Colombian Regulator Proposes Stricter Advertising and Sponsorship Regulations for Gambling Operators

The proposed regulations include capping advertising spend based on reported revenue, banning sports-betting sponsorships by unlicensed operators, and implementing stricter responsible gambling measures.

Advertising Spend Cap

The draft resolution proposes a cap on the maximum amount that gambling operators can spend on advertising and sponsorship. This cap is determined based on the amount of revenue-based taxes paid to the regulator in the previous year.

Operators exceeding their allowable limit may face fines of up to 100 percent of the excess spending. Operators are required to submit an advertising investment plan for the upcoming year to ensure compliance.

Limit for Newly Licensed Operators

Newly licensed operators would have a maximum advertising spend limit of up to 80,000 legal monthly salaries, roughly equivalent to $23 million. This restriction prevents new entrants from entering the market with an unlimited advertising budget.

Ban on Sports Team Advertising Contracts

The draft resolution prohibits professional sports teams in Colombia from entering into advertising contracts or agreements with unlicensed gambling operators.

However, legal experts have raised concerns about this provision, suggesting that Coljuegos may not have the authority to decide with whom private entities can sign agreements.

Vague Language

The draft resolution has been criticized for its vague language, leaving room for subjective interpretations. Key terms and conditions, such as responsible gambling and risk behaviors, are not clearly defined, raising concerns about the lack of specificity in the proposed regulations.

Analysis of Risky User Behavior

The draft resolution requires all Colombian operators to establish “mechanisms and protocols” for analyzing risky user behavior, including criteria such as gambling volume, frequency, and deposit patterns. However, a transition period for compliance is not specified in the draft.

Coljuegos’ draft resolution reflects a trend of stricter regulations in Latin America’s gambling industry. While the proposed regulations aim to address responsible gambling and advertising concerns, legal experts have raised questions about the regulator’s authority and the clarity of certain provisions. The final version of the resolution, once approved, will impact how gambling operators advertise and sponsor events in Colombia.