Columbia Looks into Online Gambling RegulationPublished December 30, 2015 by Lee R
Columbia is another South American country in need of new revenue sources, looking at online gambling regulation as a possible solution.
Columbia is looking to regulation for increased revenues.
Formal Regulation Proceedings
In a South American country that is struggling economically, the authority gambling regulator has opened formal proceedings to consider launching a regulated online gambling market.
Coljuegos, the Columbian regulator, posted three drafts on its website for public feedback. The posts outline regulatory and technical requirements for online gambling operations.
In a country where Casino Estrella, Jackpot City Casino and Tivoli Casino head the list of online casinos currently popular with Columbian players, the drafts would open the door for licensed online gambling operators to offer RNG casino games such as slots, roulette, blackjack, baccarat and bingo, as well as poker cash games and tournaments.
The drafts further suggest permissions to green light real and sports betting (real and fantasy), along with fixed-odds, parlay and exchange wagering. The permissions also allow live in-play betting, but stop at horse racing, an indication of a strict stance against horse racing in the country.
Coljuegos has yet to put a cap on the number of licences it would issue, simply requiring all operators to establish a .co domain which would render all other gambling domains illegitimate. The only limits Coljuegos appears to place on operator marketing is the number and types of bonuses they can offer, otherwise allowing operators free reign in marketing.
The suggested tax rate is set at a minimum of 17% on gross gaming revenue, or 15% on betting products that offer a minimum 83% return to players. Coljuegos will also collect an administrative fee from operators of not more than 1%.
The rather comprehensive framework even goes so far as to stipulate the minimum wage required for licensed operators to pay, though it is necessary to further clarify the exact payouts according to monetary exchanges and regulatory wage laws in Columbia.
Columbia's dependence on oil exports looks to be in jeopardy, so the government is moving fast for alternative revenue options. This looks like the most practical and realistic effort for a solution.