President Gustavo Petro has introduced a special tax, and online gambling operators in Colombia are preparing for it.
The government has introduced the proposed temporary value-added tax by decree under the president’s emergency powers. It will charge 19% on player deposits.
In late January, the government declared a state of emergency. This decision came in response to outbreaks of violence near the Colombia-Venezuela border.
New-York listed RSI or Rush Street Interactive is one of the leading online operators in Colombia. The government expects the temporary tax to remain in place until the end of the year. Its continuation depends on the Constitutional Court of Colombia approving the emergency decree.
The Colombian operations of RSI comprise an estimate of 13.3 per cent of the overall revenue of the company.
In a statement, RSI said it will continue analyzing the Decree’s potential impact on its financial statements and operations.
RSI stated that the constitutionality, timing, and impact of the Decree remain uncertain. Any assessment of its effects on the company is still speculative. However, the company is preparing actions to reduce operating and marketing expenses to help offset potential revenue impacts.
Colombia’s regulated gambling market generated just over 1 billion pesos in state revenue in 2024 to fund healthcare. Online gambling contributed 42% of the total.
Shares of Rush Street Interactive Inc. (NYSE: RSI) recently fell 4.07%, closing at $16.02 per share in New York.
