Date: October 25, 2023, 06:58h.
Last updated on: October 25, 2023, 06:58h.
In a significant development for Colombia’s gambling industry, the country’s gaming regulator, Coljuegos, has gained additional powers. These new powers allow Coljuegos to regulate and control advertising, sponsorships, and commercial communications in the online gaming sector.
The new measures outlined in an official document cover the marketing strategies of all online operators. It also includes provisions for the bidding processes and payments applicable to online players.
Effective from January 1, 2024, these regulations signify a new era in the marketing landscape of Colombia’s gaming industry. Coljuegos aims to establish clearer guidelines for the market.
Coljuegos Strengthens its Authority
The document emphasizes that Coljuegos assumes a pivotal role in overseeing the advertising landscape within the industry. It references “Law 643 of 2001,” which grants the State exclusive authority over all forms of luck and chance games.
These upcoming regulations will apply to all operators in the Colombian gaming market, provided they hold the necessary Coljuegos license. This license requires compliance with the regulatory standards set by the entity. The regulations cover “all forms and content of communication that aims to influence consumer decisions” in the realm of gambling.
Recognizing the increasing prevalence of gambling advertising across various platforms, there is a recognized need to intervene in the operations of gambling operators. Coljuegos now has written authority to control the amounts, spaces, and methods used in promoting online gambling platforms.
The document includes comprehensive guidelines, including the mandatory identification of advertisers and the prohibition of endorsing illicit practices. It also imposes limitations on marketing expenditure, linking them to the gross gaming revenue (GGR) and other operator-specific variables.
New operators will face restrictions during their first six months. During this period, they can allocate up to 20% of the projected GGR for each contract year towards promotion and advertising. All companies must provide Coljuegos with a detailed marketing investment plan in monetary terms.
In an effort to enhance transparency and oversight, Coljuegos has the authority to request relevant information on a quarterly basis. The regulations also extend to sports sponsorships, limiting the financial commitments based on established limits.
Corruption Allegations Against Coljuegos
As Coljuegos continues to shape Colombia’s gaming industry landscape, it is faced with negative publicity of its own. The Ministry of Finance has raised concerns about corruption in the awarding of contracts for Games of Luck and Chance (JSA) operations.
Part of the JSA involves in-person activities in different casinos, including slot machines. Coljuegos oversees this process and collects about COP500 million (US$118,550) from the JSAs.
The investigations focus on concessions awarded between 2018 and 2022. According to the Ministry of Finance, in some cases, Coljuegos officials only approved the concessions after facing threats of bodily harm and extortion.
The situation is delicate, with Coljuegos President Emilio and other senior officials seeking police protection until the investigation is resolved. Allegedly, they have been receiving threats in an attempt to obstruct the investigation. Hincapié took office only this past summer, making this a less-than-warm welcome.