Columbia Online Gambling undergoes shake up
Last week the Columbian Government endeavoured to control gambling. The shake up was an attempt to profit from and control Columbia online gambling.
The national gambling regulator, Coljuegos announced a blackist of 325 gambling websites which would be banned by Federal Government. That followed a failed attempt by government to get the online casinos to sign up for an online gambling licence at a cost of $160,000 dollars. The government is taking a tough approach to legalisation of online casinos in Columbia. The online casinos remain withdrawn from applications at the moment.
In addition to the licencing fee the government introduced a 16% VAT tariff on player deposits which might also have been a bridge to far for the online casinos. It has since been marginally reduced by 1%.
Many of the online casinos are expected to opt out of the licensing, based on the licensing fee alone. The burden of that taxation is just expected to be too them to endure.
This is one of those situations where the government set out what it wants without any prediction of the outcome. Columbian citizens are not exactly high on the “rich list” so it is possible the bars for the gambling operators have been set to high to sustain a viable businesses.
Many, if not all of the online casino operators are expected to be forced to withdraw from operations in Columbia. It is true, as some operators leave the market, viability might increase for those remaining. However when governments dictate such high stakes they might be destroying what could otherwise have been a viable business for most operators.
The blacklist contains some familiar names from the European gambling world. For example; 888.com, Betfred, William Hill, Betsson, Pokerstars, Paddy Power and Ladbroke. Columbia online gambling is certainly undergoing a shake up. Read our online casino reviews.
It is easy to question the wisdom of governments who might be operating with a meaningful plan, it just does not seem so. We will have to wait and see what happens with this cat and mouse game.