In a recent statement made by Asojuegos, the Colombian Association of Gambling Operators, it was expressed that imposing a value-added tax (VAT) on online gaming in the country would lead to a massive migration of players to illegal platforms. This warning comes as the Colombian government considers implementing this tax on online gaming as part of a broader effort to increase revenue.
According to Asojuegos, taxing online gaming would have a detrimental impact on the industry as it would increase the cost of playing for consumers and ultimately drive them towards unlicensed and illegal platforms. This would not only result in a loss of revenue for licensed operators, but also undermine the government’s efforts to regulate the industry and protect players from potential risks associated with illegal gambling.
The association has highlighted the success of the current regulatory framework in Colombia, which has allowed for the growth of a legal and transparent online gaming market. However, they argue that introducing a VAT on online gaming would disrupt this progress and push players towards unlicensed operators who do not adhere to the same level of regulatory standards.
Asojuegos also emphasized the potential negative social consequences of taxing online gaming, particularly in terms of responsible gambling measures. By pushing players towards illegal platforms, the association argues that it would be more difficult for authorities to monitor and enforce regulations aimed at protecting vulnerable individuals from the harms of excessive gambling.
In response to these concerns, the association has called on the Colombian government to reconsider its plans to tax online gaming and instead focus on other ways to increase revenue without jeopardizing the integrity of the industry. They have also highlighted the need for a collaborative approach between government officials, industry stakeholders, and player advocacy groups to ensure a sustainable and responsible gaming environment in Colombia.
Overall, the warning from Asojuegos serves as a stark reminder of the delicate balance that exists within the online gaming industry and the potential consequences of implementing tax policies that could ultimately harm both operators and players. It remains to be seen how the Colombian government will respond to these concerns and whether they will take steps to address them in a way that promotes the long-term sustainability of the industry.