Ecuador is embracing a big shift in its sports activities betting panorama with the introduction of a brand new licensing framework and tax regime underneath Executive Decree 487, signed by President Daniel Noboa. These measures goal to control the rising trade, guaranteeing compliance whereas addressing considerations about participant safety and moral gaming practices.
New Licensing System
The up to date framework mandates that sports activities betting operators, each resident and non-resident, should purchase a license issued by the Ministry of Sports to function in Ecuador. The license, legitimate for 5 years, prices an annual charge equal to 655 unified primary salaries—estimated at $307,850 for 2025. This charge have to be paid inside the first 20 days of the fiscal 12 months to keep away from sanctions, potential blocks, or operational restrictions.
With these adjustments, the variety of registered sports activities betting operators in Ecuador has grown to 65 as of September 2024, reflecting the federal government’s effort to formalize the trade.
Tax Regulations for Operators and Players
Starting July 1, 2025, sports activities betting operators can be topic to a 15% revenue tax on their gross income, excluding participant winnings. Additionally, gamers will face a 15% withholding tax on prizes exceeding their complete bets inside a month-to-month interval.
To guarantee readability, the federal government has outlined what constitutes a “prize.” As tax lawyer Andrea Moya defined, “The player will be considered to have received a prize when, within a monthly period, the value received for correct guesses is greater than the value bet.” Players should declare these winnings of their annual tax returns, with tax credit issued primarily based on the withholding tax collected by operators.
Regulatory Adjustments and Deadlines
Operators are given a three-month interval to align their techniques with the brand new laws. During this time, public entities just like the Financial and Economic Analysis Unit (UAFE) and the National Intellectual Rights Service will replace their techniques for regulation enforcement, cash laundering prevention, and different compliance measures. Non-resident operators are exempt from sanctions throughout this era, though full compliance can be anticipated afterward.
The Ministry of Sports has additionally been tasked with finalizing laws governing the licensing framework inside this timeframe. Any future changes to license charges would require approval from the Ministry of Finance.
Concerns Over Regulation by Decree
While the reforms signify a big step ahead for Ecuador’s sports activities betting trade, critics have raised considerations in regards to the strategy. Santiago Alban, a lawyer at HEKA regulation agency, emphasised the necessity for regulation by legislative processes somewhat than govt decree. He argued, “Even for ethical purposes, for responsible gaming, we need to first work on the basis of the licence. What is going to be needed? How is the government going to interact with the [certification]
labs? What labs are going to be qualified? How is the player going to be protected with his licence? And with all that in mind, have a law, because it is not a matter of ruling just with an executive decree.”
Ecuador’s efforts to control sports activities betting mirror a rising pattern in Latin America to embrace the iGaming increase. As the nation navigates the challenges of implementing these new measures, it units the stage for a extra structured and accountable gaming setting. With licensing and tax guidelines firmly in place, Ecuador is poised to foster a regulated trade that balances market development with participant safety and moral practices.
Source:
Ecuador introduces $307,850 annual sports betting licence, SiGMA, January 9, 2025.
