits, but after industry pushback and legal challenges, it was shifted to a gross gaming revenue (GGR) basis. However, a Constitutional Court suspension in early 2026 and a subsequent emergency decree imposing a 16% consumption tax on deposits in March 2026 have created a patchwork of temporary measures. The new bill aims to replace all this with a permanent 19% VAT on deposits.

Key facts at a glance

How the VAT affects video poker operators

Video poker, as a subcategory of online gambling, would be subject to the same 19% tax on deposits. This means that for every deposit a player makes, the operator must remit 19% to the government. In practice, operators have responded by crediting players with bonuses to offset the tax, effectively absorbing the cost to keep players engaged. But the Colombian government’s own bill claims there is “no evidence of significant deterioration in the sector that would justify terminating or scaling back the measure.”

This claim contradicts data from the Colombian Federation of Gambling Entrepreneurs, which reported in April 2025 that online GGR had plummeted 30% in the two months following the tax’s introduction. For video poker rooms, which often operate on thinner margins than slots or table games, a sustained decline in GGR could force operators to reduce payouts, cut bonuses, or exit the market entirely.

Industry response and player impact

According to the source article from iGaming Business, a number of key operators have credited players with bonuses to offset the new tax. This practice helps retain players in the short term but may not be sustainable if the tax becomes permanent. Players may see lower effective returns on their deposits, especially if operators reduce the frequency or size of future bonuses.

The Colombian government also argues that the VAT “eliminates a market distortion,” pointing out that land-based casinos already face a 19% VAT. Without the tax, online platforms would receive “preferential treatment” compared to physical gambling establishments. The bill states that applying the VAT to online platforms “reduces the differential treatment” and is justified by principles of “progressivity, horizontal equity, efficiency and simplicity.”

What remains unclear

It is not yet known whether the new bill will pass before Petro leaves office. The previous attempt, the Financing Law, was rejected by the Senate’s Fourth Committee in December 2025. The tax reform bill faces the same legislative hurdles. Additionally, the incoming administration of Abelardo de la Espriella has not publicly stated its position on the VAT. If the bill stalls, the temporary 16% consumption tax on deposits (set to expire on 31 December 2026) could remain in effect, or a new government may propose its own tax framework.

For video poker operators and players, the uncertainty makes it difficult to plan long-term investments. Those considering entering the Colombian market or expanding existing operations should monitor the bill’s progress closely.

Source: iGaming Business, “Colombia government makes another attempt to implement online gambling VAT,” 24 July 2026. https://igamingbusiness.com/finance/tax/colombia-government-online-gambling-vat-permanent/