The Colombian gambling industry is set to undergo significant changes as the country’s regulatory body, Coljuegos, has proposed new rules regarding advertisements and responsible gambling.
These measures aim to create a more controlled and transparent gambling environment while ensuring the protection of players. If approved by Congress, the regulations will come into effect on January 1st, 2024, and will impact both operators and sports teams involved in the industry.
One of the key aspects of the proposed regulations is the implementation of a tiered system for advertising restrictions. Under this system, operators will face different limitations based on their revenue and contributions to the Colombian economy. The more an operator generates and pays to the state, the more lenient the advertisement restrictions will be for them.
For instance, newer and smaller operators may be limited to spending only 20 percent of their revenue on advertising, while more established and higher-contributing operators may have the flexibility to invest higher amounts in their marketing efforts. This tiered approach aims to balance the promotion of gambling services with the need for responsible advertising practices.
The proposed regulations also emphasize the importance of clearly identifying the entities responsible for gambling advertisements. Operators will be required to display this information prominently in their ads, ensuring that consumers are aware of the source and accountable party behind the promotions. This transparency is crucial in fostering trust and accountability within the industry.
To enforce compliance with the new regulations, Coljuegos has outlined strict penalties for operators who exceed their advertising limits. If caught violating the restrictions, operators will be required to pay 100 percent of the surplus as a penalty. This includes any deals formed with sports betting teams, highlighting the need for sports teams to obtain direct permission from the regulator before entering into betting sponsorships.
The introduction of these penalties aims to deter operators from engaging in excessive advertising practices and to ensure that they stay within the prescribed limits set by the regulatory body.
In addition to advertising restrictions, the proposed regulations also address credit card deposits and responsible gambling information provided by operators. While specific details are yet to be finalized, these provisions seek to enhance consumer protection and promote responsible gambling practices.
The regulations may require operators to implement measures such as deposit limits for credit card transactions to prevent excessive gambling. Additionally, operators may be required to provide clear and comprehensive information about responsible gambling resources, including helpline numbers, self-exclusion options and other support services.
The proposed changes in Colombia’s gambling regulations have garnered attention from industry players across the Latin American region. With the market gaining significant traction in recent years, operators and industry insiders are closely monitoring the developments in Colombia.
This increased attention on Latin America comes in the wake of Brazil’s emergence as a potential hotspot for iGaming and sports betting.
However, concerns have been raised about the high taxation rates and stringent regulations in Brazil, making Colombia an attractive alternative for operators looking to expand their presence in the region.
While the proposed regulations aim to improve the gambling landscape in Colombia, there are concerns that they may inadvertently impact the overall economy. Critics worry that excessive restrictions on advertising and sponsorship deals could undermine the contributions of established operators, who play a vital role in supporting the Colombian economy.
It is important for the regulatory body to strike a balance between responsible gambling practices and the economic benefits generated by the industry. By taking into account the concerns raised by industry stakeholders, Coljuegos can ensure that the regulations are effective in promoting responsible gambling while fostering a thriving and sustainable gambling sector.
