How the Colombian Gambling Market Became a Milestone in the Region
The gambling industry in Colombia represented a watershed for the market in the region, thanks to Clijuegos, the state's gaming authority, the regulatory process's evolution, which started with an interconnection system for slot machines and peaked with Columbia's big break in 2016, the application of Agreement 4, which legalizes online gambling.
The Agreement details the requirements that casino operators and websites must adhere to, which include a series of legal, technical and financial conditions. Since 2016, gambling has constantly been adapting to the new circumstances, and the gaming opportunities have expanded, as Clijuegos has always wanted to stay at the forefront of the industry. Its proudest innovation is the addition of live casinos.
This approach brought new specific requirements, such as the certification of the technical conditions established under the new regulations, a minimum return of 83 percent of the bets and a live broadcast streamed from a land-based casino or a studio outside or within the Columbian territory.
This also led to new growth opportunities for content providers. Through the new regulations' updates and enhancement, the gambling consultants are currently including new games pushing content supplies, undergo certification procedures concerning their products, and their potential integrations with licensed operators. Today Columbia proudly sticks to its 16 licensed operators while the government has recently issued a Decree which normalizes temporary games and is effective from 2020 to 2021. The new legislation allows for two opportunities:
retail scratches offered by lotteries and betting shops, and electronic scratches which can be offered online. The rules for implementing these activities are still pending, however, given the health crisis, we are currently experiencing, these modalities provide for a great alternative.
What's more, the Colombian administration has included within the scope of Decree 808 the bingo vertical for operators for this type of betting. Odds are now offered through delivery, retail shops and weekly or monthly draws, which cannot be sold or operated online.
Colombia Knows How to Adapt and Innovate in Times of Crisis
When compared to other Latin American countries, the Columbian gambling industry seems pretty underdeveloped. However, the challenges generated by the pandemic led companies and markets to reinvent themselves. And this was precisely what Colombia did. Recent jurisdictions are now recognizing the potential to regulate the gambling industry in its online environment.
An expert overview of Casino Colbet says that Columbian hard hitters who love sports games can do so over the internet in the comfort of their homes using their computer or phones. Casino enthusiasts can only participate in online sports betting on international sites.
Colombians love predicting the results of sports activity and placing a wager on their or an outcome. They simply appreciate the privacy and safety of online sports betting.
On the other hand, horse racing has increasingly become a favourite gambling game in Colombia, attracting many wagers with many exchanges in the iGaming market.
- Online Gambling in Colombia
The government officials have not entirely policed Colombian gaming on the internet. But that didn't stop Colombians from gambling on foreign websites freely. Most local online gambling service providers do not have a legal environment to operate.
- Online Poker
Thanks to Codere's influence in the private gaming sector, the current legislature can't restrict Columbians from playing online poker on international sites. There are online poker tables that offer Omaha, Seven-card stud, and razz, among other game types.
Gambling is either in cash forms or tournaments, and players can only play against each other after paying the gambling fees. There is no playing against the house.
- Online casinos
Popular casino games like blackjack, roulette and baccarat are some of the most appreciated on gambling websites like Collbelt. You can play against the house, which makes you money when the odds are in your favour. The odds are even higher now since the government has completely normalized online gambling to improve the country's economy.
Meanwhile, the new measures only block websites that do not follow proper licensing procedures. The Columbian eGaming Act contains a set of rules that regulate only the operations of online cash gaming activities like Codere, casino games, including poker, and sports betting. Instead of having to attain separate licenses for every type of gambling, operators can opt for certificates that cover all activities.
What's more, to operate legally, Colombian operators have to pay a licensing tax of around $200,00 a year and a 15% tax on gross gaming revenues.
Growing markets and future challenges
With a population reaching almost 50 million and an expanding economy that is fast becoming a hotbed for gambling activities, Columbia's major challenges are to modernize the existing system of releasing gambling licenses to normalize the online gambling industry. The new draft presented in 2016 outlined the new regulations for online gambling, but there's still a lot to tackle in the meantime. The draft, however, should help Colombian players develop a sense of trust. Prior to the government taking control of Colombia's gambling activities, the system was rife with illegal gaming activity and corruption. The movement hopes to eliminate illicit activities and bribery, thereby creating realistic regulations that fully increase revenues and reflect modern gambling trends.
Such positive changes already attract gambling companies to set up operators in the country and grow revenues through licenses and taxes. The Colombian government has already granted an iGaming license to locally owned companies. Colombia's normalized online gambling market closed strongly in 2019, with approximately 1.7m new betters registered in 2018. The country has consistently persevered through years of turmoil to become a good example for South American countries to follow in terms of gambling legislation and improved revenue.
The online gambling market in Latin America is about to be changed, and Colombian's new law is the catalyst.