Regulated
Regulated, open licensing regime.

Colombia was the first regulated i-gaming market within Latin America (LATAM), adopting an open-licence, European styled regulatory regime and being the only country in the region to do so. One licence covers all authorised verticals. Licence costs and capital requirements for operators are less expensive than in other regulated LATAM markets such as Argentina, yet regulation is tailored towards more established operators, with both fixed and variable regulatory fees being moderate. Despite such costs, the market is still considered to be a lucrative one.

Market size
In July 2022, Coljuegos, the Colombian regulator reported the following figures:

• Approx Eur 77,402,042 collected in remote gaming taxes in 2023.37% of all gaming revenue is online gaming revenue
• There are 16 authorised gaming operators on the market. 67% of revenues come from sports betting

Revenues as per vertical, September 2023:

• 61.8 – Sportsbook
• 22.5 slots
  8.4% live casino
• 3.2 Roulette
• 3.9- Others

The number of active accounts reported at September 2023 was 9.165.548, a 7.5% growth from the previous year.

Pertinent demographics

• Estimated population: 51.96 million (Source: data reportal)
• Average age: 31 (Source – Statista)
• Population aged between 18 and 65: 55% (Source: Yearbook of the Game in Colombia, Codere)
• Estimated internet penetration (January 2023): 75.7%
• Social media users: 35 million
• Total mobile connections: 73.68 million
• Web traffic originating from Android devices: 86.9%
• Web traffic originating from IOS: 12.63%
• Active bank accounts: 55.9%%
• Active credit cards: 13.2%
• Mobile money accounts: 21.8%
• Online transactions (online bill payments or using internet generally for payments): 19.1%

Competitive landscape
There are currently sixteen licensed operators on the Colombian market. These include some major UK and European multi-nationals.

Over the past two years, we have seen various new licences being issued as well as some acquisitions by larger international market players.

Localisation

• Localised distribution and retail are highly required for this market
• Localised advertising is recommended due to consumer preference for traditional marketing types such as radio, television and football sponsorships

Consumers prefer a cash based, retail betting system whereby payments are made through land-based shops and used to top up online accounts. Wide reaching networks of this type already exist in Colombia.

The best point of entry to the market is via a sportsbook product offering.

Top Key Attractions and Challenges
Attractions

• Well regulated, open licensing process with a European model
• Colombia’s population size and cultural attitude towards betting and sports in general make it an attractive location to launch an i-gaming offering
• Increase in local bank accounts and electronic payment participation
• Liberal approach to advertising, including sponsorship of sports teams and sporting events
• Liberal approach towards bonuses, promotions and payment acquisition

Challenges
Localised marketing and distribution networks are a strong requirement in order to acquire players. Affiliate and other types of digital marketing are still in their infancy in the country and consumers respond more to traditional marketing and distribution methods, which may at times be expensive.