Colombia: 16% Tax on Player Deposits in Online Gambling

Colombia: 16% Tax on Player Deposits in Online Gambling

Colombia is changing the taxation model for online gambling: decrees 0240 and 0241 introduce a 16% tax on every player deposit — regardless of the amount, payment method, or source of funds.

Tax Details

• The tax applies to every deposit on the online gambling platform
• It only applies to games of chance online
• Winnings are not taxed
• The deposit method does not matter: cash, bank transfer, crypto assets

Scope

• The tax applies to deposits both within the country and from abroad
• A key condition is that the funds must be credited to a Colombian platform’s gaming account

Who Collects

• The responsibility for collection is placed on the operators
• The operator withholds 16% at the time of deposit and remits it to the budget
• Violations result in sanctions from regulatory authorities

Market Consequences

• Every €100 deposit turns into €84 in the gaming account
• Offshore operators do not collect the tax — and gain a direct price advantage
• Some audience will shift to unlicensed platforms
• For operators — a new operational burden on each transaction

Conclusion

The 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 — players will deposit less frequently and in smaller amounts, impacting the frequency of deposits and the overall betting volume. In comparison: the GGR tax is paid by the operator from their margin, and the player does not feel it. The winnings tax is psychologically softer — you pay only if you are lucky. The government chose the deposit as the simplest collection point: money comes in — 16% to the budget. But this simplicity creates a direct incentive to move to offshore sites, where there is no tax.