Colombia introduces VAT, Belgians under 21 can’t gamble, Japan checks offshore sites
Colombia plans a VAT tax on gambling, Belgium bans under-21s from gambling, and Japan probes offshore platforms.
Colombia plans VAT tax for gambling
Colombia’s authorities have announced a plan to add a 19% VAT tax to online gambling.
The current administration, headed by President Gustavo Petro, is reportedly looking to bolster the national budget by introducing taxes on industries that have been untaxed up until recently. According to the government, the tax would bring in about COP 2 billion per year.
However, the Colombian Association of Gaming Operators (Asojuegos) objects to the tax. According to the organization, the tax would have the effect of lowering RTP from between 90% and 95% to around 78%. This would drive players to visit offshore platforms that do not charge VAT, and therefore have higher RTP rates.
As the first country in Latin America to have a fully regulated gambling market, Colombia is something of a trendsetter in the region. If the tax raises funding without driving too many players offshore, other Latin countries might follow suit.
Belgium bans under-21s from gambling
The recent trend in European markets is increasing restrictions on the gambling industry, often in the form of limits on what ads you can show, and where and when you can show them. Belgium is one example, with a royal decree in 2023 all but banning gambling advertising.
And now the country has gone a step further. The gambling age in Belgium has been raised to 21 for all verticals, putting online gaming at the same level as land-based casinos, which have required players to be 21 since 2018.
The move comes despite a decrease in underage gambling in the country. According to the Flemish Expertise Centre for Alcohol and Other Drugs, scratchcard play among under-21s reached an all-time low of 9.7% in 2022-2023, with lottery and poker play hitting 5.3% and 2.3% respectively — both all-time lows as well.
Additionally, Belgium banned bonuses and free bets in 2020, as well as introducing a €200 weekly deposit limit.
Japan probes offshore casinos
The Japanese National Police Agency has announced that it will soon launch a probe into offshore casinos.
Gambling is tightly restricted in Japan, with only a few legal verticals available, such as lotteries and limited forms of sports betting: horseracing, bicycle racing, motorcycle racing, and powerboat racing.
According to the NPA, online gambling participation surged during covid lockdowns, and there is growing concern about the ill effects of problem gambling. This explains the probe announcement, as traditionally the government has long turned a blind eye to players visiting offshore sites, with reports of players suffering legal consequences coming few and far between.
In lieu of actual casino gaming, therefore, Japanese players have long visited Pachinko parlors. Pachinko is an arcade-style game, very similar to pinball, but as players win prizes — not money — it escapes the legal definition of gambling (prizes can usually be exchanged for money in a shop nearby the pachinko parlor).
The landscape, however, is shifting; by 2030, the city of Osaka is expected to host the country’s first land-based casino.
