President Defies Court : GamblersPost

President of  Colombia Gustavo Petro refuses to back down on gambling taxes. He wants to keep the 19% VAT on online gambling despite court opposition. The Constitutional Court recently suspended his emergency economic decree. This decree included the controversial gambling tax measures. However, Petro remains determined to push forward.

The 19% VAT on online gambling GGR took effect in February 2025. Gaming operators have opposed the hike from the start. Meanwhile, Petro sees this revenue as essential.

Finance Minister Germán Ávila must now re-draft the tax plan. He needs to address the court’s concerns while preserving the revenue stream. The court questioned whether Petro can use executive orders for budget matters.

The stakes extend far beyond gambling policy. Colombia’s budget totals COL$550 trillion (€125 billion). Gambling taxes help balance these books. Therefore, Petro fights hard to protect this income source.

In addition, the budget supports Petro’s 2026 re-election campaign. This explains his urgency. Losing the gambling tax would create a significant shortfall.

The court expressed doubts about Petro’s approach. It wants proper legislative process, not executive shortcuts. However, the president views this as a budget emergency.

Operators now face uncertainty. They must plan for taxes that courts might strike down. Meanwhile, the government scrambles to fix the legal framework.

This battle highlights tensions between branches of government. It also shows how gambling taxes increasingly fund national priorities. The outcome will shape Colombia’s gaming market for years.

Petro’s team hopes the revised plan will survive judicial review. The gambling industry watches closely. Everyone awaits the next move in this high-stakes political showdown.