Momentum for Sports Betting in Ecuador

On May 15, 2023, the government of Ecuador presented a tax reform bill proposing to create a single tax on revenues received by sports betting operators legally resident in the country. Two days later, Parliament was dissolved, and new elections will be held. Although the tax reform bill has many flaws in its design and scope, it is subject to a favorable ruling by the Constitutional Court, which means practically legalizing Sports Betting in Ecuador.

All forms of gambling were made illegal almost a decade ago in the South American nation of Ecuador. Before the 2011 gambling ban, regulated casinos had operated in Ecuador since 1949. The change in law was based on a referendum with close results, leading to around 50 casino closures and the loss of an estimated 20,000 jobs. The ban mainly addressed land-based casinos and other gambling organizations. However, the online sector has been in a relatively gray zone.

Football is the most popular sport in Ecuador and the most popular sport to bet on. In 2021, over 1 million bets were placed on football in Ecuador, followed by basketball with over 500,000 bets. Other popular sports that registered significant bets placed were Tennis, Volleyball, and Boxing. The popularity of sports to bet on can vary depending on the time of year. For example, football is the most popular sport to bet on in Ecuador during the World Cup. Still, it is less popular to bet on during the off-season.

Until now, the Ecuador National Lottery (Loteria Nacional) owns the legal Sports Betting platform. Founded in 1888 and headquartered in Guayaquil, Lotería Nacional offers a variety of lottery games, including draw games, instant games, and an online sports betting platform. It is regulated by the Superintendency of Companies, which ensures that the lottery is conducted fairly and transparently. The Superintendency of Companies also works to protect consumers from gambling addiction and other risks associated with gambling.

On May 17, 2023, through Decree 741 and under Article 148 of the Constitution of Ecuador, President Lasso dissolved the Parliament under the “cross death” figure, implying that the Executive and the Legislative Powers are dissolved, and new elections must be held. During this time, the President governs through Decrees. Two days later, he issued Decree 742 for the “strengthening of the family economy,” creating the Sports Betting Tax with a rate of 15%.

Although the tax reform bill has many flaws in its design and scope, it is subject to a favorable ruling by the Constitutional Court, which means practically legalizing Sports Betting in Ecuador.