Colombia Gambling Tax: What Bettors Need to Know (2026)

How Colombia Taxes Gambling Winnings

Colombia has one of Latin America's most developed regulated gambling markets. The country established clear tax rules when it legalized online gambling in 2016.

The headline: Gambling winnings in Colombia are subject to 20% withholding tax on net gains.

Colombia's Gambling Regulation

Coljuegos (Empresa Industrial y Comercial del Estado) regulates all gambling:

• Issues online gambling licenses
• Oversees sports betting operators
• Monitors compliance and taxation
• Protects consumers

Legal framework:

• Law 1393 of 2010: Established gambling taxation
• Decree 2024 of 2017: Detailed online gambling rules
• Regular updates to regulations

Tax Rate Structure

For licensed Colombian operators:

• 20% withholding on net winnings above threshold
• Deducted automatically by operator
• Threshold: 48 UVT (Unidad de Valor Tributario)

UVT in 2026:

• 1 UVT ≈ COP 47,065 (adjusted annually)
• 48 UVT ≈ COP 2,259,120 threshold
• Below threshold: Tax-free
• Above threshold: 20% on amount over threshold

Example:

• Win COP 5,000,000
• Threshold: COP 2,259,120
• Taxable: COP 2,740,880
• Tax: COP 548,176 (20%)

How Withholding Works

Process:

1. Operator tracks your net position
2. When winnings exceed threshold, 20% withheld
3. Tax remitted to DIAN (tax authority)
4. You receive net amount

Calculation period:

• Per withdrawal or transaction
• Some operators calculate monthly
• Varies by operator implementation

Licensed Operators in Colombia

Coljuegos licenses numerous operators:

Major licensed operators:

• Betplay (local leader)
• Wplay
• Rushbet
• Codere Colombia
• Betsson Colombia
• Zamba
• Luckia Colombia
• BetGana
• Sportium Colombia
• 1xBet Colombia

Verification: Check the Coljuegos website for the current authorized operator list.

Online vs. Land-Based

Online sports betting:

• Must use Coljuegos-licensed sites
• 20% withholding applies
• Digital registration required
• Geo-blocking for non-Colombia IPs

Land-based betting:

• Casinos and betting shops
• Same 20% rate applies
• Physical ID verification

Professional Gambling

If gambling is your primary business:

Classification factors:

• Regular, systematic activity
• Primary income source
• Professional methods used
• Significant time investment

Tax treatment:

• May be classified as independent income
• Different reporting requirements
• Can potentially deduct expenses
• Must register with DIAN

In practice: Most bettors remain under standard withholding rules.

Record-Keeping Requirements

Colombian tax law requires documentation:

Keep records of:

• All betting transactions
• Operator account statements
• Withdrawal confirmations showing withholding
• Bank statements
• Proof of operator licensing

Retention: Minimum 5 years

Why important:

• DIAN audit protection
• Prove source of funds
• Support tax declarations

Annual Tax Return

For recreational gamblers:

• Gambling winnings may need to be declared
• Withholding credited against liability
• Form 210 (declaración de renta)

Thresholds for filing:

• Income above certain levels
• Assets above certain levels
• Various criteria apply

Key dates:

• Filing period: August-October (varies by last digit of NIT)
• Check DIAN calendar annually

Value Betting and Arbitrage in Colombia

For systematic bettors:

Tax impact:

• 20% rate significantly reduces edge
• A 5% EV bet becomes 4% after tax
• Threshold provides some relief

Market characteristics:

• Strong fútbol coverage (Liga BetPlay, international)
• Growing operator competition
• Reasonable odds availability
• Local market focus

Practical considerations:

• Only licensed operators available
• Factor 20% into calculations
• Threshold helps smaller winners

Currency and Banking

Colombian Peso (COP):

• All licensed betting in COP
• No USD accounts at local operators
• Bank transfers and local methods

PSE (Pagos Seguros en Línea):

• Common deposit method
• Direct bank integration
• Clear transaction records

Penalties for Non-Compliance

Using unlicensed operators or failing to report:

Risks:

• No consumer protection
• No dispute resolution
• Potential fines from DIAN
• Account/banking issues

DIAN enforcement:

• Cross-references with operator reports
• Banking transaction monitoring
• Information sharing agreements

Colombia vs. Regional Peers

Colombia's rate is moderate for the region.

The Colombian Market Advantage

Why Colombia is interesting for bettors:

• Regulated, protected market
• Growing competition among operators
• Good fútbol coverage
• Improving technology and odds

Limitations:

• 20% tax reduces profitability
• Market focused on local/regional events
• Limited compared to European markets

Key Takeaways

1. 20% withholding tax on winnings above 48 UVT threshold
2. Coljuegos licensing required for legal operation
3. Operators handle withholding automatically
4. Below threshold winnings are tax-free
5. Keep records for DIAN compliance
6. Net calculation means losses offset gains

This guide is for informational purposes. For personal tax advice, consult a Colombian tax professional (contador público).