Colombia's Gaming Regulator Bans Illegal Online Casinos and Sports Betting Websites
In a historic move, Colombia's gaming regulator, Coljuegos, has launched its most extensive crackdown on illegal betting operations, blocking 10,000 websites and social media profiles that were offering unauthorized gaming services. The regulator's initiative aims to protect the country’s healthcare budget, which relies on tax revenue from licensed gaming operators. In addition, Coljuegos has opened investigations into companies and influencers promoting illegal gambling on social media platforms. This aggressive approach underscores the administration's commitment to combating unlawful operators and securing critical funding for public welfare programs.
Blocking of Illegal Websites and Social Media Profiles
Scope of Crackdown:
Coljuegos has blocked 10,000 websites offering unauthorized gambling services. These platforms included virtual casinos, bingo halls, and sports betting operators that were illegally targeting Colombian users with raffles and betting opportunities.
Licensing Violation:
The websites were found to be operating without a valid local license, which is a mandatory requirement under Colombian law. By avoiding license fees, these platforms were not contributing to the country's healthcare budget, a key area that benefits from gaming industry tax revenues.
Social Media Enforcement:
Coljuegos extended its crackdown to social media platforms by identifying 289 profiles allegedly promoting illegal gambling activities. The regulator has sought assistance from Meta and the national police's cybercrime division to block these accounts on platforms such as Facebook and Instagram.
Impact on Colombia’s Healthcare System
Financial Contributions from Licensed Operators:
In 2024, Colombia's 16 licensed online betting operators collectively paid COP 435.2 billion (approximately $104.5 million) in licensing fees. This revenue was fully reinvested in the country’s healthcare system, making licensed gaming a vital source of public funding.
Protecting Healthcare Resources:
Coljuegos emphasized that illegal operators undermine the nation’s healthcare system by evading taxes and fees. Blocking these unlicensed platforms helps secure the financial stability of healthcare services for millions of Colombians.
Investigations into Influencers and Promoters
Legal Actions:
Coljuegos has initiated 35 investigations into influencers and companies suspected of promoting unauthorized gaming sites. These entities allegedly used social media to facilitate illegal raffles, events, and gambling promotions, thereby violating Colombian regulations.
Cybersecurity Collaboration:
The regulator has sought the support of Colombia’s cyber police unit to strengthen its enforcement measures. Cooperation with tech companies like Meta is expected to enhance the effectiveness of the crackdown on illegal online gambling promotions.
Legal Framework for Gambling Operations
Criminal Penalties:
Under Article 312 of Colombia’s Criminal Code, running illegal games of chance is a serious criminal offense. Violators face fines of up to 100 times the legal monthly minimum wage, along with other potential legal consequences.
Government Directive:
Coljuegos’ efforts align with the instructions of President Gustavo Petro, who has prioritized attacking illegality in the gambling industry. The regulator's leadership emphasized their commitment to protecting national resources, stating, “We are complying with the instructions of President Gustavo Petro: to attack illegality in the industry and protect resources for the health of Colombians.”
History of Coljuegos' Enforcement Actions
Previous Efforts:
Coljuegos has a long-standing commitment to eliminating illegal gaming operations. In September 2024, the regulator destroyed $445 million worth of confiscated illegal gaming equipment. This move demonstrated Coljuegos' determination to curb unregulated gambling activities across the country.
Ongoing Initiatives:
The latest crackdown builds upon years of enforcement campaigns aimed at reducing the presence of unauthorized gaming operators. Coljuegos continues to collaborate with various stakeholders, including law enforcement agencies and technology firms, to enhance regulatory oversight in the gaming industry.
Future Outlook for Colombia's Gaming Industry
Growth of Licensed Operators:
With stricter enforcement of gaming regulations, licensed operators are expected to gain a stronger foothold in Colombia’s gaming market. This may encourage further investments in legal gaming platforms, ultimately increasing tax revenue for healthcare and other public services.
Technological Advancements in Monitoring:
Coljuegos is likely to continue leveraging cybersecurity tools and data analytics to detect and block illegal platforms more efficiently. Collaborations with international technology companies may also enhance regulatory capabilities in the face of evolving online threats.