Coljuegos blocked 10,000 illegal betting websites and profiles to enforce compliance and protect public health finances. Only 16 sites are legally licensed, and hefty penalties await violators. Additionally, the introduction of a tax on online betting raises concerns for operators about potential impacts on the industry.
Colombia’s gambling regulator, Coljuegos, has taken decisive action by blocking 10,000 websites and social media profiles linked to illegal betting. This crackdown was announced on February 3, highlighting the importance of maintaining a local license to offer gambling activities legally. Currently, only 16 licensed sites exist in the country, which are compliant with local regulations and contribute significant funds to Colombia’s health system.
The ban includes various illegal gambling formats, such as virtual casinos, bingo halls, and unauthorized sports betting operations. Coljuegos is pursuing 35 administrative sanctions against influencers and companies that support these illegal activities through social media. Additionally, collaborative efforts with Meta and the national police aim to shut down 289 more profiles involved in promoting unlicensed betting.
Operators contravening local laws risk substantial penalties, with fines reaching COP142,350,000, equivalent to 100 times the current monthly minimum wage in Colombia. Coljuegos’ president, Marco Emilio Hincapié, emphasized that these measures are essential to protect the integrity of the nation’s health sector by combating illegal gambling, which misappropriates resources and undermines the state’s commitment to public health.
In November, Betano joined other international operators, raising the count of licensed betting sites in Colombia to 16. However, the industry faces challenges due to the reintroduction of a 19% value-added tax targeting online betting. Its structure, whether applied on turnover or deposits, remains undefined, igniting concerns among gaming operators about the potential negative impact of such taxation on the market, particularly regarding player migration to the black market.
Coljuegos, the regulatory body overseeing gambling in Colombia, seeks to regulate the online betting industry more stringently, particularly against the backdrop of illegal gambling that jeopardizes health funding. The body’s latest initiatives are part of a broader strategy to ensure compliance with local licensing laws while protecting public health resources. The ongoing battle against illegal betting is set against a complex financial landscape—with operators facing heavy taxation that could exacerbate the shift to unregulated markets.
In summary, Coljuegos’ recent actions to block illegal betting sites underline the commitment to safeguarding public health finances through regulated gambling. While the number of licensed operators is modest, the threat posed by unlicensed operations necessitates ongoing vigilance and enforcement. The fiscal landscape for operators may become more challenging with the reintroduction of a value-added tax, which could lead to unintended consequences in the gaming market.
Original Source: igamingbusiness.com
