Online bets have become in one of the most interesting and lucrative markets of the entertainment industry, nevertheless, the operation by the private sector is highly regulated in Colombia.

¿How are the online bets defined under Colombian regulation?

The online bets are defined as games of luck and chance under the concept of “Novel Games”, which, they are distinguished from the traditional games by being either operated by electronic means through internet or by any other method in real time which does not requires the physical presence of the player.

¿Who can operate the novel games?

The commercial activity linked to the rendering of these kind of services becomes a part of the State´s rental monopoly, which, it holds the exclusive faculty to exploit, organize, administrate, operate, control, inspect, regulate, and surveillance all modalities of these kind of games, nevertheless, pursuant to the regulatory Colombian laws the exercise of this activity may be authorized and granted in concession to third parties once the authorization process determined by the law for this purpose has been fulfilled by the applicant. 

¿Before which authority the authorization process is exhausted?

The local authority in charge of authorizing and granting in concession the operation of novel games in Colombia is the State-Owned Industrial and Commercial Company Administrator of the Rental Monopoly of Luck and Chance Games “Coljuegos”.

¿Which are the novel games duly regulated in Colombia?

To the case of novel games, the local law has not issued an exhaustive list of games, nonetheless, within the technical specifications of the regulation enacted by Coljuegos is set out the way the following games may be operated: (i) slots machines, (ii) roulette, (iii) blackjack, (iv) baccarat, (v)  bingo, (vi) poker, (vii) virtual games, and (viii) betting on sporting and non-sporting real events.

¿Is it possible to globally operate online bets from Colombia?

The gambling and betting Colombian law geographically limits the chance of providing online bets in the country, hence, it is only possible to offer and provide online betting services within the country, and it may be only performed by individuals located in Colombia.

¿What does happen if novel games are operated without authorization?

The Regulatory Colombian law specifically contemplates the activities which are considered forbidden in relation with the exploitation of gambling and betting activities in the country, setting out in a very clear way the existing of important administrative and financial sanctions against the illegal operators. Furthermore, it is important to bear in mind, that, the irregular implementation of State monopolistic activities constitutes a crime which may bring as consequence prison penalties against the alleged authors of the criminal behavior.     
 

By: José Alejandro Sierra, Director of Sport & Gaming (Gambling & Betting) practice area.