The Booming Online Gambling Industry of Colombia
Colombia is on track to be the first state in Latin America to have a regulated online gaming industry, with approximations suggesting that the gambling industry could generate nearly $3.3m in additional revenue for the country.
Colombian lawmakers want their regulations to be attractive for online operators because it's a large market with internet coverage peaking all the time and people can play now form a variety of platforms -computers, mobiles or internet cafes.
In the online space, the return in terms of prize payouts to players is very high, typically more than 90%, and all this is an incentive for Colombian hard hitters to participate in a regulated market.
In 2008, plans to allow online gambling, either by the state's monopoly or licensed operators, were overtaken by scandals surrounding the previous regulator ETESA.
Currently, Colombia hosts over 300 websites offering online gambling; while these are currently unregulated, it's likely to change.
The gambling industry needs to reinvent itself, particularly the slot machine parlours; the new generation is not content with just traditional slots, and that's why the online casino industry is so successful.
Coljuegos Allows New Types of Game of Chance
Several Latin American states compared with European regulated markets to have legislation adapted to operators' state, customers, and needs. As such, Colijuegos has published on its platform an important agreement on which article 51-2 of the Online Gambling Law in Colombia is considered to the possibility that operators can market other legalized games of luck and chance.
The online betting market size was worthing around $5 billion and is expected to grow at an annual rate of 11,5% by 2027. The high internet usage and the increasing use of smartphones among players who access online casinos from the comfort of their homes are thriving in the market. What's more, some aspects are contributing to market growth, such as:
- Business sponsorship
- Legalization and cultural approval
- Seamless access to internet gambling
- Celebrity endorsement
Online casinos in Colombia rose in popularity, with most of them presenting players with amazing gaming experiences. The good news is that you can also choose to play a series of games online with some popular ones like blackjack, poker baccarat, slots, ruleta. Colombians are more than happy to think of gambling anywhere and at any time.
But in order to set the prime examples for other countries in Latin America how to pave the way to success, Colombia had to endure a long period of transition. One of the main reasons why the state needed a suitable regulatory framework was underscored by the fact that casino operators were being fined by the state for providing gambling services without permits, despite not having access to a clearly defined licensing procedure.
Fortunately, the Colombian lawmakers assigned to this industry joined forces with the state government – in order to resolve this urgent matter. By the end of 2015, regulations were prepared; they contained the new standards regarding the latest gambling technologies and games that online casinos were required to follow in order to obtain the license.
In 2016 the eGaming was passed, and since the casino operators were able to offer betting and gaming services to the Colombian players, with the fee being set at 15% on high wins for the casino operators with an extra 1% tax paid to Colijuegos.
Ever since the regulatory draft was established, both Colijuegos and the government officials were working towards attracting both local and international operators in order to enrich the betting options for the players. Besides this, they also focused on blocking illegal operators. According to the lawmakers, only last year, 4,332 unlicensed games were removed from the casino market, which represents a 14,8% surge compared to 2017-18. These actions have played a critical role in shielding Columbian players from being scammed by unlawful operators who can considerably damage the industry's growth.
The process of launching the new regulatory framework has been the main factor in creating a successful iGaming industry in Colombia. Also, it's not only the sane regulations that are attracting the operators but the heavy technological infrastructure as well.
Colombian's internet accessibility is sitting at 69%, as mobile connectivity is nearly 199%. In terms of devices, smartphones are dominating this sector as 93% of users prefer them to gain access to the internet. Over the last few years, there were several significant investments in the market, leading to an increased average speed of fixed connection and an average speed of mobile connections.
This only proves the signs that the online gambling market is only moving towards remote forms of gambling; Colijuegos's fee revenues furthermore emphasize this matter for the year ending, with online platforms registering steady growth annually.
With the new adjustments, the online gambling industry's revenue would increase to as much as 50%, according to estimates made by Colijuegos's regulatory impact analysis.
This impact will echo most of all in the horse racing, bingo, virtual sports, and slots sectors, all of which help support the Colombian health system. However, the Colombian gaming industry trade body president states that he disapproves with the assessment put forward by Colijuegos as new measures will bring in a great number of new operators.
Evert Montero Cardenas estimates that it would be almost 20% - about $70,000 million if it falls, yet there are many alternatives that could be taken so that it does not fall so much. He also states that Colijuegos's measure will allow a large part of the sectors to be formalized and that companies will be able to thrive due to the end of the high tax burden established a few months back.
Ultimately, the chance seeks to "expand the base of the sector, modernize the slot parlour sector, promote the professionalization of the gaming industry and combat illegal operation.