The joint operation has dismantled the Apolo group, which was allegedly generating close to COP10 billion (£1.8 million/€2.1 million/$2.3 million) a year in profits from the illegal sale of raffles, bonds and games of chance.
The Apolo group was operating in regions such as Risaralda and Valle del Cauca. The illegal gambling operations meant public health and social development sectors in those regions were missing out on vital funding, the Colombian Association of Gaming Operators (Asojuegos) said in a press release.
The joint operation carried out 17 raids, with 18 people arrested and facing charges of crimes such as aggravated criminal conspiracy and illicit enrichment.
Around COP250 million in cash was seized in the raids, as well as materials relating to illegal gambling such as clandestine raffle tickets. The operation also found weapons and numerous false identity documents.
Asojuegos says the operation shows how the country is working to fight against illegal gambling and redirect those proceeds into onshore operators, thus boosting the health and welfare sectors.
“Legal games of luck and chance generate essential resources for the health of all Colombians, in addition to being a source of employment and a driver of economic development in the regions,” Asojuegos explained.
“From Asojuegos, we invite the community to support only legal games, betting in authorised places, and thus contributing to the progress of our country.”
Fears over new VAT’s impact on Colombian illegal gambling
In September, it was reported the Colombian government would review proposals to bring in a new 19% value-added tax (VAT) on online gambling operators.
Currently, operators with a return-to-player (RTP) rate of 83% of stakes are taxed 15% of gross gaming revenue (GGR). Meanwhile, operators with an RTP of over 83% pay 17% of GGR.
Back in February though the senate analysed the current rate, and attempts have since been made to implement additional taxes. This has caused industry concern that with the tax burden on legal operators potentially on the rise, players and operators alike could instead stray to the illegal side of the market, benefitting organised crime groups such as Apolo.
Asojuegos has warned the new VAT could have “devastating consequences” on the Colombian gambling industry, with a less competitive legal market leading to rising activity for illegal gambling networks and subsequently less funding for the health sector.
Asojuegos president Juan Carlos Restrepo said: “If VAT is applied, the return to the player would be reduced from 93% to 71%-75%, which would cause players to migrate to illegal or international platforms that are not subject to these tax burdens, which would decrease the sector’s income.”
Should the VAT be confirmed, the new tax is expected to come into effect from 1 January 2025.
Original article: https://igamingbusiness.com/legal-compliance/cololombian-operation-illegal-gambling/
