Ecuadorian authorities have put to a referendum the question of legalizing casinos in five-star hotels
Current President Daniel Noboa has included the legalization of gambling establishments as one of seven key points in his agenda for economic and social reforms. Under the proposal, casinos would be permitted to operate only within five-star hotels, and a 25% tax on their revenue would be levied to fund social programs.
Experts believe that if the referendum passes, casinos will return to Ecuador rapidly. Juan Carlos Losa Mendoza, head of the Latin American division of ProntoPaga, stated, "The first establishments could open within three months after the vote. Sports betting sites and online casinos are already operational, and payment systems are capable of processing transactions."
Despite the ban on land-based gambling establishments that has been in place since 2011, the iGaming industry in Ecuador remains legal. In July 2024, the government imposed a 15% tax on gross revenue from online casinos and winnings. Additionally, authorities lifted restrictions on advertising for betting companies.
Former Vibra Gaming CEO Ramiro Atucha described the strategy of placing casinos in five-star hotels as sensible, emphasizing that it would attract significant foreign investment. "Ecuador has a dollarized economy with 20 million residents. It’s a small but stable and attractive market for operators," he noted.
If the referendum is approved, Ecuadorian authorities will be able to unify the regulation of land-based casinos and the iGaming sector, attract international investors, and secure additional tax revenues. This would mark a significant step toward formalizing and legalizing the entire gambling industry in the country.
Meanwhile, the New Zealand Parliament has approved a bill to legalize online casinos.
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