Colombia’s Petro Forced to Seek Congressional Approval for Gambling VAT After Courts Block Emergency Decrees
Colombia’s President Petro must now seek congressional approval for a gambling VAT after the Constitutional Court blocked his emergency decrees.Summary
Colombia’s Constitutional Court has ruled President Gustavo Petro’s economic emergency decree unconstitutional, ending a 13-month effort to impose a value-added tax (VAT) on the online gambling sector through executive action. The court found that the decree exceeded the president’s constitutional powers, preventing the collection of approximately $3.1 billion in revenue. The initial VAT introduction in February 2025 led to a 30% drop in online gross gaming revenue (GGR), according to Fecoljuegos. Petro attempted to circumvent a Senate rejection by invoking emergency powers and issuing further decrees, including one that explicitly taxed cryptocurrency deposits for gambling, but these were also suspended. The ruling forces the government to pursue any future gambling tax through Congress, creating a significant budget gap and potentially delaying new legislation until after the 2026 elections. Despite the financial implications, Colombian equity markets reacted positively, viewing the court’s decision as a sign of institutional strength.
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