President Petro Reinstates 16% Online Gambling Deposit Tax to Fund Colombian Flood Recovery Efforts

President Petro issues emergency decree for 16% tax on online betting deposits to fund flood recovery and bridge a COP8.6 trillion budget gap.

By: AXL Media

Published: Mar 17, 2026, 12:01 PM EDT

Source: The information in this article was sourced from iGB

Emergency Fiscal Measures Targeting the Digital Betting Sector

The Colombian government has pivoted back to the gambling industry as a primary source of emergency funding, introducing a 16 percent consumption tax on all online deposits. Signed by President Gustavo Petro, the decree is a direct response to catastrophic flooding that has devastated eight provinces, creating an urgent need for disaster relief capital. This new levy applies to every cash deposit made by bettors to licensed online games of chance, encompassing both locally based companies and international entities providing services within the country. The administration asserts that this move is a necessary mechanical adjustment to provide the COP8.6 trillion required to stabilize the national 2026 budget.

Budgetary Constraints Driving Rapid Regulatory Shifts

This tax reintroduction follows a period of intense political friction regarding the nation's financial planning, particularly after the original 2026 budget proposal was rejected in late 2025. While a revised budget was eventually pushed through, it remained COP10 trillion lower than the executive branch’s initial requirements, leaving the disaster and public calamity funds significantly undercapitalized. According to government statements, the reduced allocation proved insufficient for the annual provision of essential relief services. Consequently, the gambling sector has once again been placed under the fiscal spotlight to bridge the gap left by legislative budget cuts.

Historical Precedents and the Struggle Over Gambling Levies

The move marks a familiar pattern of emergency taxation for the Colombian igaming industry, which faced a 19 percent VAT on deposits just over a year ago. That previous measure, triggered by civil disturbances in the Catatumbo region, led to a sharp 30 percent decline in online gross gaming revenue within months of its implementation. This volatility has historically impacted the Colombian health sector, which relies heavily on gambling tax contributions for its annual funding. The government’s latest decree acknowledges these previous attempts but argues that new crises permit the repeated use of exceptional tax measures to address distinct national emergencies.