Colombia’s Council of State court has overturned marketing budget restrictions imposed by Coljuegos on local operators.
Colombia’s highest administrative court has suspended a 2023 Coljuegos resolution which imposed strict advertising, sponsorship and promotion requirements on internet gaming operators.
An advertising spend cap, which limited operators’ marketing investment to 20% baseline linked to GGR was among the measures halted.
The court ruled that these financial restrictions interfered with economic freedom and that Coljuegos lacked a clear statutory mandate to impose such limits through administrative resolution.
This interlocutory decision did not annul the provisions outright, but paused their enforcement pending a final verdict on the matter.
A judicial review into the measures, initiated by private claimants Juan Carlos Calvo Ospina and Juan Pablo Cardona González, is ongoing.
Suspended provisions
In total, the court suspended four key provisions from the 2023 Resolución No. 20231000019054 gambling regulation after finding that the regulator had exceeded its legal authority in several areas.
This overstepping included reporting requirements obliging operators to submit annual advertising plans and detailed quarterly records. The court considered these obligations an unjustified intrusion into commercially sensitive information in the absence of explicit legal authorisation.
Also suspended were several sanctioning provisions that have prevented concession contracts from being granted to companies using unauthorised trademarks or linked to illegal providers. It also imposed fines and potential contract termination for repeated breaches.
Finally, the court partially suspended a provision requiring concessionaires to obtain prior approval from Coljuegos before selling shares in their businesses.
Restrictions from illegal operators remain
Despite the ruling, several of the regulator’s rules remain enforceable, including a mandate for clear disclosure of authorised operators.
Coljuegos’ Gerencia de Control de Operaciones Ilegales will still be able to utilise statutory sanctioning mechanisms to combat illegal gaming providers.
The court affirmed Coljuegos’ mandate to ensure transparency in advertising and pursue illegal operators under existing statutory powers.
In its ruling, the court summarised: “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.”
Legal reasoning and constitutional principles
In reaching its decision, the court relied on three core constitutional principles. First, it found that although Coljuegos had broad powers to regulate Colombia’s state monopoly on games of chance, only the legislature could impose measures that significantly affect economic freedoms or the generation of monopoly revenues.
The court also emphasised that the establishment of offences and penalties fell within the exclusive authority of government policy makers.
Finally, the importance of protecting commercial confidentiality was highlighted. It recognised advertising investment plans, invoices and supplier contracts as commercially sensitive information and concluded that Coljuegos lacked a clear legal basis to require operators to disclose such data.
The decision substantially restricted Coljuegos’ immediate power to enforce specific advertising caps and sanctioning measures on Colombia’s online gaming operators.
The sector has become an increasingly important source of public revenue under President Gustavo Petro’s administration, with Coljuegos reporting earlier this year that gambling operators have transferred more than COP4 trillion ($970 million) to the country’s healthcare system since 2022.
At the same time, online operators have faced a series of new tax measures, including a temporary 19% VAT on player deposits introduced in 2025 and, more recently, a 16% levy on online gambling deposits aimed at supporting flood recovery efforts and the 2026 national budget.
The Council of State will issue a final decision on the annulment petition in due course. Should the court fully annul the challenged provisions, reintroduction of similar measures by Coljuegos would require explicit legislative authority.
