Kaizen Gaming has secured authorisation to launch its Betano brand in Colombia, becoming the 16th online operator in the market.
Betano joins other international operators including Betsson and Rush Street Interactive’s RushBet securing an online betting licence in Colombia.
Regulator Coljuegos revealed the number of online betting platforms licensed in Colombia will reach 17 in the coming weeks, with Bingo Casino also in the process of achieving authorisation.
In announcing Betano’s successful licence application, Coljuegos president Marco Emilio Hincapié said the brand would help efforts to grow funding for the nation’s health sector.
“We continue to strengthen online gaming industry,” Hincapié said. “We hope that, with the entry of this new operator, we can continue to increase funding for the health of Colombians.”
Hincapié expects that by the end of 2024, the online gambling sector will have paid approximately COP419.5 billion (£75.6 million/€90.4 million/$95.5 million) in exploitation rights, an increase of 31% compared to 2023, with all of those contributions going to the health sector.
“We are seeing that online betting is a sector of the economy that has driven the growth of the country’s gross domestic product (GDP),” Hincapié added. “Therefore, we are working to make the market even more attractive and to provide more options to bettors.”
Currently, the 16 online betting operators authorised by Coljuegos are:
- Wplay
- Betsson
- Codere
- Luckia
- BetPlay
- Rushbet
- YaJuego
- Wonderbet
- Bwin
- Betano
- Rivalo
- MegApuesta
- Sportium
- FullReto
- Zamba
- Stake
Colombia the latest LatAm nation for Betano
Betano is one of a number of operators looking to make a dent in the exciting LatAm region.
It was the first to apply for a licence in Brazil and is one of 223 brands currently authorised to continue operations during the ongoing transition period in the country between 1 October and 31 December.
Earlier this year, a white paper from OpenBet using research from H2 Gambling Capital found Betano was leading the way in Brazil with a 23% share of the grey wagering market in the country.
Betano is live in Peru and Argentina and sponsorship has formed a key part of its strategy in the region.
The operator is the sponsor of the top-flight football leagues in both Brazil and Argentina, while it also sponsored the Copa América tournament this past summer.
Could a new VAT pose a problem for operators in Colombia?
In September, the Colombian Association of Gaming Operators (Asojuegos) warned a new value-added tax (VAT) on online betting in the country could cause issues in regards to channelisation towards the legal market.
It has been reported that the Colombian government would review proposals to introduce an additional 19% VAT on online gambling operators.
As it stands right now, operators with a return-to-player (RTP) of 83% of stakes are taxed 15% of their gross gaming revenue (GGR). Operators with an RTP exceeding 83% pay 17% of GGR.
In Asojuegos’ view, the new VAT could have “devastating consequences” on the gambling industry in Colombia, especially if it drives players and operators into the black market.
Asojuegos president Juan Carlos Restrepo said: “If VAT is applied, the return to the player would be reduced from 93% to 71%-75%, which would cause players to migrate to illegal or international platforms that are not subject to these tax burdens, which would decrease the sector’s income.”
