The Constitutional Court of Colombia ordered the provisional suspension of an economic emergency decree issued by the government of President Gustavo Petro that would have significantly increased taxes applicable to the iGaming industry. The decision, adopted by a majority of six votes to two in the full court, temporarily blocks the implementation of a 19% value-added tax on online gaming and betting services.
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Decree suspended until final ruling in Colombia
In Colombia, the judicial decision directly affects Legislative Decree 1390 of December 22, 2025, which ordered the application of a 19% VAT on online gaming and betting services as an emergency fiscal measure during the economic and social emergency declared by the government.
The court declared that the measure will remain suspended until a final ruling on its constitutionality is issued. The session was held with eight magistrates, following the acceptance of the recusal of the court’s president, Jorge Enrique Ibáñez.
Magistrate Camargo’s report identifies irregularities
The suspension was based on a report prepared by Magistrate Carlos Camargo, who argued that the immediate suspension of the state of emergency was necessary to prevent irreversible legal damage. The 86-page document identified both formal and substantive defects in the government decree.
Procedural deficiencies
According to Magistrate Camargo’s report, the declaration of emergency contains procedural irregularities, including deficiencies in the signing of the administrative act. These formal flaws compromise the legal validity of the decree from its origin.
Insufficient justification for the emergency
The analysis also cited insufficient justification for each of the eight causes invoked by the government to support the declaration of emergency powers. This lack of substantiation represents one of the main arguments for considering that the decree does not meet constitutional requirements.
These flaws, argued the magistrate, justified the exceptional use of a precautionary suspension to prevent the consolidation of irreversible legal effects before constitutional review was completed.
Burden of proof on the executive
The court emphasized that the burden of proof lies with the executive branch to demonstrate that emergency measures are strictly necessary, proportionate, and directly linked to the cited causes. In this case, the government would not have succeeded in meeting this justification standard.
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President Petro’s response
President Petro publicly reacted to the suspension, defending the decree and criticizing the court’s decision. In a message posted on Twitter, the president said the ruling would have broader economic consequences, arguing that blocking the emergency decree effectively protects tax advantages for the wealthiest sectors.
Petro added that the burden of the resulting crisis would be shifted to society and would be reviewed in a future Congress, where his administration would seek to prevent what he considers inequitable outcomes.
Impact on the iGaming industry
The provisional suspension represents temporary relief for the iGaming industry in Colombia, which would have faced a substantial increase in its tax burden had the 19% VAT been implemented. This tax would have been added to the sector’s existing fiscal obligations, potentially affecting the competitiveness of legal operators against illegal platforms that do not comply with tax regulations.
The uncertainty generated by the decree and its subsequent suspension affects the fiscal and operational planning of companies in the sector, which must now await the Constitutional Court’s final decision to know the tax framework under which they will operate.
Next steps
The court has not set a deadline for its final decision on the constitutionality of the decree, but the provisional suspension remains in effect while constitutional scrutiny continues. During this period, the 19% VAT on iGaming services cannot be applied.
The Petro administration could attempt to correct the deficiencies identified by Magistrate Camargo and present a new justification for the measure, or alternatively, seek approval for a tax reform that includes the iGaming sector through the ordinary legislative process in Congress.
The Constitutional Court’s final decision will determine not only the future of this specific tax but also the scope of presidential emergency powers in economic and tax matters in Colombia.
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