Stake Colombia to Cover 19% VAT for Its Players

Starting with February 19, Stake Colombia will be covering the 19% VAT on all cash deposits, taking the tax burden off the players and absorbing the loss. The betting site will cover the difference by crediting money to users' accounts after a successful deposit.

The money will be credited back to players via the special Cashback IVA promotion, which awards a bonus that equals the 19% VAT amount. So, for example, a customer depositing 100,000 Colombian pesos, the amount of 15,999 is withheld as per the government regulation. However, Stake will then credit the player's account with the cash bonus for that same amount so they can proceed to use the entirety of their deposit.

Unwavering Commitment to Players

The latest move by Stake Colombia demonstrates the operator's strong commitment to providing high levels of user satisfaction. Although the Colombian government put the VAT obligation on the player with its Decree 0175, the site will willingly take over the financial burden, ensuring the bettors' experience remains unchanged.

Commenting on the decisions, Diana Otálora, the company's General Country Manager in LatAm, said the following:

At Stake Colombia, our users are our top priority, and that's why we have to adapt to the government's measure regarding the 19% tax and comply with the required deadlines. Therefore, we are adopting internal measures so that our customers can continue playing without being affected by this situation.

Major Change Affecting iGaming in the Country

Stake Colombia is just one of many gaming operators that had to comply with the latest legislation. Colombia's Decree 0175 is a temporary measure that was issued on February 14 and came into effect a week later, adding 19% VAT to all gambling deposits. The measure, which should last until December 2025, aims to raise $3 billion and use these funds to help deal with the humanitarian crisis in the Catatumbo region.

Tens of thousands of people had to leave Catatumbo after a wave of violence that escalated in January of this year. Many more remain trapped inside their homes, requiring immediate assistance.

Seeking to address the crisis, the Colombian government has introduced new regulations, one of which is the 19% VAT on all gambling site deposits. While the tax is deducted directly from players' funds, sites can take over the financial burden, and that's exactly what Stake Colombia is doing. With this decision, the operator remains compliant with relevant laws while ensuring their users remain unaffected.

This is good news for all bettors in the country and we can only hope that other operators will follow suit.