Colombia’s Betting Market Faces Growth Opportunities Amid Rising Tax Complexity
One year after entering Colombia by purchasing a 51% share in Zamba.co, Grupo Orenes has further consolidated its position within one of the most active regulated betting markets of Latin America. Such a move, which the company executed together with Grupo Vicca, is part of a broader and much longer-term strategy aimed at developing a solid basis in jurisdictions that are expected to maintain growth prospects in the coming years.
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“This wasn’t just about entering a market, we wanted to lay foundations in a stable market, with a good level of regulations“, stated Álvaro Remiro Chacón, Country Manager for Colombia. In his opinion, the combination of experience that Grupo Orenes accumulated globally and the expertise Vicca possesses in the local market has allowed them to go faster and easier.
A Market Defined by Digital Growth
As usual for Latin American jurisdictions, Colombia still ranks as one of the most reliable and stable betting markets in the region despite recent tax and regulatory reforms. Its strengths include solid stability and growth that can attract and encourage many online betting operators.
“Firstly, it is digital payments. Secondly, people got used to betting online; they became aware that they can bet on the Internet“, commented Remiro Chacón about the drivers of growth. Thirdly, the products themselves become richer, providing sports betting combined with live casino experience and making it more interactive.
Going forward, personalization and gamification appear to be the key trends in the future. “Our goal will be to better understand our clients and give them more personalized experience“, commented Remiro Chacón. Mobile-first philosophy seems to gain more popularity within the industry as well.
Tax Changes Add Pressure to Strategic Planning
Although everything is going smoothly at the moment, recent tax reforms introduce additional issues to operators that have to consider them during the planning process. In particular, the newly introduced tax on deposits on online platforms has affected not only investments but also the hiring process and even long-term forecasts.
“The problem with tax reform is that if the experience in the legal environment becomes too expensive or too complicated, customers may leave it for illegal operators“, stated Remiro Chacón. It is a rather pessimistic scenario considering that all participants in the process will lose, including the regulatory authority and customers as well.
As an example of a negative influence that a tax reform can have on the market, he cited European countries where high taxes led to lower market attractiveness and vice versa.
Combating Illegal Competition Remains Critical
One of the most significant challenges facing the betting sector is that customers might choose illegal operators due to higher competitiveness in the market. To avoid such situations, companies must maintain competitiveness at a certain level to minimize the possibility of expanding the shadow sector.
In addition to increasing efforts to compete with unlicensed operators, Remiro Chacón mentioned the need to limit access to them in broadcasts of sporting events. This measure may prove to be effective, provided that law enforcement takes steps in this direction.
World Cup 2026 as a Growth Catalyst
It goes without saying that the FIFA World Cup 2026 is a great opportunity for the industry since such events usually boost the number of clients, increase interaction, and facilitate cross-selling.
However, according to Remiro Chacón, “Our aim is not only to maximize revenue from the peaks but to make it fun and exciting.” Thus, focusing on quality over quantity will help develop the client’s interest in the operator’s services.
Building for the Long Term
In general, the strategy of Grupo Orenes in the Colombian market can be described as the development of a solid basis for long-term growth by concentrating on the development of products, customer understanding, retention policies, and team professionalism.
As the market environment develops, the company also focuses on further improvement of the brand while remaining open to potential new investments in the future.
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Source: SBC Noticias
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