Online casinos operate in a legal gray area in Ecuador, where land-based gambling has been completely prohibited since 2011 following a national referendum that saw 52% of voters support the ban. The prohibition was implemented under former President Rafael Correa's administration, which viewed gambling as causing social problems and wanted to create a "more healthy" atmosphere for young people (1). The referendum resulted in the closure of approximately 160 gambling establishments that had previously employed around 25,000 people, marking an abrupt end to what was once a thriving physical gambling industry in the country.
While the 2011 ban specifically addressed land-based gambling venues such as casinos and gambling halls, it did not explicitly address online gambling activities, creating regulatory uncertainty for digital gaming operations. The current legal framework, established through the "Order regarding gambling games in casinos and gaming facilities" from 2011, prohibits almost all forms of gambling except games offered by the national lottery provider (1). However, Ecuador's government has recently begun taking steps to regulate the online gambling sector through taxation rather than outright prohibition.
"Land-based gambling has been prohibited in Ecuador since 2011, although there have been discussions about lifting the ban on brick-and-mortar venues and introducing a new regulatory framework" (2).
In June 2024, Ecuador's government published Executive Decree No. 313, establishing a 15% gross revenue tax for sports betting operators regardless of whether they are based domestically or abroad, with player winnings also subject to a 15% withholding tax (2). This decree prompted 65 companies to register with Ecuador's Internal Revenue Service (SRI) in the first half of 2024, signaling a shift toward formalizing the online gambling sector through taxation rather than direct licensing. The SRI is actively monitoring the market to ensure offshore operators comply with the new tax framework, with threats to block IP addresses of non-compliant operators, suggesting that while online casinos may not be explicitly legal, they can operate within Ecuador's evolving regulatory environment by meeting tax obligations.
Source:
https://www.igamingtoday.com/gambling-regulations-in-ecuador/
https://igamingbusiness.com/legal-compliance/licensing/ecuador-gambling-tax-registration/
Last updated: 24-07-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
