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Stake Colombia has launched a cashback promotion to counteract the country’s newly implemented 19% VAT tax on online gambling deposits. The measure, which came into effect on 22 February 2025, was introduced by the Colombian government as part of efforts to raise funds for the ongoing humanitarian crisis in the Catatumbo region.
To prevent players from feeling the impact of the tax, Stake Colombia will reimburse the deducted VAT amount as a cash bonus, ensuring users can continue gambling without additional costs. This initiative comes after the government revoked the VAT exemption for online gambling through emergency legislation (Decree No 0175), following previous failed attempts to implement the tax in December.
Stake’s LatAm General Country Manager, Diana Otálora, reaffirmed the company’s commitment to user experience, stating: “We have to adapt to the government’s measure regarding the 19% tax and comply with the required deadlines. Therefore, we are adopting internal measures so that our customers can continue playing without being affected by this situation.”
The Colombian gambling trade association Asojuegos has strongly opposed the new tax, warning that it could drive players toward illegal betting markets. Asojuegos President Juan Carlos Restrepo cautioned that reducing the player return rate from 93% to around 71%-75% could make the regulated market "unviable" for operators.
Additionally, compliance concerns have arisen, with legal experts pointing out that operators are required to collect VAT immediately, but modifying gambling systems without regulator approval could result in legal breaches. Juan Camilo Carrasco, a partner at Bogotá law firm Asensi Advogados, described the situation as putting operators in a legal bind: “You need to collect these taxes, but you [don’t yet have the capability]. But if you don’t pay taxes, then you commit a crime.”
Stake entered the Colombian market in 2023 through its acquisition of Betfair Colombia. However, its long-term presence in the region could be affected by the tax’s impact on market sustainability. The tax’s revenue is intended to support humanitarian aid, with the UN estimating that over 80,000 people have been displaced in the Catatumbo region due to ongoing armed conflict.
With continued regulatory uncertainty and industry concerns, the success of Stake’s Cashback IVA promotion could determine whether operators can mitigate the effects of Colombia’s evolving gambling tax structure. The situation also raises broader questions about the future of online betting in the country and whether regulatory adjustments will be necessary to maintain a competitive, legal market.
Sources: Gambling Insider, IGB
