The Constitutional Court of Colombia recently suspended an emergency decree that included a 19% VAT on gambling, with online gambling now only subject to a 15% standard gambling tax, and it is highly unlikely that this VAT will be reinstated in the election year of 2026. Meanwhile, the city council of Baguio City in the Philippines has explicitly rejected the E-Bingo business application of RCC Global, adhering to the concept of a "city with character." Both places have adjusted their gambling policies from the dimensions of national taxation and city access, and relevant cross-border gambling compliance cases can be referenced on the PASA official website.
Colombia: 19% Gambling VAT Paused, Restart Unlikely in Election Year
Colombia's gambling tax policy has undergone significant adjustments, centered around the constitutionality dispute of the emergency decree:
Policy change: On January 29, the Constitutional Court, citing doubts about its constitutionality, temporarily suspended Emergency Decree No. 1390, which included a 19% VAT on online gambling gross revenue (GGR). Currently, online gambling is only subject to a 15% standard GGR tax, and this suspension will continue until the full court's final decision;
Tax background: The 19% VAT was initially levied on betting deposits, introduced in February last year to cover the governance costs of unrest in the Catatumbo region, later shifting to GGR collection. The original policy expired on December 31, 2025;
Most likely scenario (most favorable to operators): Normalization of VAT exemption, retaining only the 15% gambling tax, with the government postponing new tax proposals until after the 2026 elections;
Low probability scenario: Restoration of the deposit-based VAT, but new legislation or decrees are needed, which are difficult to achieve in the short term;
Very low probability scenario: Restarting GGR VAT through regular tax laws, but 2026 is an election year, and new tax legislation is "politically very difficult";
Three potential scenarios (analyzed by Juan Camilo Carrasco, partner at Sora Lawyers):
Key resistance: In 2025, the government's attempt to permanently impose the deposit VAT was rejected by the Senate's Fourth Committee by a vote of 9-4, with widespread congressional opposition to taxing the gambling industry.
Baguio City: Rejecting Gambling Applications, Upholding City Character and Community Welfare
The decision-making of Baguio City Council highlights considerations for the city's long-term development, clearly delineating boundaries with the gambling industry:
Core decision: Formally rejected RCC Global's application to open E-Bingo at Cedar Peak area on Mabini Street, refusing to rely on gambling revenue to drive city development;
Reasons for opposition: Pointed out that gambling activities like E-Bingo "exploit human weaknesses," detrimental to community building and sustainable development, citing the stance of the Supreme Court of the Philippines, emphasizing that "bingo fundraising is not a long-term plan";
Alternative paths: Suggested promoting sports, volunteer services, and local cultural heritage as non-gambling activities, advocating for shaping city identity through self-discipline and cultural construction;
Subsequent actions: Promoting the review of the city's gambling business licensing policies, encouraging communities to explore non-gambling fundraising methods; previously proposed to cancel the E-Bingo business at the basement of Maharlika Livelihood Complex, which was temporarily undecided due to a fire.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
