SBC News Ecuador President ends gambling ad ban
Daniel Noboa:

Ecuador President ends gambling ad ban

Daniel Noboa, President of Ecuador, has re-authorized the advertising of sports betting and gambling on media networks across the Andean nation.

The decision follows President Noboa’s withdrawal of specific articles of Executive Order 421, which had been imposed on Ecuador’s Organic Law on Communication by the former government of Guillermo Lasso Mendoza in 2023.

After taking office in January 2024, Noboa ordered a constitutional review of Ecuador’s laws, which had banned land-based casinos and bingo halls since 2011, while providing no legal framework to govern online gambling activities.

A referendum in 2011 allowed former President Rafael Correa to ban land-based casinos, bookmakers, and bingo halls, a decision that opponents argue has harmed the tourism industry.

Although land-based gambling is banned, constitutionally there are no explicit laws prohibiting online gaming, creating ambiguity in the regulation of the sector.

A registry for gambling and sports betting companies was established in July following the approval of the Law of Economic Efficiency and Job Creation by Ecuador’s Internal Revenue Service (SRI).

The SRI set rules on deadlines, sales, retention vouchers, and requirements for registering in the Single Registry of Taxpayers (RUC) to apply the single income tax.

New rules established a 15% gross revenue tax for all operators, regardless of whether the companies are based in Ecuador or offshore, together with a 15% levy on player winnings.

Experts believe that while this will stimulate economic growth, there are concerns about its impact on public welfare and addiction rates, especially among vulnerable populations. César Ricaurte, Director of Fundamedios, expressed apprehension about media outlets becoming reliant on funds from gambling companies, which already dominate the advertising space, particularly in football.

President Noboa’s administration has signalled that it remains open to further reforms, especially regarding the regulation of gambling to raise funds for Ecuadorian sports initiatives and welfare projects.

The president’s attempts to hold a national referendum to regulate the gambling sector were disrupted by civil unrest earlier in the year, but the issue is far from being resolved.

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