Betano strengthens LatAm presence with Colombia launch
Kaizen Gaming has officially received authorization to launch its Betano brand in Colombia, marking the company’s significant entry as the 16th online operator in this expanding market.
The introduction of Betano further enriches Colombia’s competitive landscape, joining notable international operators such as Betsson and Rush Street Interactive’s RushBet, both of which have successfully obtained online betting licenses in the country.
According to Coljuegos, the regulatory body overseeing gaming in Colombia, the number of licensed online betting platforms is slated to reach 17 shortly, with Bingo Casino in the final stages of obtaining its authorization.
Coljuegos’ president, Marco Emilio Hincapié, emphasized the socio-economic benefits of Betano’s entry, noting that the brand will contribute to funding initiatives in Colombia’s health sector. He stated, “We continue to strengthen the online gaming industry. With the arrival of this new operator, we anticipate an increase in funding for the health of Colombians.”
Looking ahead, Hincapié projected that by the end of 2024, the online gambling sector could generate approximately COP419.5 billion (£75.6 million/€90.4 million/$95.5 million) in exploitation rights, signifying a remarkable 31% increase compared to 2023, with all funds directed towards enhancing health services in the nation.
“Online betting is now a vital component driving the country’s economic growth,” Hincapié added. “Our goal is to make the market increasingly appealing while expanding options available to bettors.”
Currently, the 16 authorized online betting operators in Colombia, as recognized by Coljuegos, include:
- Wplay
- Betsson
- Codere
- Luckia
- BetPlay
- Rushbet
- YaJuego
- Wonderbet
- Bwin
- Betano
- Rivalo
- MegApuesta
- Sportium
- FullReto
- Zamba
- Stake
Colombia: The Latest Latin American Market for Betano
Betano is strategically positioning itself within the burgeoning Latin American (LatAm) gaming market, eager to capitalize on the region’s potential. The operator has not only been proactive in securing its foothold in Colombia but was also the first to apply for a license in Brazil, where it remains among the 223 brands authorized to operate during the transitional phase until December 31.
A recent white paper from OpenBet, featuring insights from H2 Gambling Capital, highlighted that Betano holds an impressive 23% share of Brazil’s grey wagering market. Besides Brazil, Betano has successfully launched operations in both Peru and Argentina, with strategic sponsorship playing a crucial role in its regional growth.
In addition to its operational ventures, Betano is a prominent sponsor of top-tier football leagues in both Brazil and Argentina, as well as the official sponsor of the Copa América tournament held this past summer, enhancing its brand visibility and engagement with local bettors.
Potential VAT Implications for Colombian Operators
In a recent statement, the Colombian Association of Gaming Operators (Asojuegos) raised concerns regarding a proposed value-added tax (VAT) anticipated to be imposed on online betting activities, cautioning that it could significantly hinder efforts to channel players toward the legalized market.
Reports suggest that the Colombian government is considering a 19% VAT on online gambling operators. Presently, operators with a return-to-player (RTP) rate of 83% face a tax rate of 15% on their gross gaming revenue (GGR), while those with an RTP exceeding 83% are taxed at 17% of GGR.
Asojuegos expressed that the introduction of a new VAT could have “devastating consequences” for the gambling sector in Colombia. The association’s president, Juan Carlos Restrepo, voiced concerns that if the VAT is enacted, it could lower the RTP from 93% to between 71%-75%, prompting players to migrate to unregulated or international platforms not subject to these tax burdens, ultimately diminishing revenue for the legal sector.
