Colombia stands out as a stable and attractive market for international investors, thanks to its competitive tax rate on gaming revenues and a well-developed legal system that supports both local and foreign operators. What does this mean for businesses entering the country? In this article, Atlaslive examines the gaming sector in Colombia, analyzing its growth compared to the broader South American region.
Can a successful gaming business be developed within this legal framework? Are players and operations really protected? These are crucial questions for anyone considering Colombia as a key market.
The article reveals important market figures, changes in consumer preferences, and emerging trends. It also offers insights into the country's legal foundation, helping iGaming companies understand how to leverage Colombia's impressive growth potential and its expanding player base in online gaming, not just for 2025, but for the following years.
Colombia's journey to a regulated gaming industry
Gaming in Colombia has evolved from a cultural pastime to a fully regulated industry. Before legalization in 1943, informal gambling activities such as card games, cockfights, and lotteries were deeply rooted in Colombian society. The 1943 legislation marked the first step in formalizing the industry, requiring operators to pay taxes and establishing a basis for future regulations.
Significant milestones followed, including the creation of ETESA, a government agency, in 1993, to oversee gaming activities. Although ETESA faced corruption challenges, its dissolution in 2011 led to the creation of Coljuegos, a regulatory authority that initiated a new era of transparency and strict oversight.
A major innovation came in 2016 with the Electronic Gaming Law, positioning Colombia as a pioneer in Latin America by fully legalizing online gaming. The first online gaming license was issued in 2017, establishing the foundations for a regulated and thriving market.
Colombia's gaming regulations have become some of the most advanced in South America. Operators must comply with strict KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols, technical standards, and responsible gaming measures, introduced in the 2020s. These regulations ensure financial transparency and player protection, while strengthening a competitive environment for local and international operators.
Today, Colombia offers a legal and well-structured gaming market, requiring operators to establish a local presence and comply with rigorous standards.
Atlaslive prioritizes safe and responsible gaming, equipping its partners with advanced risk management, anti-fraud, and data protection tools. The platform features a robust anti-fraud system that detects and prevents risks, such as account takeovers, arbitrage betting, and money laundering. Real-time analysis monitors unusual betting patterns, quickly identifying issues to protect operators and players.
To provide compliance and integrity to the platform, Atlaslive offers customizable geolocation services and intuitive user management features, helping operators meet regulatory standards effortlessly. Its advanced KYC framework includes automatic document checks, 3D facial recognition, and real-time biometrics, providing a secure and seamless experience.
Colombia's progress among the iGaming giants of South America
The gaming market in Colombia has seen steady growth, much like that of Peru, driven by the legalization and development of online gaming. Between 2017 and 2021, the Gross Gaming Revenue (GGR) experienced a notable increase, reflecting the influence of a well-regulated online gaming industry. This upward trend highlights the country's potential for further expansion in the sector in the coming years.
The online gaming market in Colombia continues to grow steadily, but compared to other South American markets, which are rapidly expanding across the region, it is still somewhat behind. Between 2025-2028, Colombia is expected to account for 23-25% of the region's GGR, positioning it as one of the main drivers of the iGaming sector in South America.
However, sudden leaps in regional GGR growth in 2020 and 2023 were largely caused by the dominant markets of Argentina and Brazil. These two regional giants are ahead in South America, thanks to their advanced strategies and robust iGaming development.
While Colombia contributes significantly to the region's progress, Argentina and Brazil continue to set the pace, shaping the future of iGaming in South America with their large market shares and innovative approaches.
iGaming in Colombia: total revenue by three main categories and ARPU
Online sports betting has emerged as the main category in Colombia's online gaming market, accounting for 66% of the GGR since 2022. This trend reflects the country's passionate sports culture, where Colombians are loyal fans of their favorite teams and events. The legalization of online sports betting has further boosted this category, creating opportunities for local and international operators to develop and grow.
Colombians have a long-standing passion for soccer, which dominates betting in the country. Major tournaments such as the FIFA World Cup, Copa America, and national leagues like the Categoría Primera A attract significant betting interest. Fans place bets on match outcomes, player performances, and even live events, making sports betting an integral part of the fan experience.
Besides soccer, other sports such as basketball, cycling, and boxing also enjoy popularity, with Colombians eager to support their national athletes on global stages. Horse racing and tennis are growing segments, attracting bettors with their dynamic play and varied betting options.
Interestingly, eSports betting is gaining ground in Colombia, particularly among the younger audience. Games like League of Legends, Dota 2, and Counter-Strike: Global Offensive are becoming more popular. Increased internet penetration, accessible streaming platforms, and the allure of competitive gaming events are driving this growing trend.
As the global eSports industry expands, the Colombian market is beginning to embrace this new style of modern betting, offering operators the chance to engage a tech-savvy audience.
Online sports betting is not just growing — it's dominating. Since 2017, it has shown the fastest growth among all categories, and by 2025, the average revenue per user (ARPU) for online sports betting is expected to triple compared to other categories, surpassing $1,100.
By 2028, the trend will continue to grow, consolidating its position as the favorite pastime for a growing audience. This increase speaks volumes about the enthusiasm and deep interest of users in sports betting.
In contrast, online casinos and lotteries tell a quieter story. Their ARPU remains relatively stable, below $300, with only minor fluctuations. This reflects a more modest interest from players or a market with steady, but less dynamic, growth.
The gap between the ARPU of online sports betting and other categories will dramatically widen by 2025 and beyond. Sports betting is not just a leader — it's the engine driving the future of gaming revenue growth.
Colombia's ARPU is growing faster than the South American average. By 2025, it is expected to be 30% higher than the regional average, highlighting Colombia's strong position in the gaming sector and the potential for greater purchasing power among its players.
This growth trend will continue until 2028, when Colombia's ARPU is expected to reach $911, compared to the regional average of $772. Since 2020, Colombia's ARPU has consistently outperformed the region, with the difference increasing each year. This suggests better growth conditions or higher demand for gaming services in Colombia than in its neighbors.
Colombian players: penetration rate and total unique players attracted
iGaming in Colombia continues to expand, with the number of unique players projected to grow from 0.64 million in 2017 to 2.08 million by 2028. However, growth rates have slowed since peaking at 17.46% in 2021, indicating a maturing market. From 2024, the demand for online sports betting and online casinos appears balanced, showing that both categories have similar popularity.
With many players likely involved in both sports betting and casino games, there is significant potential for cross-selling and increased participation in both categories. As the market matures, future growth will depend on innovation and player retention, rather than just attracting new users.
Colombia has one of the highest gambling penetration rates in South America, trailing only Argentina. By 2028, the overall penetration rate is expected to reach 3.9%, significantly outperforming the regional average of 2.46%. This high demand highlights Colombia's strong position as a leader in the iGaming sector of the region, particularly in online sports betting, which will reach a penetration rate of 2.27%, followed by online casinos at 1.61%.
In 2025, Colombia is projected to rank third in South America in GGR (Gross Gaming Revenue) and unique players, with an ARPU of $823 — 29.3% above the regional average. Online sports betting (79.6% of GGR growth) and the increase in unique players (growth of 62.6%) will drive market expansion, consolidating Colombia as a key player in the iGaming scene of the region.
Main conclusions
With its strong analytical capabilities and a robust base, the Atlaslive platform considers valuable the market research of South America to enhance its customizable features and support its partners.
Today, any emerging or rapidly developing iGaming market requires dynamic technologies that can meet the evolving needs of users and operators. The Atlaslive platform offers complete and adaptable solutions, meeting all essential requirements for success in online gaming.
From an innovative Sportsbook and diverse casino offerings to essential tools like the Payment Hub, CRM, Bonus Engine, and more, Atlaslive empowers its partners to stay competitive and efficient in this fast-paced sector.
In a region full of potential and intense competition, Atlaslive stands out. With the right strategies and cutting-edge technologies, operators can achieve remarkable results and enhance the user experience.
Step into the future of iGaming with Atlaslive.
Source: Atlaslive
