TLDR
- Colombia’s online gambling market revenue reached COP10bn (£1.9bn/€2.2bn/$2.5bn) in Q2 2024.
- The National Administrative Department of Statistics (DANE) credited online gambling as a key component of Colombia’s 2.1% GDP growth in Q2.
- Sports betting accounted for 47% of total gross gaming revenue (GGR) nationally.
- Online gaming has seen a nearly 20% increase in monopoly revenues paid to Coljuegos, the gambling regulator.
- The growth is attributed to recent sporting events like the Copa América, where Colombia reached the final.
Colombia’s online gambling industry has emerged as a significant contributor to the country’s economic growth in the second quarter of 2024, according to recent reports from the National Administrative Department of Statistics (DANE) and the national gambling regulator, Coljuegos.
DANE reported that Colombia’s gross domestic product (GDP) grew by 2.1% in Q2, with online gambling cited as one of the key drivers of this growth. The sector’s revenue reached COP10bn (approximately £1.9bn/€2.2bn/$2.5bn) during this period, highlighting its increasing importance in the national economy.
Piedad Urdinola, director of DANE, emphasized the role of entertainment activities, particularly online gambling, in the country’s economic expansion.
“The main drivers of growth are artistic and entertainment activities, including online gambling, as they are associated with the sporting activities we have had in recent months and which give way to online betting,” Urdinola stated.
The surge in online gambling activity is largely attributed to recent major sporting events, notably the Copa América tournament, where the Colombian national team reached the final.
This event, along with others like the Euro Cup, significantly boosted sports betting, which accounted for 47% of the total gross gaming revenue (GGR) nationally.
Marco Emilio Hincapié, president of Coljuegos, provided a breakdown of the sector’s performance. After sports betting, localized games such as bingo and casino were the second-largest contributors, accounting for 33% of GGR. Lottery games AstroSport and Baloto generated 13% and 7% respectively.
Hincapié highlighted the sector’s growth, noting,
“This year, online gaming has seen an increase of nearly 20% in monopoly revenues paid to Coljuegos. This means that, to date, online betting has transferred around COP231.3bn (£44.2m) to the health of Colombians.”
This increase underscores the positive impact of the gambling industry on Colombia’s healthcare sector, a key beneficiary of gambling revenues.
Colombia’s success in the online gambling market can be traced back to its pioneering role in Latin America. In 2016, Colombia became the first country in the region to regulate online gaming through the Egaming Act, which legalized both online casino and sports betting.
The tax rate for operators stands at 15% of GGR for those with a return-to-player (RTP) rate of 83% of stakes, while operators with an RTP over 83% pay 17% of GGR.
The regulatory framework and recent growth have positioned Colombia’s gambling industry as a significant contributor to the national economy. Hincapié revealed that when considering all gambling concepts and modalities, the sector has already collected more than COP581bn (£111.1m) to date.
Looking ahead, Coljuegos is setting ambitious goals for the remainder of the year.
“We hope that, in the remainder of the year, we can exceed our own projections and reach a collection of more than $1bn,” Hincapié stated.
He also emphasized the regulator’s commitment to continued innovation and regulation to ensure that all types of games generate more jobs, stimulate the economy, and provide valuable resources for health and scientific research.
The success of Colombia’s online gambling sector serves as a model for other countries in Latin America and beyond. It demonstrates how a well-regulated gambling industry can contribute positively to economic growth, job creation, and public services such as healthcare.
