Under the trend of the global gambling market moving towards digitalization and legalization, Latin America has become a new hot spot for global operators to layout. Among many countries, Colombia is widely regarded as the "lighthouse country of Latin American gambling regulation". As the first Latin American country to comprehensively legislate and regulate online gambling, Colombia has successfully attracted a large number of international and local operators with its stable and transparent regulatory system and continuously growing market size.
Legislation First: Latin America's Leading Regulatory Framework
The legalization of online gambling in Colombia began in 2016, when the country passed Act No. 1753, and on this basis, the national gambling regulatory agency Coljuegos launched the "Online Gaming Technical Requirements and Operational Specifications". This marked Colombia as the first country in Latin America to legalize and regulate online gambling, leading the region.
According to current regulations, the following forms of gambling can be licensed:
Sports betting (Fixed-odds betting)
Online slots and casino games
Online poker
Virtual sports and esports betting
Lottery and bingo games
All online gambling operators must apply to Coljuegos for an operating license, which has a term of 5 years and can be renewed. Applicants must establish a local legal entity and meet requirements in technical compliance, responsible gambling, anti-money laundering, and other aspects.
Market Opening and Competitive Landscape
As of early 2025, Coljuegos has issued online gambling licenses to more than 25 operators, including globally renowned brands such as BetPlay (local operator), RushBet (operated by Rush Street Interactive from the USA), Codere, Wplay.co, Betfair, Zamba.co, etc..
The success of the Colombian online gambling market is largely due to its "controlled opening" model: it provides growth space for local brands while welcoming foreign capital cooperation and technology input. The government imposes a 15% GGR tax rate on gambling revenue, plus an additional 1% technology regulatory fee and some charitable donations, with the revenue mainly used for national healthcare expenditures.
According to the latest data from Coljuegos, the annual revenue of the Colombian online gambling market has exceeded 800 billion Colombian pesos (about 200 million US dollars), with an annual growth rate of over 15%. During the pandemic, the number of users and betting volume exploded, and the trend has stabilized since, reflecting that the market has entered a healthy growth phase.
Regulatory Highlights and Innovative Practices
The Colombian gambling regulatory agency Coljuegos demonstrates high professionalism in system design and enforcement, mainly reflected in:
Technical compliance review: Requires all platforms to connect to the local certification system to ensure game fairness and data transparency.
User protection measures: Implements real-name registration, sets betting limits, self-exclusion tools, and mandatory rest mechanisms.
Anti-money laundering review: Operators must cooperate with the Financial Intelligence Unit (UIAF) to submit suspicious transaction reports and maintain a complete KYC system.
Market promotion control: Prohibits gambling advertisements targeting minors or vulnerable groups and audits promotional content.
Additionally, Coljuegos actively promotes the inclusion of esports and virtual sports in the regulatory system and is exploring the application of blockchain and payment innovation technologies in the gambling sector.
Challenges and Future Development Directions
Although the Colombian online gambling market is relatively mature, it still faces the following challenges:
Proliferation of illegal gambling platforms: Although Coljuegos blocks thousands of illegal websites annually, the use of VPNs and digital wallets keeps the black market active.
Technical regulatory capacity bottleneck: Regulatory authorities still need to keep up with international standards in data security and AI risk control.
Fragmented payment system: Some local banks and payment institutions still maintain a cautious attitude towards gambling payments, affecting user experience.
To address these issues, the Colombian government plans to further introduce a "whitelist mechanism" over the next three years, intensifying efforts to combat illegal gambling through international cooperation and regulatory technology. Meanwhile, Coljuegos has announced considerations for regulating cryptocurrency betting, paving the way for diversified future payment methods.
Latin American Replication Model? Colombian Regulatory Experience Being Exported to Surrounding Countries
Colombia has not only achieved success in the domestic market but has also become a "model" for other Latin American countries reforming their gambling systems. Peru, Argentina, Brazil, Mexico, and other countries have recently referred to Colombia's legislative and regulatory paths to formulate localized regulations.
International gambling companies generally view Colombia as a "bridgehead" for entering the Latin American market. On one hand, it provides a controllable compliance environment; on the other hand, it also offers market advantages such as a large user base, high mobile payment penetration, and a strong sports culture.
Conclusion
The success of the Colombian online gambling regulatory model proves that in a region like Latin America, where potential is high but regulations are fragmented, the strategy of "legislation first, then opening up" can bring dual wins of tax revenue and regulation for the government, order and growth for the industry, and safety and trust for users.
As more countries step onto the regulatory track, Colombia will continue to play a leading role in regional gambling competition, and its experience will also become an important reference for other developing countries advancing the legalization of digital gambling.
