Gaming industry is boosting Colombian GDP

Garance Limouzy September 27, 2024

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Gaming industry is boosting Colombian GDP

Games of luck and chance are one of the sectors of the economy that most boosted the growth of the Colombian Gross Domestic Product during the second quarter of the year 2024, according to Coljuegos, the country’s regulator. The national GDP increased by 2.1 percent, with agriculture, public administration, and entertainment activities leading the way, as reported by the National Administrative Department of Statistics (DANE).

Piedad Urdinola, DANE’s director, explained, “What is driving the most growth are artistic and entertainment activities, among which are online gambling, as they are associated with the sports events we have had in recent months that pave the way for online sports betting.”

Online gaming, particularly sports betting, generated impressive revenue, surpassing US$2.4 million in the second quarter alone, according to Marco Emilio Hincapié (pictured above), president of Coljuegos. He noted that internet games have experienced a nearly 20 percent increase in monopoly rents paid to Coljuegos this year.

Currently, online betting accounts for 47 percent of total revenue from the gaming industry, while land-based games such as bingo halls and casinos hold a 33 percent share. The remaining revenue is divided between games like SuperAstro and Baloto, which account for 13 percent and 7 percent, respectively.

Looking ahead, Hincapié believes the industry will be exceeding projections for the year. “We continue to write a new history for the entity and for the industry. We intend to continue innovating and generating regulations so that all types of games generate more jobs, boost the economy, and continue to provide valuable resources for health and scientific research,” he explained.

Coljuegos’ regulatory strategy

Hincapié credited this positive contribution from the gaming sector to recent regulatory advancements and the control of illegal activities. “This important contribution of the gaming sector to the economy is due, to a large extent, to our advancements in regulation, efforts to combat illegality, and the remarkable growth of online betting during events like the Copa America and the European Championship,” he declared.

To ensure transparency in the resources within the gambling industry, Coljuegos is implementing the Risk Management System for Money Laundering, Terrorist Financing, and the Proliferation of Weapons of Mass Destruction (SARLAFT). This system aims to identify risks both within Coljuegos and among gambling operators in Colombia, allowing for the creation of specific regulations to prevent criminal activities.

During the launch of the ninth LAFT America Congress in September 2024, Marco Emilio Hincapié, president of Coljuegos, announced that agreements have already been signed with international, national, and local organisations to combat corruption and illegality in the sector. He stated, “We are aligned with SARLAFT’s policy to fight risky activities within the gambling sector,” noting partnerships with the United Nations Office on Drugs and Crime (UNODC) and the Financial Information and Analysis Unit (UIAF).