Colombia’s temporary 19 per cent VAT on player deposits for online gambling has been met with criticism by a Colombian gambling trade association.
Amid a state of emergency involving rebel violence in the Catatumbo region, the Colombian government has introduced the temporary measure and scrapped the previous VAT exemption on operators.
It is hoped the money will help the government deal with the crisis.
However, Fecoljuegos said a decision has been taken “without considering the functioning of the sector or the technical challenges involved in its implementation.”
The trade association also voiced concerns about the lack of transition period, with operators given five days to move in line with the decree.
“Without a transition period, operators will face serious difficulties in complying with the new requirements,” Fecoljuegos said (via LatinPyme.)
“It is essential to find a balance between tax collection and the maintenance of an industry that generates employment, innovation and essential resources for the state.
“We urge the government to consider a transition that guarantees the stability of the sector and avoids negative impacts on the economy
“Without a transition period, operators will face serious difficulties in complying with the new requirements
Rush Street Interactive (RSI), which operates the RushBet brand in Colombia, said it is “evaluating” the decree’s potential impacts on its operations there, which account for 13.3 per cent of its total revenue.
“While the constitutionality, timing and impact of the decree is unknown at this time, and any assessment of the impact to the company of the various possible decree scenarios remains speculative, the company is actively anticipating certain actions that may, among other things, help reduce operating and marketing expenses to partially offset potential future impacts on the company’s revenue,” RSI said.
“Despite the potential short-term challenges posed by the decree, the company believes that its operational expertise, experienced management team and local resources will enable it to continue to achieve long-term growth in Colombia and its other Latin American markets.”
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