Ecuador May Partially Lift Ban on Gambling Zones

On August 5, Daniel Noboa announced on his X account that a referendum on the reopening of casinos would be submitted to the Constitutional Court. This is certainly a huge breakthrough, since gambling has been banned in Ecuador since 2011.

However, the president did not propose to fully legalize casinos, but only partially. Gambling establishments would have to be located exclusively in 5-star hotels, and operators would pay a 25% tax on sales, which would go toward funding social programs.

The reopening of casinos is part of a program to revive tourism, create new jobs and new tax revenues. All this was lost in 2011 after the ban on gambling establishments by former President Rafael Correa. The Ecuadorian government has assured in advance that the industry will be strictly regulated and will operate, as already stated, exclusively in elite tourist zones. Noboa had previously floated the idea of reopening gambling halls, but the initiative was withdrawn due to widespread criticism. Many people were against the idea, fearing that it would increase drug trafficking and money laundering.

What the outcome of this year's attempt will be remains unknown, because even if voters approve the proposal, this does not mean that the law will be passed, since referendums in the country simply do not guarantee this.