Codere Online confirms pause on new investment in Colombia over tax changes
Industry associations have described the VAT on online gaming deposits as an “unsustainable burden”.
Colombia.- Codere Online has reiterated its intention to suspend any future investments in Colombia due to the taxes framework imposed on regulated online gambling this year. The announcement during its Q3 results call comes after finance minister Germán Ávila confirmed in September that the 19 per cent VAT levied on online gaming deposits would be made permanent.
Speaking to investors Moshe Edree, executive vice president of Codere Online, said: “We are not going to invest any further unless the tax changes. Our three- and five-year plans do not include Colombia.” The operator had made similar comments during its Q2 call.
The new VAT on online gaming deposits was introduced by president Gustavo Petro’s progressive administration in February, initially as a temporary measure intended to raise emergency funds for the province of Catatumbo, where a conflict between the National Liberation Army (ELN) and dissident factions of the Revolutionary Armed Forces of Colombia (FARC) has led to a humanitarian crisis.
Trade groups have warned that the new tax is damaging the regulated online gambling market in Colombia. In 2016, Colombia became the country became the first in Latin America to introduce regulated online gambling, and it has long been seen as one of the region’s most dynamic markets.
However, Evert Montero Cárdenas, president of the trade body Fecoljuegos, has described the new VAT as “an unsustainable burden”, saying that operators had been forced to grant bonuses to absorb the VAT impact and avoid passing it on to users.
Data from the regulator Coljuegos also shows a decline in contributions to healthcare from gambling in Colombia, down by 46.6 per cent year-on-year from COP 43.3bn (around €10m) in July 2024 to 23.1bn in July 2025.
Codere Online says net gaming revenue from the markets it defines as “other” (Colombia, Buenos Aires and Panama), is down by almost a third due to a drop of €1.4m in revenue from Colombia despite deposits remaining steady.
Codere’s CFO Óscar Iglesias is stepping down this month, with Marcus Arildsson to take over as Group CFO. Meanwhile, Codere Online has launched its .it site, marking its entry into the Italian regulated online gambling market following the re-licensing process. The Codere name already had a presence in Italy thanks to the Madrid-listed Grupo Codere’s bingo and slot operations.
The expansion into the online space is Codere’s first in Europe outside of Spain. The revamped framework for online gambling in Italy went live on November 12 with 52 newly approved licences, leading to the disappearance of many skin sites.
