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 companies entering the market? Should they focus on sports betting or online casinos to meet user demand? Can a successful gaming business be developed within this legal framework? Are players and operations truly protected? These are critical questions for anyone considering Colombia as a key market.
In this article, Atlaslive analyzes the Colombian gaming market, examining its growth in comparison to the South American region. The article reveals key market figures, changing customer preferences, and emerging trends.
It also provides insights into the country’s legal framework, helping iGaming companies understand how to leverage Colombia’s impressive growth potential and expanding player base in online gaming, not just for 2025, but for years to come.
Colombia’s Journey to a Regulated Gaming Industry
Online gaming in Colombia has evolved from a cultural pastime to a fully regulated industry. Before legalization in 1943, informal activities such as card games, cockfighting, and lotteries were deeply rooted in Colombian society. The 1943 legislation marked the first step toward formalizing the industry, requiring operators to pay taxes and laying the groundwork for future regulation.
Major milestones followed, including the creation of ETESA in 1993, a government agency to oversee gaming activities. While ETESA faced corruption challenges, its dissolution in 2011 led to the establishment of Coljuegos, a regulatory authority that ushered in a new era of transparency and rigorous oversight. A breakthrough came in 2016 with the eGaming Act, positioning Colombia as a pioneer in Latin America in fully legalizing online gaming. The first online gaming license was issued in 2017, setting the stage for a thriving regulated market.
Colombia’s online gaming regulations have become some of the most advanced in South America. Operators must adhere to strict KYC and AML 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 well-structured and legal online gaming market, requiring operators to establish a local presence and adhere to strict standards.
Atlaslive prioritizes safe and responsible gaming, equipping 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, money laundering, etc. Real-time analytics monitor unusual betting patterns, quickly identifying issues to protect operators and players.
To ensure compliance and platform integrity, Atlaslive offers customizable geolocation services and intuitive user management features, helping operators meet regulatory standards effortlessly. Its advanced KYC framework includes automated document checks, 3D facial recognition, and real-time biometrics, providing a secure and seamless experience. These measures, combined with powerful business analytics, enable operators to maintain transparency and create a safer gaming environment for everyone.
Colombia’s Progress Among South America’s iGaming Giants
Colombia’s online gaming market has seen steady growth, much like that of Peru. Driven by the legalization and development of online gaming, between 2017 and 2021, 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 following sector.
Colombia’s online gaming market continues to grow steadily, but compared to other South American players who are expanding rapidly across the region, it still lags behind.
By 2025-2028, Colombia is expected to account for 23-25% of the region’s GGR, positioning it as a key driver of South America’s iGaming sector.
However, the sudden jumps in regional GGR growth in 2020 and 2023 were driven to a greater extent by the dominant markets of Argentina and Brazil. These two regional giants are leading the way in South America thanks to their forward-thinking strategies and robust iGaming developments. While Colombia is a major contributor to the region’s progress, Argentina and Brazil continue to set the pace, shaping the future of iGaming on the continent with their leading market shares and innovative approaches.
iGaming in Colombia: Total revenue by three main categories and ARPU
Online sports betting has emerged as the leading category in Colombia’s online gaming market, contributing 66% of 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 here.
Colombians have a long-standing love of football, which dominates the betting scene. Major tournaments such as the FIFA World Cup, Copa America and national leagues attract huge betting interest. Fans bet on match outcomes, player performances and even live events, making sports betting an integral part of the fan experience.
In addition to football, other sports such as basketball, cycling and boxing are also popular, with Colombians keen to support their national athletes on the global stage. Horse racing and tennis are growing segments, attracting punters with their dynamic gameplay and varied betting options.
Interestingly, eSports betting is finding its niche in Colombia, particularly among younger demographics. Games such as League of Legends, Dota 2 and Counter-Strike: Global Offensive are gaining popularity. Increasing internet penetration, accessible streaming platforms and the appeal of competitive gaming events are supporting this growing trend.
As the eSports industry expands globally, the Colombian market is beginning to embrace this new style of modern betting, offering operators a chance to engage a tech-savvy audience.
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 potentially higher purchasing power among its players.
This upward trend continues through 2028, when Colombia’s ARPU is expected to reach $911, compared to the regional average of $772. Since 2020, Colombia’s ARPU has consistently outpaced the region, with the gap widening each year. This suggests better growth conditions or stronger 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. As of 2024, demand for online sports betting and online casinos appears balanced, showing that both categories share similar popularity.
With many players likely to be involved in both sports betting and casino games, there is significant potential for cross-selling and increased share in these categories. As the market matures, future growth will depend on innovation and player retention, rather than simply attracting new users.
Colombia boasts one of the highest gaming penetration rates in South America, second only to Argentina. By 2028, the overall penetration rate is expected to reach 3.9%, significantly exceeding the regional average of 2.46%. This high demand highlights Colombia’s strong position as a leader in the region’s iGaming sector, particularly in online sports betting, which will reach a penetration rate of 2.27%, followed by online casinos at 1.61%.
By 2025, Colombia is expected to rank third in South America in GGR and unique players, with an ARPU of $823 — 29.3% above the regional average. Online sports betting (79.6% GGR growth) and the growing number of unique players (62.6% growth) will drive market expansion, solidifying Colombia as a key player in the region’s iGaming scene.
Key Takeaways
Due to its strong analytical capabilities and robust foundation, the Atlaslive Platform finds South American market research valuable to enhance its customizable features and support 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 comprehensive and adaptable solutions, meeting all the essential requirements for success in online gaming. From an innovative Sportsbook and diverse casino offerings to essential tools such as Payment Hub, CRM, Bonus Engine and more, Atlaslive equips partners to remain competitive and efficient in this fast-paced industry.
In a region brimming with potential and fierce competition, Atlaslive stands out. With the right strategies and cutting-edge technologies, operators can achieve remarkable results and boost user experience. The platform leverages its advanced features to help partners thrive. Our approach to markets reflects our relationship with our partners: dedicated, customizable, and flexible.
Enter the future of iGaming with Atlaslive.
