Revenues in the Colombian iGaming market reached COP10 billion (£1.9 billion/€2.2 billion/$2.5 billion) in the second quarter, with the sector considered a key driver of the country’s economic growth during the quarter.
The national gross domestic product (GDP) grew by 2.1% in the second quarter and the country’s National Administrative Office of Statistics (DANE) pointed out that Colombian online gambling was one of the activities that most contributed to this growth.
DANE director Piedad Urdinola stressed that recent sporting events in particular have led to an increase in online betting. At this summer’s Copa América tournament, the Colombian national team reached the final.
Marco Emilio Hincapié, president of Colombia’s gambling regulator Coljuegos, revealed that sports betting was indeed the largest contributor to the online betting sector, accounting for 47% of total gross gaming revenue (GGR) nationwide.
Localized games such as bingo and casino came second with 33% of GGR, while lottery games AstroSport and Baloto generated 13% and 7% respectively.
“This important contribution of the gambling sector to the economy is due in large part to our progress in regulating and combating illegal gambling, as well as the positive growth of online betting during the Copa América and the European Championship,” explained Hincapié.
Colombia’s healthcare sector benefits from the growth of online gambling
Colombia became the first Latin American country to regulate iGaming in 2016 when the E-Gaming Act legalized both online casinos and online sports betting.
For operators with a return-to-player (RTP) rate of 83% of the stake, the tax rate is 15% of the GGR, while operators with an RTP above 83% pay 17% of the GGR.
The healthcare sector is benefiting from the boom of the gaming industry in Colombia.
“This year, the monopoly revenue paid to Coljuegos in online gambling has increased by almost 20%,” Hincapié continued. “This means that to date, around COP 231.3 million has been invested in the health of Colombians through online betting.”
Despite the strong growth of the country’s betting sector, Hincapié is banking on more innovation to further boost the economy and receive government subsidies.
“We are pleased that the gaming sector is making a positive contribution to the country’s economy and health,” said Hincapié. “If we add up all the gaming concepts and modalities, we have already raised more than $581 million to date.”
“We hope to exceed our own projections and reach over $1 billion in donations later this year.”
