In the first half of the year, Ecuador registered 65 sports betting companies, according to the Federal Revenue Service (SRI). These new companies registered under the new tax regime.
Executive Degree No. 313 established July 1 and published it on June 28.
This new legal framework imposes a significant tax burden. Sports betting operators must pay a 15% tax on gross revenue. This is whether they are local or international.
Moreover, winnings of the players are subject to a 15% withholding tax. Operators in Ecuador have a period of six months to update their systems and comply with the new regulations.
In a recent interview, Damián Larco, SRI director, highlighted that the majority of registered companies are of local origin. Only two of these are international operators.
He also indicated that the actual number of active traders in the market could even be higher. The SRI is closely monitoring the sector to ensure that offshore operators apply for licenses and to block their IP addresses if they don’t comply.
Interest from operators remain high in spite of the increase in the tax burden. The Ecuadorian government is considering further changes to gambling regulations. They are also considering lifting the ban on land-based casinos. This has been in effect since 2011.
President Daniel Noboa initially included the proposal to regulate gaming in a public consultation. However, civil unrest and increased conflicts with drug cartels led to its withdrawal in early 2024.
The Betting Management System or Sigap received a 113 licensing requests from companies interested in operating sports betting and online games in Brazil. The Ministry of Finance expects to raise over R$3 billion solely from grant payments.
