The Colombian government has decided to increase the tax on online gambling temporarily. This is part of a plan to increase the country’s revenues. The authorities expect to raise more than 1 trillion pesos (about $238 million) through new taxes, including tax on online gambling, oil and coal exports.
A 19% VAT is now being imposed on online gaming. This temporary measure will be in effect for 90 days. The tax was 15-17% before, but the government has decided to increase it. The measure is expected to have a positive effect, although Colombia is not even among the top ten countries with the highest number of gambling people.
The new tax will affect digital platforms, including sports betting, soccer, and casinos. This market is growing rapidly: over the last 10 years, Colombia’s gaming industry has increased its GDP by 133%, of which 53% is related to gambling. Arcade games, including Plinko, are particularly popular. The latter has become popular due to its fast rounds and addictive gameplay. There are even gambling-related websites dedicated to this game. One of the most visited ones is plinkogames. It provides detailed information about Plinko and a selection of online casinos with this game.
Some experts believe that due to the tax increase, some players will move to illegal platforms to avoid additional costs. This may harm the legal market and reduce state revenues.
Operators may also shift the tax to customers, increasing the cost of bets. This will decrease the number of players, negatively affecting the whole industry.
In addition to the gambling tax, a 1% tax on oil and coal exports has been introduced. Critics warn that this could increase the price of fuel and other commodities, worsening citizens’ financial situation.
Authorities say the money raised will help solve the humanitarian crisis in the Katatumbo region. Armed conflict has escalated there, killing at least 100 people and displacing 20,000.
In recent weeks, the region has seen clashes between ELN and EMBF groups. Among the victims were former participants in peace agreements, activists, and human rights defenders.
The situation in Colombia remains complex. New taxes should help the country cope with the crisis, but their economic impact is still unclear.
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