In the first half of 2024, a total of 65 companies registered to pay local taxes and operate sports betting, which came into effect on July 1, 2024. On June 28 last year, the country's government published Executive Decree No. 313, establishing a 15% gross revenue tax for companies, whether they are based in Ecuador or abroad.
Players' earnings are also subject to a 15% withholding tax. Starting from July 1, operators have six months to update their systems to comply with the new regulations.
This led 65 companies to register with the Internal Revenue Service (SRI), said Damián Larco in an update for the local broadcaster Teleamazonas this week. Most of these operators are local, with two international companies among the numbers that Larco pointed out.
However, Larco believes that the total number of active operators is much higher than the 65 that registered. The SRI is monitoring the market to ensure that offshore operators apply for licenses. If they do not, Larco says that the IP addresses of offshore operators will be blocked.
The increase in gambling taxes in Ecuador does not discourage some operators
Land-based gambling has been prohibited in Ecuador since 2011, although there is no specific ban on sports betting.
In 2024, there were discussions about lifting the ban on physical venues and introducing a new regulatory framework for gambling in Ecuador.
President Daniel Noboa initially included a question about introducing gambling regulation in a public consultation. However, the question was withdrawn after civil unrest in the country amid battles with drug cartels.
Source: iGB
