Rush Street Interactive (RSI) noted in a regulatory filing on February 19, 2025, that the Colombian President Gustavo Petro declared a state of internal commotion on January 24. This decree granted him emergency powers to issue financial decrees.
On February 14, 2025, in support of this internal commotion, a temporary 19% Value Added Tax (VAT) on player deposits in Colombia was instituted via decree. This tax is assumed to remain in effect through the end of 2025.
RSI stated that this temporary VAT tax may decrease the company's revenue in Colombia. The tax has necessitated higher bonusing, which negatively impacts net revenue despite strong underlying Gross Gaming Revenue (GGR) growth in local currency.
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