Colombia Blocks 10K Illegal Gaming Websites and Social Media Accounts

Colombia’s gambling regulator, Coljuegos, announced that it has blocked a staggering 10,000 unlicensed gambling websites and social media accounts promoting illegal games of chance. The authority reiterated its stance on offshore entities, vowing to crack down on illicit products.

Coljuegos Says 10,000 Entities Have Been Blocked

The Coljuegos said that the 10,000 portals it blocked included not only online casinos but also digital bingo halls, unregulated sportsbooks and social media profiles that offered raffles, promotions, and other luck games.

The Colombian regulator added that it is currently spearheading some 35 administrative sanctioning processes against illegal gambling promoters, which have included influencers and online organizations promoting raffles across social media.

As part of its latest ban wave, the Coljuegos asked the Cybernetic Police Center and the Meta company to block some 289 social media profiles on Facebook and Instagram. The entity argued that the profiles in question have violated the Colombian rules by carrying out raffles, bingo games and/or promoting similar products and illegal online casinos.

Speaking of violations, the Coljuegos reminded the public that the unauthorized operation of games of chance is considered a crime, as outlined in article 312 of the country’s criminal code. Operators of such products risk fines of 100 times the legal monthly minimal wage in Colombia.

Only Licensed Companies Can Provide Online Gaming

Marco Emilio Hincapié, Coljuegos’ president, commented on the matter, emphasizing the regulator’s continued successes in cracking down on illegal gambling. He said that the authority’s latest ban wave was its biggest one yet, resulting in the most blocked portals in the history of the Coljuegos.

Hincapié emphasized that Coljuegos’ ban waves are consistent with the instructions of President Gustavo Petro to crack down on fraud and protect the health and funds of Colombian citizens.

Coljuegos reminded players that Colombia currently allows only 16 online operators. Legal companies are required to obtain a license and pay an annual licensing fee. This money is then distributed by Coljuegos to a variety of causes.

By operating illegally, online companies deprive the LATAM country of licensing fees and tax money. In addition to that, they channel players’ money outside of the country and expose consumers to risks of harm.

Colombia Enforces VAT on iGaming

In other news, the Colombian government just put a Value Added Tax (VAT) on online gambling into action. The new measure seeks to raise urgent funds to deal with the humanitarian crisis in Catatumbo where violence has forced more than 39,000 people to leave their homes.

This is technically not a new tax but a removal of a benefit given in 2016, which had allowed online betting companies skip VAT payments.

The government believes that this tax could raise up to $500 million a year. However, some people were still wondering about its long-term economic impact.