Key Moments:
- A nationwide referendum on November 16, 2025, could overturn Ecuador’s 2011 ban on land-based casinos
- The plan would confine casinos to five-star hotels, applying a 25% tax on casino sales for child nutrition and school meal programs
- Regulatory changes in July 2024 have already introduced new taxes on online gaming, signaling momentum for broader legalization
Pivotal Referendum Could Relaunch Casino Industry
Ecuador is preparing for a public vote on November 16, 2025, that could reinstate legal land-based casinos after a 14-year prohibition. This initiative, introduced by President Daniel Noboa, is among seven proposed referendum questions aimed at reshaping the country’s economic and social frameworks. The measure would permit casinos to operate only in five-star hotels and introduces a 25% tax on casino sales, with the resulting funds earmarked for child nutrition and school meal initiatives.
Regulatory Journey and Revised Legal Proposal
Ecuador’s Constitutional Court initially rejected an earlier, broader casino legalization question. A revised version, focusing solely on permitting casino operations in luxury hotels, gained approval, clearing the way for the scheduled referendum.
Industry Prepared for Accelerated Launch
Should voters endorse the measure, industry observers expect a rapid casino rollout. Juan Carlos Loza Mendoza, who leads LatAm gambling sales at ProntoPaga, said, “The infrastructure and culture are ready,” adding: “Sports betting sites and online casinos are already operating, and the payment systems can handle the transactions. It’s just a matter of months.”
Mendoza characterized the potential casino return as “sensational” and pointed to Ecuador’s digital betting maturity as a strong foundation for land-based gaming.
Former Vibra Gaming CEO Ramiro Atucha highlighted the strategic nature of linking casinos exclusively to high-end hotels, predicting it will draw significant investment. “It’s going to bring investment to Ecuador,” he said. “It’s a dollarized economy with 20 million inhabitants — not huge, but stable and attractive to foreign operators.”
However, Atucha warned that ongoing volatility, such as recent violent protests and the assassination attempt on President Noboa, may delay implementation. He stated: “If the government stabilizes and manages to attract five-star hotel investment, the economic impact will be significant, especially if properly taxed.”
Online Reforms Signal Regulatory Momentum
Despite banning physical casinos in 2011, Ecuador has maintained a legal online betting market. In July 2024, new policies imposed a 15% gross revenue tax on sports betting operators and a 15% withholding tax on player winnings, as mandated by Executive Decree No. 313. Restrictions on sports betting advertising were also lifted during this regulatory overhaul.
Santiago Albán, managing partner at law firm Heka, commented that these legislative changes have established a strong precedent: “The online betting reform demonstrated the state’s capacity to integrate gaming into the formal economy, with clear taxation and compliance obligations,” Albán said. “It sets a regulatory precedent for the return of land-based casinos.”
Potential Impact for Markets and Investors
With the November 2025 referendum, Ecuador stands at a pivotal moment for its gaming industry. Passage of the measure could accelerate the convergence of online and offline gambling regulation, attract capital inflows, and create substantial new tax streams – a crucial development in the ongoing professionalization of gaming within the country.
| Aspect | Details |
|---|---|
| Referendum Date | November 16, 2025 |
| Casino Locations | Five-star hotels only |
| Casino Sales Tax Rate | 25% |
| Online Betting Tax (2024) | 15% gross revenue; 15% withholding on winnings |
| Use of Casino Tax Revenue | Child nutrition and school meal programs |
- Author
Daniel Williams
