Colombia’s Council of State has confirmed the suspension of key provisions in Coljuegos’ 2023 Advertising Resolution. For the country’s online gambling sector, it’s a significant regulatory pullback. The decision becomes final after no appeal was filed within the legal deadline, though broader litigation over the regulation continues.

Constitutional Challenges Prevail

The suspension stems from a June ruling by Colombia’s highest administrative court, which found that several articles of Regulation 20231000019054 violated constitutional principles governing economic freedom, proportional regulation, and administrative power. Law firm Sora Lawyers filed the initial challenge over two years ago. They successfully argued that Coljuegos had overstepped its authority in imposing the advertising regime.

Juan Camilo Carrasco, managing partner at Sora Lawyers, framed the confirmation as decisive relief for operators. “As no appeal was filed within the legal deadline, the Council of State declared the ruling final,” he noted in a recent statement. He highlighted the exhaustion of Coljuegos’ options to challenge the suspension.

Operational Restrictions Now Void

The suspension eliminates several burdensome obligations that had constrained operators since 2023:

  • The 20 percent cap on advertising and marketing expenses as a percentage of operator income is no longer enforceable
  • Special restrictions on new licensed operators during their initial operational years have been lifted
  • Requirements to submit annual advertising plans and quarterly expense reports have been rescinded
  • Coljuegos’ authority to impose sanctions for non-compliance, including fines of 1.5 percent of gross income or concession revocation, is suspended
  • Prior authorization requirements for share transfers between concessionaires have been eliminated

Broader Legal Principles at Stake

The ruling hinged on three constitutional doctrines that carry implications well beyond gambling regulation. The court determined that regulators cannot unilaterally impose quantitative limits on lawful economic activities, that administrative bodies cannot create autonomous sanctioning regimes without legislative authorisation, and that supervisory powers must respect private parties’ commercial confidentiality.

These principles, grounded in Articles 15, 29, and 333 of Colombia’s Constitution, establish a simple point: meaningful regulatory constraints require legislative action rather than administrative fiat. The decision suggests the court viewed Coljuegos’ advertising rules as regulatory overreach that crossed constitutional boundaries.

While this confirmation is welcome news for operators, the underlying case continues. The distinction matters: Coljuegos can still appeal the merits of the original annulment claim, meaning the advertising regulation’s ultimate fate remains unresolved. For now, admittedly, the most onerous requirements are suspended, providing meaningful commercial flexibility for licensed operators.