COLOMBIA Law and Practice Contributed by: Juan Camilo Carrasco, Asensi Abogados
Breach of Contract Acts and omissions that constitute a breach of con- tract include: • not providing the performance guarantee; • not complying with AML regulation; • not complying with the contractual obligations and their appendices (ie, technical requirements and data model documents); • evasion of exploitation rights and administrative cost; and • financial penalties (see 11.3 Financial Penalties ); • the termination of the contract (ie, the most severe sanction), without prejudice to any applicable fines or penalties; or • disqualification from operating games (which can be remedied). Operating Games While Being Disqualified This is punishable with: • criminal proceedings against those legally respon- sible – the unlawful exercise of monopoly profit activities is defined as a crime by Colombian law, and exploitation rights are considered public resources. Hence, non-payment of such resources may lead to tax liability proceedings; • invalidity and termination of the administrative act, and termination of the contract; and • sanctions that range from fines to criminal and tax liability. • breach of the Advertising Resolution. Breach of contract is punishable with:
Coljuegos regulates and controls the following games offered at national level (Decree 4142 of 2011): • land-based casinos and bingo; • METs; and • national raffles and promotional games. It also regulates and controls novelty games such as: • online gaming; • online lotto ( Baloto ); • Super Astro (a fixed-odds betting game); • pari-mutuel sports betting and betting on sports events; and • Keno. The CNJSA is in charge of games offered at regional level (Decree 4144 of 2011), such as: • regional lotteries; • permanent betting (known as “chance”); • instant lotto; • horse race betting; and • regional raffles. Coljuego’s primary functions are the operation, exploi- tation and administration of games forming part of the rental monopoly on games of chance that are not attributed to another entity by a legal provision. Coljuegos has wide powers to issue regulations for new games in this category. The power to approve such regulations falls on the board of directors of Coljuegos and the president of the other entity. The CNJSA has a duty to approve and issue the regu- lations (and their modifications) for games of chance that are exploited by territorial entities. 4.2 Regulatory Approach As the national gambling authority, Coljuegos has to research and regulate the gaming portfolio in accord- ance with the new technologies available. This pro- activeness requires the investment of important resources so that the regulator will be scientifically and technologically well informed. Sometimes those resources are not available.
4. Licensing and Regulatory Framework 4.1 Regulatory Authority
There are two levels of administration and control in the gambling sector: Coljuegos and the CNJSA. At the regional level, administration is the responsibility of the regional government; however, control belongs to the CNJSA and the Health Ministry.
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