Exclusive interview: Fecoljuegos analyses the Colombian gaming market, now exceeding COP 45 billion
The gaming industry in Colombia is a well-established and regulated sector that provides substantial employment, investment, and health system contributions. When the gambling sector contributed more than COP 1 billion (USD$262,060,000) to the subsidised health system in 2024, it reinforced its vital role in the economy. Colombia stands out as an example of modern legislation that encourages the sector’s sustainable development, and it has substantial growth potential throughout Latin America. This was explained by Evert Montero Cárdenas (featured image), president of Fecoljuegos and the first president of the International Federation of Gaming Authorities for LatAM (FIJA), in an exclusive interview with SiGMA News.
Size of the Colombian gaming market
The Colombian gaming sector is a mature and strictly regulated industry that generates employment, investment, and significantly contributes to public health. In 2024, over COP 1 billion was transferred from gaming to the subsidised health system, and nearly COP 1.5 billion when including land-based contributions. Casinos and bingo halls represent approximately 36 percent of this revenue, with over 3,500 authorised venues and more than 100,000 legally operating machines. However, although gross sales approach COP 45 billion (USD$12 billion), the real operating income barely reaches COP 2.9 billion, subject to an effective tax burden close to 66 percent, including VAT and exploitation rights. According to Montero, “this tax model is eroding the sustainability of regulated businesses and weakening the competitiveness of the legal sector against illegal offerings.”
Fastest-growing segments in the Colombian gaming market
In contrast to the online market, which faces a drop of nearly 30 percent in income due to the tax burden, the retail channel (casinos, bingo rooms and electronic machines) shows a slight but steady growth of between 1% and 3% in 2024. This segment is resilient and provides employment and tourism benefits, although it is also pressured by taxes and illegal competition. Montero clarifies that there should be no rivalry between retail and online channels since “both channels are part of the same regulated ecosystem,” but the online channel, which was the main engine of growth and modernisation, is being strangled by “anti-technical tax decisions and commercial restrictions”. With gross sales of approximately COP 45 billion, operators’ real operating income stands barely around COP 2.9 billion.
Structural gaps clearly highlighted by Fecoljuegos
Structural gaps persist that affect the competitiveness and legality of the sector. Montero suggests switching to a straightforward, unified system based on actual revenue (GGR) in order to make it sustainable and competitive, as, for now, the fiscal gap stems from a tax structure that does not reflect the industry’s real earning capacity. The legality gap is illustrated by the inadequate regulation of illegal gaming, both land-based and online, which jeopardises revenue collection and the regulated market.
Additionally, a public perception gap sustains the historical stigma associated with the sector. Finally, the technology gap is evident in the lack of a flexible regulatory framework that addresses the convergence of physical and digital gaming, even though “the player is already living hybrid experiences.”
Colombia’s pioneering role in online regulation in Latin America
Colombia was the first Latin American country to establish a comprehensive online gaming regulatory framework, allowing legal operation of sports betting and online gambling since 2016 under licences granted by Coljuegos. According to Montero, this decision was “brave, visionary, and technical”, as it enabled the channelling of demand towards legality, ensured public revenue, and protected consumers. Colombian regulation set a regional benchmark with modern standards for the gaming industry. It sustained steady growth from 2016 to 2024, thanks to its technological infrastructure for traceability and fiscal control.
Lessons from Colombia for the next regulatory wave
Evert Montero highlights five key lessons to guide regulatory evolution in Colombia and serve as a guide for other countries:
- Omnichannel: “The future of legal gaming is omnichannel,” integrating physical and digital offers so players can move easily and within one regulatory framework. This strengthens supervision and compliance.
- Data and traceability: Real-time online interconnection with regulators must be strengthened with advanced analytics and artificial intelligence to fight the illegal market.
- Technical certifications: The system has established robust certification and audit standards, but must be updated to include emerging technologies without increasing costs.
- Intelligent supervision: Fosters permanent dialogue between regulators and operators for supervision based on evidence, risk indicators, and technology.
- Regional approach: Colombia must maintain its leadership by updating its model to remain a world reference in regulation, digital governance and cooperation.
Areas for new regulation: omnichannel, payments and certification
Enabling omnichannel operation should be the main goal of a new regulatory framework, which would ensure that operators manage online and physical offerings under the same licences and requirements, such as KYC and AML. Additionally, it is crucial to leverage artificial intelligence and institutional collaboration to improve the use of data and payment traceability in order to provide transparency and control. Lastly, it is essential to update technical certifications to reflect cutting-edge technologies such as blockchain, hybrid gaming, and generative AI without increasing entry barriers. These areas can provide a regulatory framework that is flexible enough to preserve the integrity of the industry without impeding innovation.
From Fecoljuegos, Montero concludes that the Colombian gaming market is solid and holds enormous potential. However, he warns that the tax burden and insufficient effective control over online illegality threaten the sector’s sustainability. Therefore, he reiterates that only an urgent regulatory update can protect legal gaming and secure a competitive, sustainable ecosystem for the benefit of both the country and its public health system.
This article was first published in Spanish on 25 November 2025.
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