Colombia’s iGaming market revenue soared to COP10bn in the second quarter, showcasing the sector’s significant role in the nation’s economic growth. National gross domestic product (GDP) experienced a 2.1% increase in Q2, with the country’s National Administrative Department of Statistics (DANE) highlighting Colombian online gambling as a major contributor to this growth.
DANE director Piedad Urdinola emphasized the impact of recent sporting events, such as the Copa América tournament, in driving the rise of online betting. With the Colombia national team making it to the final, the excitement around sports betting was palpable.
President of Colombian gambling regulator Coljuegos, Marco Emilio Hincapié, disclosed that sports betting accounted for 47% of total gross gaming revenue (GGR) nationally, making it the largest contributor to the online betting sector. Localised games like bingo and casino followed closely behind with 33% of GGR, while lottery games AstroSport and Baloto generated 13% and 7% respectively.
Hincapié attributed the gambling sector’s significant contribution to the economy to the advancements in regulation, control of illegal activities, and the growth of online betting during major sporting events like the Copa América and Euro Cup.
Colombia made history as the first country in Latin America to regulate iGaming in 2016, legalizing both online casino and online sports betting through the Egaming Act. Operators are subject to a 15% tax rate on GGR, with varying rates based on return-to-player (RTP) percentages.
The growth of Colombia’s gambling industry has translated into benefits for the health sector, with Hincapié noting a nearly 20% increase in monopoly revenues paid to Coljuegos this year. This has resulted in around COP231.3m being allocated to the health of Colombians through online betting.
Despite the strong performance of the betting sector, Hincapié is focused on driving further innovation to enhance the economy and increase state contributions. He expressed optimism about surpassing projections and reaching a collection of over $1bn by the end of the year.
“We are pleased to see the positive impact of the gambling sector on the country’s economy and health,” Hincapié stated. “The collective efforts across various gambling concepts and modalities have already yielded significant returns, and we aim to continue this trajectory in the coming months.”
