Colombia court questions Coljuegos authority over gambling advertising restrictions

Colombia’s highest administrative court suspended multiple provisions of a 2023 Coljuegos resolution after finding the gaming regulator lacked statutory authority to impose advertising limits, reporting requirements and certain sanctions on online gambling operators.

The decision halted four provisions of Resolución No. 20231000019054 while a judicial review continues. The court did not annul the measures but paused their enforcement pending a final ruling on the case.

The review was initiated by private claimants Juan Carlos Calvo Ospina and Juan Pablo Cardona González.

In its ruling, the court stated: “The advertising investment cap constitutes a limitation of economic freedom for which no legal provision authorises it. Coljuegos created a sanctioning regime that requires proper legal habilitation. Furthermore, mandating disclosure of itemised invoices and contracts demands access to confidential business information beyond Coljuegos’ statutory powers.”

Advertising controls and disclosure obligations halted

Among the provisions suspended was a limit on advertising expenditures that restricted operators’ marketing investment to a 20% baseline linked to gross gaming revenue (GGR).

The court found that the financial restriction interfered with economic freedom and that Coljuegos lacked a clear legislative mandate to establish such a limit through an administrative resolution.

Judges also suspended reporting requirements that obligated operators to submit annual advertising plans and detailed quarterly records. According to the ruling, those obligations required disclosure of commercially sensitive information without explicit legal authorization.

Advertising investment plans, invoices and supplier contracts were recognized by the court as confidential business information.

Sanctions and share-sale requirements affected

The court also suspended several sanctioning provisions targeting companies that used unauthorized trademarks or maintained links with illegal gaming providers.

Those provisions had prevented concession contracts from being granted to such companies and included penalties ranging from fines to potential contract termination for repeated violations.

In addition, the court partially suspended a requirement obligating concessionaires to obtain prior approval from Coljuegos before selling shares in their businesses.

Constitutional principles cited by the court

The ruling relied on three constitutional principles.

First, the court determined that while Coljuegos possesses authority to regulate Colombia’s state monopoly on games of chance, only the legislature may adopt measures that significantly affect economic freedoms or the generation of monopoly revenues.

The court also concluded that establishing offenses and penalties falls within the authority of government policymakers rather than an administrative regulator.

Another factor involved the protection of commercial confidentiality. Judges determined that Coljuegos lacked a clear legal basis to compel operators to provide detailed commercial records and contractual information.

Measures against illegal operators remain in force

Several provisions of the regulation were left untouched by the ruling.

Requirements for clear identification of authorized operators remain enforceable. Coljuegos’ Gerencia de Control de Operaciones Ilegales also retains the ability to use statutory sanctioning mechanisms against illegal gaming providers.

The court affirmed that Coljuegos maintains authority under existing legislation to promote transparency in gambling advertising and pursue enforcement actions against unauthorized operators.

Industry faces taxes while awaiting final ruling

The decision limits Coljuegos’ immediate ability to enforce certain advertising restrictions and sanctioning measures on Colombia’s online gaming sector.

The industry remains a source of public revenue under the administration of President Gustavo Petro. Earlier this year, Coljuegos reported that gambling operators have transferred more than COP4 trillion ($970 million) to Colombia’s healthcare system since 2022.

Online gaming operators have also been subject to recent tax measures. These include a temporary 19% VAT on player deposits introduced in 2025 and a 16% levy on online gambling deposits intended to support flood recovery efforts and the country’s 2026 national budget.

The Council of State is expected to issue a final decision on the annulment petition at a later date. If the challenged provisions are ultimately annulled, any future attempt by Coljuegos to introduce similar measures would require explicit legislative authorization.