Colombia: 16% tax on player deposits in online gambling

Colombia is reshaping its online gambling tax model: Decrees 0240 and 0241 introduce a 16% tax on every player deposit — regardless of amount, payment method, or source of funds.

Tax framework

🔵 The tax applies to every deposit made to an online gambling platform

🔵 Applies only to online games of chance

🔵 Winnings are not taxed

🔵 Payment method does not matter: cash, bank transfer, crypto

Scope

🔴 The tax applies to both domestic and cross-border deposits

🔴 Key condition — funds must be credited to a Colombian-licensed platform account

Collection mechanism

🔵 Operators are responsible for collecting the tax

🔵 16% is deducted at the moment of deposit and transferred to the state budget

🔵 Non-compliance leads to regulatory sanctions

Market impact

🔴 Every € 100 deposit becomes € 84 in the player’s account

🔴 Offshore operators do not apply the tax — creating a direct pricing advantage

🔴 Part of the audience will shift to unlicensed platforms

🔴 Operators face additional operational load on every transaction

Key takeaway

A deposit tax is one of the most painful formats for players: the loss is felt before the first bet, not after a win. This directly affects behavior — users will deposit less often and in smaller amounts, impacting both deposit frequency and total betting volume.

For comparison:

— GGR tax is paid from the operator’s margin and is invisible to the player

— Winnings tax is psychologically softer — you only pay if you win

The government chose deposits as the simplest collection point: money comes in → 16% goes to the budget. But this simplicity creates a strong incentive to move to offshore platforms where no such tax exists.