COLOMBIA Law and Practice Contributed by: Juan Camilo Carrasco, Asensi Abogados
12. Tax 12.1 Tax Rate by Sector
• casino/table games – a fixed monthly fee of four times the LMMW (roulettes, poker, blackjack, etc); • slots/METs – 12% of GGR, or 30%, 40% or 45% of the LMMW; • METs single sites – 12% of GGR, or 30%, 40% or 45% of the LMMW (the rates are progressive for slot-machine games and depend on the value of the bet each machine receives); • bingo: (a) between one and three LMDW(s); (b) for municipalities under 100,000 inhabitants and cards of up to COP250 – one LMDW; (c) for municipalities under 100,000 inhabitants and cards of more than COP250 – one-and-a- half LMDWs; (d) for municipalities with more than 100,000 inhabitants and cards of up to COP250 – one LMDW; (e) for bingo cards of COP250 to COP500 – one- and-a-half LMDWs; (f) for bingo cards of more than COP500 – three LMDWs; and (g) for interconnected chairs, no bingo card will pay a lower rate than that established for 200 seats; • online (fixed) – an annual fixed rate applies to land-based and online games, calculated as 811 x LMMW per year of operation (equivalent to approximately USD290,000) plus 1% over the fixed exploitation rights as administrative expenses; and • online (variable): (a) 15% on GGR; (b) 1% over the variable exploitation rights as administrative expenses; (c) RTP must be equal to, or over, 83% (otherwise 17% of turnover); and (d) slots and real events betting must comply with the theoretical RTP formula. At the regional level The following applies at the regional level: • lottery – 12% of monthly turnover; • permanent betting – 12% of monthly turnover; and • betting – 17% of monthly turnover.
The Gambling Act and the regulatory decrees have stated two types of fees for the gambling industry: exploitation rights (royalties) and administrative fees. Additionally, the majority of gambling activities – both national and regional – are charged with VAT. Regarding land-based operations, VAT applies in accordance with the explanation provided later in this document. In connection with online gambling operations, a tax reform for 2026 is being debated in the Senate to include VAT for online gaming bets at the rate of 19%. Exploitation rights are levied on all national and regional games, and the amounts collected from them go to the health and pension system rather than to the Tax Authority. The administrative fee is equivalent to 1% over the fixed and variable exploitation rights paid yearly and monthly to Coljuegos or the regional authority. The law prohibits any fees, stamp duties or taxes of a municipal, district or departmental nature, other than those that must be paid to the national government. It is important to bear in mind that the level of enforce- ment and surveillance by the Tax Authority in respect of gambling operators is the same as for companies As stated in 4.9 Ongoing Annual Fees , to understand the taxation system, one must consider the legal mini- mum monthly wage, a national index that is changed on January 1st by a governmental decree. The 2025 legal minimum wages are: • legal minimum monthly wage (LMMW) – COP1.423.500million; and • legal minimum daily wage (LMDW) – COP47,450. At the national level The following applies at the national level: of any other business sector. Royalties (Exploitation Rights)
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