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EC

Is Gambling Legal in Ecuador?

Partially Regulated
Sports betting is regulated with licensing and taxation; other forms of gambling remain generally prohibited or unregulated.
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    Key Information Highlights Legislation Timeline Requirements Sources

    Key Information

    Last Update 2025
    Regulatory Authority Ministry of Sports
    License Cost Varies

    Regulation by Activity Type

    Casinos Prohibited
    Online Casinos Prohibited
    Betting Regulated
    Online Betting Regulated
    Lotteries Prohibited
    Poker Prohibited

    Highlights

    • Ecuador banned land-based casinos and bingo halls in 2011, but is now moving to legalize and regulate gambling.
    • A new sports betting license is required for both resident and non-resident operators, issued by the Ministry of Sports.
    • The annual license fee for sports betting is $307,850, calculated as 655 times the unified basic salary.
    • Licenses are valid for five years and renewal follows the same fee and requirements as initial acquisition.
    • Operators are subject to a 15% income tax on gross income minus player winnings, plus a 15% withholding tax on player prizes.
    • Non-compliant operators risk having their websites blocked under the new regulatory regime.
    • Players must declare winnings for tax purposes but receive annual tax credits from operator withholdings.
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      Legislation

      Primary Legislation

      The core legal framework governing gambling in Ecuador is established through executive decrees and national laws that explicitly regulate or prohibit gambling activities. The primary legislation currently in force includes:
      • Executive Decree 487: This decree, enacted under the authority of the President of Ecuador, serves as the main regulatory instrument for sports betting in the country. It sets out the legal basis for the licensing, operation, and taxation of both resident and non-resident sports betting operators. The decree outlines the requirements for obtaining a license to operate sports betting and establishes the Ministry of Sports as the issuing authority. It also defines the unique income tax regime applicable to sports betting activities.
      • General Prohibition on Land-Based Gambling: Since 2011, Ecuador has maintained a statutory ban on most forms of land-based gambling, including casinos and bingo halls, through national legislation. This prohibition remains in effect, although recent regulatory developments have focused on legalizing and structuring online sports betting.
      Other forms of gambling, such as casinos and bingo halls, remain prohibited unless new legislative changes are enacted. The legal framework for gambling is supplemented by related fiscal and administrative regulations, but the above instruments constitute the primary legal structure for gambling regulation in Ecuador.

      Regulatory Authority

      The principal regulatory authority responsible for overseeing gambling activities in Ecuador is the Ministry of Sports. This body has been designated by executive decree to administer and enforce the legal framework for sports betting, including the issuance and renewal of licenses, as well as the supervision of operator compliance with national laws.
      • Issuing and renewing licenses for sports betting operators
      • Monitoring and enforcing compliance with gambling legislation and regulations
      • Overseeing the implementation of the unique income tax regime for sports betting
      No separate gambling commission or independent regulatory agency currently exists; the Ministry of Sports holds the central role in the regulation and supervision of legal gambling activities in Ecuador.

      License Types

      Types of Gambling Licenses Available in Ecuador

      • Sports Betting License: As of 2025, Ecuador offers a specific license for sports betting operations. This license is available to both resident and non-resident operators. Other forms of gambling, such as casinos and bingo halls, remain prohibited or unregulated at the national level.

      Application Process for Sports Betting License

      • Regulatory Authority: The Ministry of Sports is responsible for issuing sports betting licenses in Ecuador.
      • Eligibility: Both resident and non-resident companies are eligible to apply for a license to operate sports betting activities.
      • Application Submission: Applicants must submit their documentation and application directly to the Ministry of Sports. The specific documentation and procedural requirements are determined by the Ministry and may include company details, operational plans, and proof of financial capability.
      • Self-Registration System: The licensing framework operates as a self-registration system, streamlining the process for both local and international operators.

      License Duration and Renewal Conditions

      • Validity Period: The sports betting license is valid for five years from the date of issuance.
      • Renewal: The license must be renewed every five years. The renewal process requires payment of the annual fee and compliance with all ongoing regulatory requirements set by the Ministry of Sports.

      Licensing Costs and Financial Requirements

      • Annual Fee: The annual cost of a sports betting license is set at 655 times the unified basic salary (SBU) of Ecuador. For 2025, with the SBU at $470, the annual fee amounts to $307,850.
      • Payment Terms: The annual license fee must be paid to the Ministry of Sports within the first 20 days of each fiscal year during the license’s validity.
      • Renewal Fee: The same annual fee applies for license renewals.

      Key Requirements for Obtaining and Maintaining a License

      • Compliance: Operators must comply with all regulations and requirements established by the Ministry of Sports. Non-compliance may result in license revocation and blocking of the operator’s website.
      • Operational Standards: License holders are expected to maintain operational integrity, including responsible gambling measures and secure handling of player funds.
      • Reporting: Operators may be required to submit regular reports to the Ministry of Sports regarding their activities and financial performance.
      • Renewal Conditions: To maintain the license, operators must continue to meet all regulatory requirements and pay the annual fee on time.

      Summary Table: Sports Betting License in Ecuador

      Aspect Details
      Type Sports Betting License
      Regulatory Authority Ministry of Sports
      Eligibility Resident and non-resident operators
      Validity 5 years
      Annual Fee (2025) $307,850
      Renewal Every 5 years, with annual fee payment
      Application Process Submission to Ministry of Sports; requirements as determined by ministry
      Key Requirements Compliance with regulations, timely fee payment, ongoing reporting

      Gambling Tax

      Tax Rates for Gambling Operators in Ecuador

      • Sports betting operators in Ecuador are subject to a unique income tax regime, which imposes a 15% tax rate on the operator's gross income minus player winnings.
      • Additionally, there is a 15% withholding tax applied to player prizes. Operators are responsible for withholding this tax from player winnings that exceed the amount wagered within a monthly period.
      Type of Tax Tax Rate Tax Base
      Operator Income Tax 15% Gross income minus player winnings
      Withholding Tax on Player Prizes 15% Player prizes (winnings exceeding bets per month)

      Basis for Taxation

      • The 15% operator income tax is calculated on gross gaming revenue (GGR), defined as the total amount of bets received minus the total amount paid out as player winnings.
      • The 15% withholding tax is calculated on the net winnings of players, specifically on amounts where the value of correct guesses in a month exceeds the value of bets placed.

      Tax Reporting and Payment Requirements

      • Operators must pay the annual license fee of $307,850 (equivalent to 655 unified basic salaries) to the Ministry of Sports within the first 20 days of each fiscal year during the license’s validity.
      • Both resident and non-resident operators are required to obtain a license from the Ministry of Sports; non-resident operators are no longer required to register with the Unique Taxpayer Registry (RUC).
      • Operators are responsible for withholding the 15% tax on player prizes and remitting it to the tax authorities. Players are required to declare any winnings on their annual tax return, but receive tax credits for the amounts withheld by operators.
      • Failure to comply with tax payment and reporting obligations may result in the blocking of the operator’s website in Ecuador.

      Tax Incentives, Exemptions, and Special Provisions

      • There are currently no specific tax incentives or exemptions for gambling operators in Ecuador.
      • Players receive annual tax credits sourced from the operator’s withholding tax, offsetting their personal tax liability on gambling winnings.
      • No additional special provisions for other forms of gambling are in force, as the current framework is focused on sports betting operations.

      Prohibited Individuals

      Age Restrictions and Identification Requirements

      • Participation in any form of regulated gambling, including sports betting, is strictly limited to individuals aged 18 years and older.
      • Operators are required to implement robust age verification and identification processes to prevent underage gambling. This typically involves requesting official identification documents at the time of registration or entry, both online and at physical venues, to confirm the player's age and identity.

      Prohibited Activities and Game Restrictions

      • Land-based casinos, bingo halls, and most forms of physical gambling venues have been banned in Ecuador since 2011, and their operation remains prohibited unless new regulations are enacted to lift the ban.
      • Currently, only sports betting is permitted under the new regulatory framework. All other forms of gambling, such as casino games, slot machines, and bingo, remain illegal.
      • Operators are prohibited from offering any gambling products or games outside the specifically authorized scope (i.e., only sports betting is allowed).

      Advertising and Marketing Limitations

      • Strict limitations apply to gambling advertising and marketing. Operators must ensure that all promotional materials do not target minors or vulnerable groups.
      • Advertising must not be misleading, must clearly state the risks of gambling, and must avoid suggesting that gambling is a solution to financial problems or a path to success.
      • Operators are required to include responsible gambling messages and information about support resources in all advertising materials.

      Responsible Gambling Requirements and Player Protection Measures

      • Operators must provide clear and accessible information about responsible gambling, including the risks associated with gambling and available support services for problem gambling.
      • Self-exclusion options must be available, allowing players to voluntarily ban themselves from participating in gambling activities for a specified period.
      • Operators are required to monitor player behavior for signs of problem gambling and intervene when necessary, which may include offering support or restricting access to gambling services.
      • Limits on deposits, losses, and session durations must be offered to players to help them manage their gambling activity responsibly.
      • All player funds must be kept separate from operational funds to ensure player balances are protected in the event of operator insolvency.

      Geographic and Location Restrictions

      • Physical gambling venues such as casinos and bingo halls are not permitted to operate anywhere in Ecuador under the current restrictions.
      • Online sports betting is allowed, but operators must ensure their services are not accessible from locations where gambling is specifically prohibited, such as schools or youth centers.
      • Operators must implement geolocation technology to prevent access from restricted areas and to ensure compliance with local regulations.
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        Timeline

        Year/Date Event
        2011 National referendum leads to a ban on all land-based gambling, resulting in the closure of casinos and bingo halls across Ecuador.
        2011–2023 Gambling ban remains in effect; online gambling operates in a legal gray area due to lack of specific regulation.
        2024 President Daniel Noboa introduces Executive Decree 487, initiating a new regulatory framework for sports betting and proposing the legalization of broader gambling activities through a national public consultation.
        July 1, 2024 Unique income tax regime for sports betting operators begins to be collected, imposing a 15% rate on operator income.
        September 2024 65 sports betting operators are registered under the new self-registration system.
        January 2025 Government updates regulations for sports betting, requiring both resident and non-resident operators to obtain a license from the Ministry of Sports; license cost set at 655 unified basic salaries (approximately $307,000 for 2025).

        Requirements

        Software Certification and Technical Standards

        • All gambling platforms must utilize certified software that meets recognized international standards for fairness, randomness, and integrity of games.
        • Technical systems must undergo independent testing by accredited laboratories to verify compliance with regulatory requirements for game outcomes, payout calculations, and system security.
        • Operators are required to implement robust technical controls to prevent unauthorized access, manipulation, or tampering with game software and data.
        • Regular technical audits of gaming systems and software updates are mandatory to ensure ongoing compliance with established standards.

        Data Protection, Privacy Measures, and Server Location

        • Operators must implement advanced data protection protocols to safeguard player information, including encryption of sensitive data both in transit and at rest.
        • Strict privacy measures are required to ensure compliance with national and international data protection laws, including secure storage, restricted access, and clear data retention policies.
        • Server infrastructure must be located in secure data centers that meet regulatory standards for physical and digital security. The regulator may require that servers hosting player data and gaming transactions be located within Ecuador or in approved jurisdictions to facilitate regulatory oversight.
        • Operators must have disaster recovery and data backup systems in place to prevent data loss and ensure business continuity.

        Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

        • Comprehensive AML programs must be implemented, including automated transaction monitoring systems to detect and report suspicious activity.
        • Operators are required to conduct thorough KYC procedures, verifying the identity, age, and source of funds of all players before allowing participation in gambling activities.
        • Ongoing monitoring of player accounts is mandatory to identify unusual betting patterns or financial behaviors indicative of money laundering or fraud.
        • Operators must maintain detailed records of customer due diligence, transactions, and AML investigations for a period specified by the regulator, and provide timely reports to authorities as required.

        Financial Reporting, Auditing Standards, and Record-Keeping

        • Operators are obligated to maintain accurate and up-to-date financial records, including all gaming transactions, player balances, and prize payouts.
        • Regular submission of detailed financial reports to the regulatory authority is required, following prescribed formats and timelines.
        • Annual independent audits of financial statements and gaming systems must be conducted by qualified external auditors to ensure transparency and compliance.
        • All records related to player activity, financial transactions, and regulatory compliance must be securely stored and readily accessible for inspection by authorities for a period defined by regulation.

        Technical Implementation Requirements for Responsible Gambling Tools

        • Operators must integrate technical tools that enable players to set deposit limits, loss limits, and self-exclusion periods directly through the gambling platform.
        • Automated systems should be in place to detect signs of problematic gambling behavior and trigger responsible gambling interventions, such as notifications or account restrictions.
        • Information on responsible gambling, including access to support resources, must be prominently displayed and easily accessible on all platforms.
        • Operators are required to maintain technical logs of all responsible gambling interactions and interventions for regulatory review.

        Sources

        Primary Regulatory Authorities

        Legislation Resources

        Contact Information

        • Servicio de Rentas Internas (SRI): Phone: 02 393 6300
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          Important Information Notice

          Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.

          Last updated: 21 April 2025