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Colombian Court Pauses Coljuegos’ Advertising Restrictions on Online Gambling

Colombian Court Pauses Coljuegos’ Advertising Restrictions on Online Gambling
Colombian Court Pauses Coljuegos' Advertising Restrictions on Online Gambling
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Colombia’s top administrative court has put a stop, at least temporarily, to key advertising rules imposed by Coljuegos on internet gaming operators. The 2023 resolutionβ€”which set stringent caps on advertising spending among other thingsβ€”has been suspended. The court found that these financial limits were an unapproved interference with economic freedom, stating Coljuegos had overextended its reach without statutory authority. Still, this decision stems from an ongoing judicial review initiated by private claimants Juan Carlos Calvo Ospina and Juan Pablo Cardona GonzΓ‘lez, who argue the resolution is overreaching.

Suspended Provisions Target Coljuegos’ Authority

The court’s suspension halts four major provisions of the 2023 gambling regulation. Still, these included reporting requirements forcing operators to submit annual advertising plans and quarterly recordsβ€”seen as an overreach without proper legal backing. Still, the court also paused sanctions preventing contracts with companies using unapproved trademarks or tied to illegal activities. Notably, the court took issue with fines and potential contract terminations for violations, and the demand for concessionaires to obtain prior approval before selling company shares. But not every Coljuegos mandate has been shelved. Rules ensuring only authorized operators are advertised remain in place, along with statutory powers to combat unauthorized gaming providers.

Economic Freedoms and Commercial Confidentiality

Key to the court’s decision are three constitutional principles. First, it highlighted that only legislative bodies can impose measures affecting economic freedoms or the state’s monopoly revenue generation. Second, the establishment of offenses and penalties falls squarely within government policy makers’ jurisdiction. Protecting commercial confidentiality was the third principle, with the court noting that plans, invoices, and contracts represent sensitive business information, beyond what Coljuegos can demand without clear legal footing. Coljuegos’ immediate authority to impose advertising caps and other sanctions on online gaming operators has been curtailed significantly. Under President Gustavo Petro, the sector has been a financial lifeline, with more than COP4 trillion ($970 million) funneled into healthcare since 2022. The online operators, however, are grappling with new taxes like a 19% VAT introduced on player deposits in 2025 and a 16% levy to aid with flood recovery and the 2026 budget.

Implications for Colombia’s Online Gaming market

This isn’t the end of the line for Coljuegos’ advertising restrictions. The Council of State will provide a final judgment on the annulment petition eventually. Should the court decide to annul the contested provisions outright, Coljuegos would need explicit legislative backing to reinstate any similar measures. Industry insiders know that this battle has been simmering for some time, and operators are keenly watching how this plays out. The timing is interesting, coming ahead of an annual regulatory review, which could steer the future course for Colombia’s burgeoning online gambling sector.

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