Stake is refunding Colombian gamblers the 19% VAT on deposits as a promotional response to new tax regulations effective February 22. This initiative aims to keep players engaged amidst concerns by Asojuegos about the tax’s impact on the gambling market. Stake officials emphasize the need to adapt while ensuring a positive player experience despite increased regulatory burdens.
Stake, an operator in Colombia’s gambling market, is implementing a scheme to refund players 19% value-added tax (VAT) on their deposits. This cashback initiative is part of an effort to mitigate the impact of a new tax that is effective from February 22, which targets every deposit made by players. Stake aims to enhance player experience despite the legislative changes requiring operators to collect VAT from customers.
The VAT requirement, introduced via Decree No 0175, came after prior discussions to eliminate the VAT exemption for online gambling faced delays. This new tax has raised concerns among operators and the gambling community regarding its viability and potential to push players towards illegal platforms. Stake’s step to compensate players demonstrates a commitment to maintaining user satisfaction amidst shifting regulatory obligations.
Diana Otálora, Stake’s general country manager for LatAm, emphasized the operator’s intention to minimize tax-related disruptions for players. “That’s why we have to adapt to the government’s measure regarding the 19% tax and comply with the required deadlines,” she stated, highlighting the operator’s proactive measures for customer retention.
Asojuegos, Colombia’s gambling trade association, previously warned that the tax could harm the market’s viability, potentially driving players to unregulated options. Current estimates suggest that a VAT implementation would significantly reduce player returns, from 93% down to between 71% and 75%. The move is partly intended to address financial needs stemming from violence in the Catatumbo region of Colombia.
Legal experts, such as Juan Camilo Carrasco from Asensi Advogados, have noted that operators require adequate time to adapt systems to comply with tax regulations. Carrasco pointed out challenges operators face in balancing regulatory compliance with operational capabilities, emphasizing the complexities involved in meeting such demands under tight deadlines.
Stake’s approach to refund Colombian players VAT on deposits seeks to alleviate the impact of new tax regulations in the gambling sector. This initiative, combined with concerns from Asojuegos about the long-term effects of VAT on the regulated market, underscores the challenges faced by operators. Stake’s proactive measures aim to retain customer loyalty during a tumultuous regulatory environment, while legal experts advocate for more time to adapt to these changes.
Original Source: igamingbusiness.com
