Colombia proposes 19% tax on online gambling deposits
Colombia’s government has introduced legislation proposing a 19% value-added tax on online gambling deposits, raising fresh concerns for licensed operators already facing significant taxation pressures.
The Economic Rescue Law, submitted to Congress on October 29 as Bill 477 of 2026, would extend the country’s standard VAT rate to online betting, casinos, slot machines and bingo operations.
Under Article 41, Colombian online gambling operators would be taxed on deposits made by customers using money or cryptocurrencies, with the taxable base calculated by dividing the deposited amount by 1.19, effectively incorporating the tax into the deposit.
Traditional lotteries would be exempt.
Land-based gambling businesses would face separate calculations, including monthly taxable bases of 40 tax units per slot machine and 580 units per gaming table.
The proposal follows previous attempts to increase gambling taxation in Colombia, including a 19% VAT introduced through emergency measures in 2025.
The industry has repeatedly warned that taxing deposits rather than gross gaming revenue could undermine the competitiveness of licensed operators.
The latest proposal also affected investor sentiment towards Rush Street Interactive, which operates the RushBet brand in Colombia.
Rush Street shares fell approximately 11% during trading on October 30 following reports of the legislation, which is bittersweet, given they were celebrating their bullish third quarter financial results.
However, the bill remains at an early stage and must pass through Congress before becoming law, with lawmakers able to amend or remove the gambling provisions during the legislative process.
