Codere Online has confirmed it will halt future investments in Colombia, citing the tax framework introduced on regulated online gambling. This decision was announced during the company’s Q3 earnings call, following finance minister Germán Ávila’s September confirmation that the 19% VAT on online gaming deposits would become a permanent measure.
This tax, originally introduced in February by President Gustavo Petro’s administration, was intended as a temporary solution to generate emergency funds for Catatumbo, an area afflicted by conflict between the National Liberation Army (ELN) and dissident FARC factions. However, the permanence of this tax has led to significant industry backlash.
Moshe Edree, Codere Online’s executive vice president, emphasized the company’s stance during the investor call stating, “We are not going to invest any further unless the tax changes. Our three- and five-year plans do not include Colombia.” This sentiment echoes Codere’s previous statements from their Q2 call, highlighting the consistent position against the current tax environment.
Industry associations and trade groups have criticized the new VAT, describing it as an “unsustainable burden” on the online gambling market. Colombia was a trailblazer in Latin America, being the first country to regulate online gambling in 2016. This regulation transformed the nation into a vibrant market, attracting significant investment and growth in the sector. However, recent tax developments have cast a shadow over this progress.
Evert Montero Cárdenas, president of Fecoljuegos, highlighted the adverse effects of the VAT. Operators have been compelled to issue bonuses to mitigate the tax’s impact, rather than transferring the cost to consumers. This strategy aims to maintain user engagement but adds financial strain on the operators.
Data from Colombia’s regulator, Coljuegos, illustrates the downturn in fiscal contributions from gambling, particularly to healthcare funding. From July 2024 to July 2025, contributions plummeted by 46.6%, descending from COP 43.3 billion to COP 23.1 billion. Such a substantial drop raises concerns about the long-term viability and social contributions of the gambling sector under the current tax regime.
Codere Online highlighted a notable decline in net gaming revenue from markets categorized under “other,” which includes Colombia, Buenos Aires, and Panama. The company reported a near one-third decrease in revenue due to a €1.4 million dip from Colombia, despite stable deposit levels. This underscores the financial impact the tax has imposed on the company’s operations within the region.
As Codere navigates these challenges, internal changes are also underway. Óscar Iglesias, the company’s CFO, is stepping down, with Marcus Arildsson set to assume the role. This transition in leadership occurs alongside Codere Online’s strategic expansion into Italy’s regulated online gambling market. The company has launched its .it site, a notable move as Codere extends its presence in Europe beyond Spain. Italy’s recent re-licensing process, effective from November 12, introduced 52 new licenses, resulting in the closure of several skin sites, and marking a significant reshaping of the market landscape.
While Codere adapts to the Italian market, the Colombian tax situation represents a significant challenge for the company. The decision to pause investments reflects a broader concern within the industry about the sustainability and attractiveness of Colombia as a market for international operators.
However, amid these challenges, some analysts suggest that the regulatory environment could stabilize in the future, creating new opportunities. They argue that the Colombian government, recognizing the industry’s contribution to the economy, might reconsider its tax strategy to foster a more conducive environment for growth. This perspective offers a glimmer of hope for operators like Codere, who are eager to see more favorable conditions that align with their strategic objectives.
In conclusion, Codere Online’s decision to suspend investments in Colombia exemplifies the tension between regulatory policies and market growth potential. As the company eyes expansion opportunities in Europe, the future of its operations in Colombia remains uncertain, pending potential policy shifts that could redefine the tax landscape. For now, the company remains cautious, prioritizing investments in regions with more predictable and supportive regulatory frameworks.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
