Online bets regime in Colombia
Jose Alejandro Sierra Caballe
Brigard Urrutia, Bogota
Online bets have become one of the most interesting and lucrative markets of the entertainment industry, nevertheless, the private sector operation is highly regulated in Colombia.
How are online bets defined under Colombian regulation?
Online bets are defined as games of luck and chance under the concept of ‘novel games;’, by which they are distinguished from traditional betting or gambling games by being either operated by electronic means through the internet or by any other method in real time which does not requires the physical presence of the player.
Who can operate novel games?
The commercial activity linked to the rendering of these kind of services becomes a part of the state’s rental monopoly, which holds the exclusive right to organise, administrate, operate, control, inspect, regulate and surveil all modalities of these kind of games. Nevertheless, pursuant to the regulatory Colombian laws the exercise of this activity may be authorised and granted in concession to third parties once the authorisation process determined by the law for this purpose has been fulfilled by the applicant.
Who oversees the authorisation process?
The local authority in charge of authorising and granting in concession the operation of novel games in Colombia is the state-owned Industrial and Commercial Company Administrator of the Rental Monopoly of Luck and Chance Games ‘Coljuegos’.
What novel games duly regulated in Colombia?
To the case of novel games, local law has not issued an exhaustive list of games, nonetheless, within the technical specifications of the regulation enacted by Coljuegos is set out the way the following games may be operated: (i) slots machines; (ii) roulette; (iii) blackjack; (iv) baccarat; (v) bingo; (vi) poker; (vii) virtual games; and (viii) betting on sporting and non-sporting real events.
Is it possible to globally operate online bets from Colombia?
Colombian gambling and betting law geographically limits the provision of online bets outside of the country. Hence, it is only possible to offer and provide online betting services within the country, and it may be only performed by individuals located in Colombia.
What happens if novel games are operated without authorisation?
Columbian regulation specifically states the activities which are considered forbidden in relation to the exploitation of gambling and betting activities in the country, setting out in a very clear way the administrative and financial sanctions which will be given to illegal operators. Furthermore, it is important to bear in mind that the irregular implementation of state monopolistic activities constitutes a crime which may bring as consequence prison penalties against the alleged authors of the criminal behaviour.