Today, the editor of TC-GAMING will come to talk to you about the Colombian iGaming market. Speaking of Colombia may be unfamiliar to some, the 20th century was a turbulent period in Colombia's history. Until the turn of the millennium, more than 60% of the population lived below the poverty line. Over time, however, the turmoil has given way to an increasingly stable environment, and Colombia is now Latin America's fourth-largest economy. The gross domestic product reached US$7.41 billion. The proportion of people living below the poverty line dropped to 35.7%. Therefore, the first element of the investigation of the gambling platform market has been established, and the overall economy of Colombia is OK. The editor checked the World Bank and found out that Colombia’s per capita income is not low! The per capita income is more than US$6,000; nearly twice as many as Vietnam, which is currently popular. Of course there are many factors involved, but the gambling industry has contributed a lot to Colombia's GDP; Colombia, like many other Latin American countries, has relaxed gambling for the same legal purpose (including Brazil , Argentina, Mexico, and rising star Peru) have the same purpose. As we all know, the gaming industry is seen as a potential area for economic growth in many countries. Legalized gambling creates jobs, attracts foreign investment, raises tax revenues, and boosts tourism. This has become a routine operation for some countries in Latin America. Promoting economic growth through the iGaming industry has been tried and tested in many countries or cities.

Colombia is a diverse country in South America, bordering Venezuela and Brazil to the east, Ecuador and Peru to the south, the Pacific Ocean to the west, and Panama to the northwest. The country has a total population of 52.16 million (as of 2023), making it the third most populous country in Latin America. Colombia's population has grown rapidly, and the level of urbanization has continued to increase, from 57% in 1951 to 74% in 1994. Currently, Colombia has 30 cities with a population of more than 100,000, and the level of urbanization is increasing.

Colombia belongs to the medium level of development in Latin America. Colombia's GDP in 2021 was US$314.27 billion, and its per capita GDP was US$6,104. In 2022, the poverty rate will drop to an all-time low of 12.9%.

The current state of the Internet in Colombia

At the beginning of 2023, there were 39.34 million Internet users in Colombia, which means that 75.7% of the population has access to the Internet. Impressively, the number of Internet users in Colombia will increase by 1.5 million between 2022 and 2023, equivalent to a growth rate of 4.1%. This shows that Colombia’s Internet market is still in the growth stage and there is still a lot of room for development in the future.

In addition, Colombia has a total of 38.45 million social media users as of January 2023, accounting for 74.0% of the total population. From this data, we can see that almost everyone who uses the Internet uses social media. This shows that social media has become an integral part of Colombian life.

Finally, at the beginning of 2023, the number of active cellular mobile connections in Colombia reached 73.68 million, equivalent to 141.8% of the total population. This number may seem alarming, but it reflects the Internet usage habits of the Colombian population. People may use multiple smartphones or other terminals to connect to the Internet in order to use the Internet more conveniently in work or life. This also shows that Colombia’s Internet environment is quite developed.

Colombia's population

In January 2023, the total population of Colombia will be 52.16 million, an increase of 170,000 (+0.3%) compared to 2022. Among them, 50.7% are women and 49.3% are men. The urban population accounted for 82.2%, while the rural population was only 17.8%. Colombia's religion is dominated by Roman Catholicism, accounting for 90% of the total population, and other religions account for 10%. The median age of the Colombian population is 31.5 years.

The distribution of Colombia's total population by age group is as follows:

• 0 to 4 years old: 7.0% of the total population
• 5 to 12 years old: 11.4% of the total population
• 13 to 17 years old: 7.4% of the total population
• 18 to 24 years old: 11.5% of the total population
• 25 to 34 years old: 17.1% of the total population
• 35 to 44 years old: 14.7% of the total population
• 45 to 54 years old: 11.8% of the total population
• 55 to 64 years old: 10.0% of the total population
• 65 and over: 9.2% of the population

It should be noted that in Colombia, those with economic foundation aged 24-64 account for 65.1% of the total population. This means that Colombia has nearly 34 million potential users of the right age. And with the passage of time and the popularity of the Internet, this number will continue to increase. In short, Colombia has a broad population structure and many potential users of the right age, which provides a broad space for the development of the iGaming industry.

Colombian social media users

In January 2023, the number of social media users in Colombia reached 38.45 million, which is equivalent to 74.0% of the total population. According to data released by advertising planning tools of major social media platforms, 36.25 million users aged 18 and above were using social media in Colombia at the beginning of 2023, equivalent to 93.9% of the total population aged 18 and above. This number illustrates the widespread use of social media in Colombia. People not only use it for socializing but also for work, marketing, or other purposes. This is why 18-year-olds have more Internet social points than the total. It is worth mentioning that women account for 51.7% of social media users in Colombia, while men account for 48.3%. This also means that the number of women's social accounts exceeds that of men. It can be seen that in Colombia, social media plays a very important role in people's daily lives. In addition, research shows that Colombians spend a lot of time on social media, averaging around 2.5 hours daily. This data shows that Colombians are very dependent on social media, which also means that social media is one of the most important channels for communication and information acquisition in Colombia.

Colombia Facebook User Analysis

According to data released by Meta Advertising Resources in early 2023, Facebook has 33.5 million users in Colombia, equivalent to 64.5% of the country’s total population. This shows how popular Facebook is in Colombia. Even though Facebook restricts its use to people aged 13 and over, 79.0% of Facebook users in Colombia are over the age of 13, which is still very impressive. In addition, data published by Meta indicates that Facebook’s potential ad reach in Colombia will decrease by 1.7 million (-4.7%) between 2022 and 2023, and the number of users reached by ads will decrease by 1.6 million (-4.4%). This data shows that while Facebook's influence in Colombia remains strong, the number of users of the social media platform in the country has declined. This trend also shows that many people are beginning to try to find other ways to conduct online marketing or other activities. This also proves from the side that Facebook’s competitive environment in Colombia is becoming increasingly fierce.

Colombia YouTuber User Analysis

Google advertising inventory updates show that at the beginning of 2023, YouTube had 30.7 million users in Colombia, accounting for 51.6% of the total population being female and 48.4% male. This number shows that Colombian people increasingly use themselves in a digital world. Over the past year, YouTube’s potential ad reach in Colombia has increased by 300,000, a significant increase that means more people are being exposed to YouTube ads.

YouTube's potential advertising reach in Colombia increased by 300,000 (+1.0%) from 2022 to early 2023, meaning more Colombians are turning to digital media to meet their needs. This trend indicates that digital media will continue to grow in the coming years.

As can be seen from this data, YouTube and FB have almost the same user base in Colombia; that is, if you advertise on FB, then you can consider advertising on YouTube to attract more potential customers. This is a very noteworthy trend as it means that more and more people are using digital platforms for information and entertainment, which will impact future iGaming marketing strategies.

Colombia Instagram User Analysis

According to figures released by Meta Advertising Tools, the number of Instagram users in Colombia has reached 17.75 million, equivalent to 34.2% of the country’s total population. Among Instagram advertising audiences, women account for 55.9%, and men account for 44.1%. It is worth mentioning that compared with last year, the number of Instagram users decreased by 550,000, a decrease of 3.0%. This downward trend may be due to the growth of TikTok in the local market, as more and more people start using TikTok to share their lives and ideas.
In addition, Instagram users in Colombia are mainly concentrated in people between the ages of 18 and 34, accounting for more than 60% of the total number of users. Therefore, if you are an iGaming platform marketer, you can consider developing a marketing strategy for this age group on Instagram to get better results.

Colombia Tiktok User Analysis

According to data released by Bytedance Advertising Resources, in early 2023, TikTok had 20.11 million users aged 18 and above in Colombia, with advertising coverage equivalent to 51.1% of the local Internet user base, regardless of age. It is worth noting that among these users, 59.8% are women, and 40.2% are men. These data show that TikTok’s audience in Colombia is mainly female, and the number of users is showing a rapid growth trend. Additionally, TikTok’s potential ad reach in Colombia increased by 6.5 million over the past year, a comparable increase of 47.4%. From October 2022 to January 2023, the potential reach of TikTok ads in Colombia increased by 1.9 million, an increase of 10.2%. These data show that TikTok users are growing rapidly in Colombia, which may also explain why the number of Instagram users is declining.

Colombia Facebook User Analysis

As of early 2023, Facebook Messenger has 20.45 million users in Colombia, and its advertising coverage is equivalent to 39.4% of the country's total population. This also equates to 52.0% of the local internet user base (regardless of age), with 51.8% women and 48.2% men. It’s worth noting that Meta’s inventory only publishes audience gender data for “female” and “male” users.

The size of Facebook Messenger’s potential advertising audience in Colombia appears to have declined over the past year. According to reports, Facebook Messenger’s potential ad reach in Colombia will decrease by 300,000 people (-1.4%) between 2022 and 2023, while ad audience size will decrease by 850,000 people (-4.0%), a trend that is consistent with Facebook The number of users is on a downward trend. Despite this, Facebook and Messenger are still the main business marketing channels in Colombia.

Colombia LinkedIn User Analysis

As of early 2023, LinkedIn has 12 million registered “members” in Colombia, according to data published in LinkedIn’s inventory. The figures show LinkedIn's growing user base in Colombia, making it one of the most popular social media platforms in the country.

It should be noted that LinkedIn publishes audience coverage data based on the total number of registered members, not the number of users of advertising coverage data released by other social media platforms. The LinkedIn audience in Colombia is estimated to be equivalent to 23.1% of the population. Additionally, LinkedIn's ad reach at the start of the year was equivalent to 30.5% of the local internet user base, regardless of age. In addition, the gender distribution of LinkedIn users is relatively balanced, accounting for 49.5% of women and 50.5% of men. However, it is important to note that the use of LinkedIn is restricted to people aged 18 and over, which equates to 31.1% of “18+” Internet users in Colombia.

It is worth mentioning that LinkedIn’s potential advertising reach in Colombia increased by 2 million from 2022 to 2023, a growth rate of 20.0%. On a quarterly basis, LinkedIn's advertising audience size in Colombia increased by 1 million from October 2022 to January 2023, a growth rate of 9.1%. This shows that more and more Colombians are looking for job opportunities through the Internet, and Internet usage in Colombia is also rising.

Colombia Snapchat User Analysis

According to data published in Snap's inventory, Snapchat will have 6.15 million users in Colombia by early 2023. Advertising coverage is equivalent to 11.8% of the total population. But it’s important to note that 72.7% of Snapchat’s advertisers in Colombia are women, compared to 26.3% of men. It can be said that Snapchat has the highest proportion of female users in Colombia. Snapchat is also a great marketing channel if the iGaming platform is targeting women.

Mobile connectivity in Colombia

Colombia will have 73.68 million cellular connections by early 2023, equivalent to 141.8% of the population, according to GSMA Intelligence. Between 2022 and 2023, the number of mobile connections will increase by 7 million (+10.5%).

(Many people use more than one mobile connection - for example, they may have one connection for personal use and another for work or other purposes. Therefore, the number of mobile connections can exceed the population.)

According to GSMA Intelligence, Colombia will have 73.68 million cellular connections by early 2023, which is equivalent to 141.8% of the country's total population. Compared to 2022, this means an increase of 7 million mobile connections, a growth rate of 10.5%. It should be noted that many people use more than one mobile connection. They may have one mobile connection for personal use and another for work or other purposes. As a result, the number of mobile connections exceeds the population. This also illustrates the rapid development of Colombia's mobile communications market, with people increasingly relying on mobile devices and the Internet. Due to the spread of mobile connectivity, economic, social, cultural, and lifestyle changes in Colombia will bring more opportunities for gaming platforms to operate.

The current state of gambling in Colombia

The gaming industry has long been viewed as a potential economic growth area for Colombia. The authorities encourage the development of the industry and hope to create jobs and increase tax revenue through gambling. The gambling market in Colombia has grown rapidly over the past few years. The Colombian government has established an agency, Coljuegos, to supervise and manage various gambling business areas, including various types of gambling, offline casinos, offshore operators, etc.

Colombia’s gaming regulator, Coljuegos, mentioned in its 2022 gaming financial performance report that Colombia’s gaming industry earned $175 million in 2022, an 18% increase from 2021.

iGaming has always been a leading industry in Colombia, and Law 643 of 2001 was the main regulation that opened the door to the prospect of legal gambling in Colombia. Colombia’s iGaming industry has experienced tremendous growth since the eGaming Bill was passed in October 2016. However, offline casinos, sports, and bingo accounted for the highest revenue in 2022, accounting for US$70.3 million, an increase of 33% from 2021, mainly because offline electronic slot machines contributed a lot. Meanwhile, iGaming revenue was $56.1 million. According to Coljuegos President César Augusto Valencia Galiano, the entire Colombian gaming industry is growing in volume and licensing. Another report from Coljuegos, the Colombian gambling regulator, mentioned that “17 operators are authorized by Coljuegos, and as of August 2022, there are 7,004,174 gambling member user accounts reported.” (PS: In fact, we are not included in this number. It can also be seen that the authorities know that there are 7 million members, but what about the unknown ones that have not been counted? The information behind this may be a bit large.)

The report also stated, "iGaming has maintained a positive and optimistic growth trend in the past few years." In Colombia, nearly US$1.6 billion was bet in 2020, and US$3.3 billion was bet in 2021; so far in 2022, online betting has been reported to total US$4.3 billion. (PS: The editor of TC-GAMING has not yet obtained the data for 2023, but it is not difficult to imagine that in last year’s Qatar 2022 World Cup, it is estimated that it will not be less than US$5.4 billion because Colombian authorities are also optimistic about this US$5.4 billion projected.)

Columbia White Label iGaming

Colombia is a pioneer in Latin America when it comes to gaming. As the first and only country in Latin America to introduce a comprehensive regulatory framework for iGaming, it also sets an example for neighboring countries to learn from and emulate. With these transparent regulations in place, the Colombian gaming industry’s gross gaming revenue is expected to grow to US$806 million by 2026. This shows that the potential of the Colombian gambling industry is huge.

Gambling companies in Colombia are allowed to offer almost all types of gambling games, with the exception of certain lotteries, which are banned and run exclusively by state-owned companies. At the same time, the gaming industry is regulated by the government gaming authority Coljuegos. Colombia thus has a near monopoly on the industry but allows individual bookmakers to operate through granted franchises. Franchised operators must pay an "operating right" or royalty fee equal to 12 percent of their gross gaming revenue. Franchise contracts are valid for three to five years. (PS: This kind of practice in Colombia can almost be regarded as gambling in the Philippines or Dubai gambling and offshore gambling franchises in other countries. Therefore, there are iGaming companies and numerous iGaming operating companies in Colombia engaged in the gambling industry in Colombia-related business activities.)

Coljuegos Colombia offers a single type of B2C gaming license covering all types of games (card games, offline games, online slots, sports betting, etc.). The license is valid for three to five years.

Colombian authorities are also getting tough on unlicensed operators as iGaming regulations are fully implemented.Coljuegos and authorities in 2001 monitored the internet and blocked unlicensed or offshore sites. According to reports, in the first half of 2022, 1,577 gambling platforms operating without a license have been blocked for half a year. (PS: From this point, we can't see the popularity of gambling in Colombia, which is quite hot.)

Colombia White Label iGaming Choices

Although Colombia’s gaming market environment has been favorable in recent years and is an emerging gaming market, the public’s awareness of gambling is widespread and insensitive. It can be said to be a promising gambling market. But if you want to enter the Colombian gaming market, gaming investment tycoons need to make more considerations from the localization perspective.

1. Language localization: If you just copy a betting platform and immediately run it on the Colombian betting market through text translation, it is not much better than throwing your investment into the water. So, language localization is also an important factor. TC-GAMING employs 18 local language experts for translation, enabling the iGaming platform to quickly integrate into the local market.
2. Local user preferences: Players from different cultures have their own sense of user experience and will respond differently to different marketing activities and methods. The Latin American gambling market is unique, and new iGaming platforms must consider the preferences of local audiences when entering new markets. TC-GAMIONG has the most comprehensive automated event discount system on the market for event holding, which can give bonus points, lottery tickets, turntable games, registration, recharge, downloads, tasks, lottery draws, check-in, etc. You only need to set your event time, event type, reward method, total event budget, and other simple steps, and the system will automatically complete it.
3. 24/7-hour technical support and the value-added services of TC-GAMING's exclusive membership channel allow you to keep abreast of market information, and TC-GAMING’s big data market analysis reports help you stay at the forefront of the market.
4. Diversified and high-quality gambling game portfolio: iGaming platforms must also integrate a diverse portfolio of gambling games to provide the best user experience. TC-GAMING has 24/7 hours of technical support and exclusive member channel services, allowing you to keep abreast of local market trends and TC-GAMING big data market analysis reports, enabling you to enter the Colombian iGaming market with ease.
5. The iGaming platform operates stably: In addition to daily operations, server security is also a top priority. In addition to anti-hijacking of domain names at all levels, SSL encryption certificates, and national firewalls, TC-GAMING also provides a 24/7-hour professional operation and maintenance team for real-time monitoring to prevent various new hacker attacks. At the same time, new-generation firewall technology (NGFW) is used to prevent DDOS attacks.

What types of gambling games do Colombians like?

In Colombia, much like the rest of Latin America, sports betting is their favorite type of betting. At the same time, profits are higher, and the user field is more vertical. In Latin America, Colombians make up one of the largest groups of sports gamers: according to research by TGM data, 39% of Colombian respondents bet on sports events at least once a week, and 40% bet at least once a month. Therefore, it can be said that 55% of people in Colombia have participated in sports betting.

At the same time, the Coljuegos report of the Colombian gaming regulator shows that sports betting is still dominant in Colombia, accounting for 51%, followed by slot machines at 20%, live casinos at 15%, roulette at 7%, and the rest. Percentages are poker, baccarat, bingo, and virtual games.

In the choice of sports types, football is undoubtedly the most popular type of sports betting. The Colombian national football team ranks 12th in the FIFA world rankings, but the Colombians could be in the top 10 if ranked by their passion for football. The Colombian national team has also participated in some regional football events, such as the Copa Libertadores, Copa America, Serie A, local football leagues, and the Colombian Cup. They are regulars in Colombian football. Therefore, in this environment of national football fever, sports betting platforms will be the best choice to enter the Colombian betting market. After all, in Colombia, the density of sports user groups is very high.

While sports betting is dominant in Colombia, Colombians are also passionate about live casino games. Live casino is the second most popular type of betting after sports betting.

Meanwhile, sports betting remains dominant in Colombia at 51%, followed by live casino and slot machines at 35%, roulette at 7%, and the remaining percentages in Colombia, according to a report by Colombian gaming regulator Coljuegos. Poker, Baccarat, Bingo, and virtual games. (The caveat here is that online slot machines generate a larger share of gross gaming revenue in the Colombian iGaming industry than live slots.)

Columbia online payment method

In Europe, iGaming platforms may accept credit cards such as Visa, Mastercard, American Express, etc., but in Latin American countries, this is not enough, especially in Colombia. Studies show that while 45% of people have a bank account, only 28% have a credit card. Fortunately, the development of the Internet and the advent of the digital age have provided more channels for online payment. TC-GAMING editor lists the following payment methods for everyone. These payment channels are very common among Colombians:

1. Credit Cards: Major credit card brands such as Visa, MasterCard, and American Express are widely accepted in Colombia. Credit card details that can be used to make online payments.
2. Debit Cards: Colombian debit cards, such as Visa Debit and MasterCard Debit, are also a common online payment method. Payment can be made using the bank account linked to the debit card.
3. Prepaid Card: A prepaid card (such as Visa Prepaid and MasterCard) is a pre-loaded card that can be used for online payments. You can use the funds on your prepaid card for online shopping and payments.
4. E-wallets: Some e-wallet platforms in Colombia, such as PSE (Pago Seguro en Línea) and DaviPlata, allow users to deposit funds into electronic accounts and use these funds to make online payments.
5. Payment platforms: There are a number of third-party payment platforms in Colombia, such as PayU and Mercado Pago, that offer online payment solutions, including accepting credit cards, debit cards, and other payment methods.

Summary

Although the iGaming market is becoming increasingly competitive, the Colombian gaming market still offers many opportunities for gaming platforms. Colombia's gaming market is guided by sports culture, and at the same time, cooperates with the transparency of gaming by the Colombian authorities and also has a regulatory framework for compliance. It can be said that Colombia is the place for online gambling of any size. The reasons are as follows:

1. Due to the policy direction of the authorities, the Colombians use gambling to attract investors, expand the country's tourism industry, and solve the employment problem of the population. At the same time, it increases the income of the country. Therefore, Colombians are no strangers to gambling and do not reject it. In fact, Colombians have a positive attitude towards gambling.
2. The income of Colombians is not bad, and the country’s economy and personal income fully meet the living conditions of gaming platforms. Colombians' average income (GDP per capita) is US$6,104, much higher than that of Vietnam (US$3,756). With improved living standards, Colombians will consider spiritual satisfaction, and gambling is a good place to provide entertainment.
3. Colombians love sports, especially football. Colombia's football ranks 12th in the world, reaching 3rd in the world in 2016. The popularity of football in Colombia is self-evident, so betting platforms can capitalize on this by offering various football-related betting options.
4. Colombia has a fast-growing internet and a stable political situation. According to the latest data, the number of Internet users in Colombia has reached 30.03 million, accounting for 61.8% of the country's total population. This means that iGaming platforms can use the Internet to expand their influence. At the same time, the Colombian government is also actively promoting the development of the Internet, providing a better environment for gaming platforms.

But entering the Colombian iGaming market is easier said than done for betting platforms. In the future, gambling platforms may experience challenges in a period of confusion. Therefore, having a solid package network partner is of the utmost importance. TC-GAMING provides a one-stop service to help save time and costs. It only takes 10 minutes to open the website, allowing you to enter the operation of the Colombian market quickly. There are over 10,000 events every month, as well as thousands of video games. Whether you are a sports fan or a slot machine user, you can find your favorite game type on the platform. TC-GAMING has been deeply involved in the industry for 16 years and has received unanimous praise and recognition from thousands of gaming platform leaders. I believe that TC-GAMING will be your best partner when entering the Colombian iGaming market.