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BetRivers parent company Rush Street Interactive faces renewed tax risk after Colombia’s government proposed a 19% value-added tax on player deposits beginning in 2027.
The proposal, introduced Oct. 29, would apply through Article 41 of a planned fiscal-reform act. It follows RSI’s expectation that Colombia’s existing deposit VAT would expire at the end of 2026.
“I don’t want to spike the ball just yet,” CFO Kyle Sauers said during RSI’s Oct. 28 earnings call.
Deposit Tax Could Pressure RushBet Profitability
Jefferies Equity Research analyst David Katz assessed the proposal in an Oct. 30 investor note. He described it as “effectively recreating the tax structure RSI faced in 2025.”
RSI’s 2027 financial outlook had assumed a return to Colombia’s 15% tax on gambling revenue. A deposit-based tax creates a substantially greater economic burden,” Katz said.
Under the previous VAT, RSI largely shielded RushBet customers through additional bonuses rather than reducing their playable balances, Katz said. That approach created a profitability headwind.
Katz estimated that player spending could flatten or fall as much as 30% under a deposit-based VAT. He also warned that profitability could face pressure if RSI again uses bonuses to protect customer balances.
Colombia Proposal Requires Legislative Votes
The proposal must pass legislative committees and votes in both houses of Colombia’s parliament, Katz said. His assessment centers on whether lawmakers retain deposits as the tax base or shift to gambling revenue.
The previous administration’s VAT faced judicial scrutiny. Colombia’s legislature also rejected that administration’s attempt to extend it.
RSI executives had previously described the incoming government as “pro-business” on multiple occasions.
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Source: As reported by COMPLETE iGAMING.
