Colombia’s attempt to raise fast revenue from online gambling has hit a constitutional wall. In an 8-0 decision issued on April 15, the Constitutional Court struck down Decree 1474 of 2025. That measure had applied a 19% VAT to online betting under emergency powers.
The decision is also significant for reasons beyond taxes. It also undercuts the government’s attempt to use emergency decrees to reshape gambling taxation after its inability to receive broader fiscal backing through Congress.
Refund Relief Comes With Clear Limits
The ruling mandates DIAN, Colombia’s tax authority, to develop a system for refunding the money collected between December 30, 2025 and January 28, 2026. That provides an opportunity for repayment claims from operators and other registered businesses that can show they incurred the cost directly.
Nonetheless, the headline exposure may look greater than the actual settlement. According to analysts, the total liability incurred by the government is around COP 25bn ($6.9m). However, not all of it can be retrieved. Colombia’s system uses the claims procedure, meaning businesses will have to justify their eligibility first.
The court created a significant exception, though. The ruling did not unwind tax benefits already consolidated while the decree was in force. That ensures protection for a larger revenue pool tied to taxpayers who voluntarily fulfilled their outstanding obligations under discounted terms.
Congress, Not Emergency Powers
The case was not only the betting tax, but also the legal basis used to impose it. According to the court, Decree 1474 could not stand after the underlying emergency decree had already been struck down. That cut off this emergency route for the measure.
This decision follows the court’s earlier move in late January to provisionally suspend Decree 1390, the main emergency decree underlying the fiscal package. As legal commentators noted at the time, this was an unusually rare step in Colombia’s constitutional review process. The final ruling has validated the notion that the enabling emergency decree could not sustain the fiscal measures.
The ruling may also mark a political setback for President Gustavo Petro. His government continues to look for ways to close a fiscal gap estimated at more than 16 trillion pesos.
The Revenue Fight Will Continue
Operators may welcome the judgment, but they should not mistake it for a policy retreat. The state still needs revenue, and gambling remains an obvious target. In March 2026, the government already tried a different route through Decree 240. That introduced a 16% national consumption tax for exclusively online games of chance under a separate emergency framework.
That measure could become the next legal battle for the industry. The Colombian government may continue trying to squeeze revenues from gambling operations. Yet, if it seeks to maintain that tax, it may have to rely on Congress.
