di David Del Bianco. Over the past few years, Colombia has established itself as one of the most relevant and mature online gaming markets in Latin America. As the first country in the region to adopt a comprehensive regulatory framework for online gambling, it has frequently served as a benchmark for other Latin American regulators. Following a period marked by significant regulatory and fiscal interventions, the sector is now entering a transition phase in which the debate is gradually shifting from addressing current challenges to defining future opportunities. Against this backdrop, it is particularly interesting to explore the future evolution of the Colombian market and how operators and authorities may address the challenges arising from technological innovation and the emergence of new business models.
Below is an exclusive interview conducted for JAMMA with Juan Camilo Carrasco, Managing Partner at Sora Lawyers, a law firm specialising in gaming, betting, and digital technology regulation across Latin America. The firm advises national and international operators on licensing, compliance, corporate matters, litigation, and regulatory affairs.
1. What is the current state of the online gambling market in Colombia, and what are the main regulatory challenges facing the industry today?
The past eighteen months have been particularly challenging for Colombia’s online gambling industry. The sector has had to navigate restrictive fiscal and regulatory measures, including the introduction of VAT—which was subsequently declared unconstitutional—as well as advertising restrictions introduced through regulations issued by the Colombian gaming authority in 2023.
Despite these challenges, the regulated market is now showing signs of recovery. The removal of VAT and the partial suspension, by the Council of State, of certain advertising restrictions have helped restore operating margins, flexibility, and competitiveness. In addition, a new political landscape has emerged, with an incoming administration perceived as more market-friendly, creating expectations of greater openness toward new operators and investment.
Among the key regulatory challenges, I would highlight three. Firstly, combating illegal gambling, which remains one of the industry’s most significant concerns. Secondly, the need to regulate new operating models and business structures that do not yet fit neatly within the current regulatory framework. Finally, the industry requires a more innovative and flexible regulatory approach capable of facilitating licences for new business models and gaming verticals in Colombia, preventing them from remaining in regulatory grey areas.
2. From your perspective, what legislative or regulatory changes can we expect over the next two or three years, and how should operators prepare for this new scenario?
Under an optimistic scenario, and considering the arrival of a new administration that has expressed a more market-friendly vision, the next two to three years could provide Colombia with a valuable opportunity to reclaim its position as one of the most innovative gaming regulators in the region.
One of the first topics likely to enter the regulatory debate is the emergence of prediction markets. Opening a discussion on their regulation within the gambling industry would provide greater legal certainty for these models while potentially avoiding the type of legal disputes currently seen in the United States, where there is ongoing tension between those who classify such products as belonging to the financial sector and those who consider them part of the gaming industry.
Another important issue will be the evolution of blockchain within the sector. This extends beyond the possibility of incorporating crypto-assets as a payment method and includes blockchain gaming models, where players can genuinely own digital assets acquired within games, trade them, or monetise them. These developments are transforming the global digital entertainment industry and represent a compelling opportunity for Colombia’s regulated market to continue evolving.
Likewise, models such as social sweepstakes, social tournaments, and other alternatives that incorporate wagering elements and are gaining international relevance will likely become part of the regulatory discussion. Establishing clear licensing rules for these models would attract innovation, provide greater legal certainty for operators, and prevent such products from being left in regulatory grey zones.
It would also be appropriate to revisit the treatment of skill games and other emerging verticals created through technological advancement. Regulation could introduce mechanisms similar to a regulatory sandbox, allowing these models to be assessed on a case-by-case basis and enabling new gaming verticals to be integrated more rapidly into the offerings of licensed operators.
At the same time, the major challenge will continue to be the fight against illegal gambling. Beyond strengthening existing tools, regulators, operators, and technology experts will need to work together to develop new strategies capable of improving blocking mechanisms, enhancing supervisory capabilities, and enabling faster responses to the constant evolution of illegal offerings.
That said, it is important to maintain a realistic perspective. Historically, the gambling industry has rarely occupied a priority position on legislative agendas. For this reason, rather than expecting immediate reforms, the real challenge will be to continue enriching the discussion with technical proposals that support the development of a modern, flexible regulatory framework able to keep pace with the speed at which the industry evolves.
Ultimately, the best strategy for operators is to stay ahead of these trends. Monitoring how such models evolve in other jurisdictions, understanding the regulatory issues they raise, and preparing in advance will allow operators to implement them quickly, safely, and compliantly when Colombia decides to open its market to these developments. In such a rapidly evolving industry, the ability to anticipate change often translates into a competitive advantage.
3. How are authorities addressing issues such as responsible gambling, illegal gambling, and consumer protection? Do you believe the current measures are sufficient?
In terms of responsible gambling, Colombia has a relatively robust regulatory framework. Self-exclusion mechanisms are available to players, advertising is subject to information requirements, and specific rules aim to prevent problematic gambling behaviour. In addition, discussions are beginning to emerge around the use of technological tools, including artificial intelligence, to identify risk patterns and trigger preventive alerts relating to potentially harmful gambling behaviour.
Regarding the fight against illegal gambling, the main enforcement mechanism has been the blocking of unauthorised websites. According to recent figures published by the Colombian regulator, more than 46,000 illegal websites have been blocked, reflecting a significant effort. However, the phenomenon evolves very rapidly and requires increasingly sophisticated tools.
Consumer protection remains the area with the greatest room for improvement. Many users still lack sufficient information to distinguish between licensed and unlicensed operators and do not fully understand the risks associated with gambling on unregulated platforms, including the absence of guarantees regarding the payment of winnings, weaker personal data protection, increased fraud risks, and the lack of effective complaint mechanisms.
For this reason, while the current measures are important, they are not sufficient. The next step should combine greater consumer education, increased investment in technology, and more effective strategies against illegal operators, helping users understand that gambling with licensed operators is not only a legal requirement but also an important safeguard for their own protection.
4. If an international company wanted to enter the Colombian market today, what would be the key legal and compliance considerations for operating successfully and sustainably?
Colombia was the first country in Latin America to establish a comprehensive regulatory framework for online gambling, and as a result, it now has one of the most mature regulatory environments in the region. For international operators, this represents a significant advantage, as the rules are clear, the licensing process is well defined, and there is a predictable legal pathway to market entry.
Broadly speaking, a company wishing to operate in Colombia must be prepared to comply with four major categories of requirements. The first involves legal considerations related to establishing the corporate structure in Colombia. The second concerns technical requirements, including ensuring that the platform complies with the technology and security standards established by the regulator. The third relates to financial requirements, including demonstrating sufficient financial capacity to implement the project, providing the guarantees required under the concession contract, and maintaining mechanisms to secure the payment of winnings. Finally, there is a fourth category focused on compliance obligations, including anti-money laundering controls, customer due diligence requirements, responsible gambling measures, and other industry-specific regulatory obligations.
Given the highly regulated nature of the industry, obtaining specialised legal and regulatory advice from the earliest stages of the project is strongly recommended. This not only facilitates the licensing process but also helps ensure that an international business model is properly adapted to the specific requirements of the Colombian regulatory framework.
Ultimately, Colombia remains a highly attractive destination for foreign investment. While regulatory requirements are rigorous, the country also offers legal certainty, clear rules, and a transparent licensing process—factors that provide confidence to operators seeking to establish a sustainable long-term presence in the market.
Looking ahead, David Del Bianco concludes that Colombia appears well positioned to further strengthen its role as a leading market in the region. The ability to balance innovation, regulatory certainty, and consumer protection will be critical in attracting new investment and supporting the sustainable growth of the sector. In an industry that evolves at an extraordinary pace, those jurisdictions capable of adapting their regulatory frameworks to technological developments and changing consumer behaviours will be best placed to maintain competitiveness and leadership over the long term.
*David Del Bianco, Regulatory Compliance Manager and MLRO, specialising in the online gambling industry with a particular focus on regulated Latin American markets.
