Colombia Court Confirms Suspension of Coljuegos Advertising Limits
Colombia Council of State Confirms Suspension of Coljuegos Advertising Limits – Online Gaming Operators Relieved of Spending Caps and Reporting Duties
Key Takeaways
- Colombia’s Council of State confirmed the partial suspension of Coljuegos Resolution 20231000019054 issued in 2023.
- The suspension became final after no appeal was filed within the legal deadline.
- The 20 percent cap on advertising spending tied to gross gaming revenue is suspended.
- Operators are no longer required to submit annual advertising plans or quarterly marketing expense reports.
- Several sanctioning provisions and prior authorization requirements related to share sales are also suspended.
Council of State Confirms Partial Suspension of 2023 Advertising Resolution
Colombia’s Council of State, the country’s highest administrative court, has confirmed the partial suspension of Resolution 20231000019054. The measure was issued in 2023 by gambling regulator Coljuegos and introduced limits and sanctions related to online gaming advertising.
The confirmation follows the expiration of the legal deadline to file an appeal. According to Juan Camilo Carrasco, manager at law firm Sora Lawyers, no appeal was submitted within that period. As a result, the precautionary suspension ordered by the Council of State is now final at this stage of the proceedings.
Sora Lawyers had filed the annulment lawsuit against the resolution. Carrasco described the confirmation of the partial suspension as a significant development for the sector.
Although the precautionary measure is now confirmed, the substantive issues of the case remain pending. The Council of State is expected to address those matters in a future final ruling.
20 Percent Advertising Cap Based on Gross Gaming Revenue Suspended
One of the central provisions affected by the court’s decision is Article 6 of the resolution. This article established a quantitative limit on advertising expenditure for licensed online gaming operators.
Under the original rule, marketing investment was capped at 20 percent of gross gaming revenue. With the suspension confirmed, this spending cap is no longer in force while the case continues.
For operators, this means that advertising budgets are no longer restricted by a fixed percentage linked to revenue. The suspension removes a direct financial constraint that had been introduced by regulatory resolution rather than by legislative act.
Annual Advertising Plans and Quarterly Reporting Requirements Lifted
The Council of State also confirmed the suspension of Article 7 of the resolution. This provision had required operators to submit an annual advertising plan to Coljuegos.
In addition, operators were obliged to provide quarterly reports detailing advertising-related contracts, invoices, and expenses. With the suspension of Article 7, these reporting duties no longer apply.
The removal of these requirements reduces the volume of commercial information that operators must submit to the regulator in connection with marketing activities. According to the arguments cited by Sora Lawyers, this aspect was relevant to constitutional protections concerning commercial information.
Sanctioning Powers and Contract Renewal Measures Suspended
The confirmed suspension also affects Article 9, specifically sections a, b, and c. These sections had granted Coljuegos authority to impose sanctions for non compliance with the advertising rules.
The suspended sanctions included the possibility to refuse renewal of a concession contract, to impose fines equivalent to 1.5 percent of gross revenue, or to unilaterally terminate concession contracts.
With these sections suspended, Coljuegos cannot apply those specific penalties in connection with the contested advertising provisions while the judicial review continues.
In addition, Article 10 section f has been suspended. This section required prior authorization from Coljuegos for certain share sale transactions involving concessionaires. The suspension removes that pre approval obligation in the context defined by the resolution.
Constitutional Arguments Cited by the Claimant
Juan Camilo Carrasco outlined three lines of argument that, according to him, were adopted by the Council of State when ordering the precautionary suspension.
First, the decision refers to the principle of legal reserve in matters concerning economic freedoms, as established in Article 333 of the Colombian Constitution. According to this principle, a regulator cannot impose a quantitative limit on a lawful economic activity if such a decision falls within the powers of the legislature.
Second, the ruling upholds the principle of legal reserve in sanctioning matters under Article 29 of the Constitution. This principle limits the State’s punitive powers and prevents the creation of autonomous sanctioning regimes through administrative resolutions.
Third, the decision reinforces constitutional protection of commercial information under Article 15 of the Constitution and Constitutional Court Ruling C 165 of 2019. According to the arguments cited, the State’s supervisory powers have limits when dealing with sensitive commercial information held by private parties.
Our Assessment
The Council of State’s confirmation of the partial suspension removes several key obligations introduced by Coljuegos in its 2023 advertising resolution. These include the 20 percent cap on marketing expenditure linked to gross gaming revenue, mandatory submission of annual advertising plans, quarterly reporting of marketing expenses, specific sanctioning powers, and prior authorization requirements for certain share transactions.
While the precautionary suspension is now final due to the absence of an appeal, the underlying legal dispute has not yet been definitively resolved. The Council of State will issue a final ruling on the substantive legality of the resolution at a later stage. For now, the affected provisions remain suspended, and operators are not required to comply with them during the ongoing judicial review.
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