The possibility of returning casinos as part of tourism - Ecuador

Introduction: from general prohibition to targeted legalization

In 2011, Ecuador, in a national consultation (referendum), supported a ban on gambling; Following this presidential Decreto Ejecutivo 873, the closure of casinos, casas de apuesta and slot machine halls began (with a transition period until March 2012 for some facilities). Since then, there has been no offline sector.

In 2025, the topic of returning casinos as an element of tourist infrastructure again reached the national level thanks to the initiative to hold a referendum on allowing casinos only in 5-star hotels. After discussions, the Constitutional Court first criticized the wording of the question, and then approved the very idea of ​ ​ raising the question under specified conditions - which opened the way to the preparation of the vote.

Why "casinos in 5-hotels"

Tourist anchor. The scenario "only in five-star hotels" is conceived as a tool to increase the attractiveness of resorts and congress tourism, without affecting residential areas. According to industry platforms, this format is linked to employment in the hotel sector and the growth of the tax base.

Political-social compromise. The model limits the geography and number of objects, reducing fears of widespread "gambling expansion." The Constitutional Court emphasized the need for a clear, one-part wording of the question - without "spreading" topics.

Economic context: online already "in the white zone"

While offline remained closed, the state in 2024 built a fiscal framework for online rates (a single tax on GGR). According to SRI, 65 companies registered to pay the new tax in the 2nd half of 2024, which confirms the course towards "whitewashing" the market. In parallel, the state online platform Bet593 (National Lottery) operates. This shows that there is already a regulatory and tax infrastructure - the only question is to expand to the offline segment for hard filters.

What can give tourism "point" legalization

1. Growth of the average tourist check: casinos as an add-on service for MICE/VIP segments and cruise streams.

2. Incentive for investment in level 5 hotels: renewal of room stock, safety and compliance standards.

3. Jobs: front office, security, IT/game tracking, responsible gaming, marketing and event management.

4. Tax return: direct (game taxes, VAT, income) and indirect (tourism, food, transport).

Industry reviews note that the question is presented precisely as an instrument of employment and tourism, and not "mass" gambling.

Risks and how they are removed

Social concerns: the problem of addiction and the protection of vulnerable groups. The solution is mandatory limits, self-exclusion, a responsible game fund, strict age verification, a unified register of self-excluded.

Money laundering (AML): Casinos are a high-risk sector. We need KYC/AML procedures, online cash registers with fiscalization, real-time reporting, audit.

Competition with the online market: to avoid "cannibalization," offline should have a clear tax and control regime and not undermine the "whitening" of online 2024 +.

What a regulatory model might look like (thumbnail)

1. Licensing and quotas: licenses only for 5-hotels; limit by city/resort; transparent tender criteria.

2. Tax regime: GGR tax + license fees; the targeted allocation of part of the proceeds to social programs (child nutrition, the fight against malnutrition) is an idea already voiced in the discussions.

3. Compliance framework: mandatory integration with supervisory systems; video analytics, blacklist control, regular independent audit.

4. Responsible play: mandatory RG program, attendance/expense limits, hotline, NPO financing.

5. Marketing boundaries: advertising only within hotel infrastructure and specialized tourist channels; a ban on targeting minors and socially vulnerable.

What skeptics say

Critics note that the issue was already put to a referendum in 2011 and was decided in favor of the ban; fear of a "regulatory reversal" and believe that tourism can be developed without a casino. The media pointed out that Corte Constitucional carefully rejects vague wording, requiring extreme accuracy, which means that the political process may take time.

Roadmap (if referendum passes)

1. By-laws: terms and requirements for 5-objects, safety standards, technical regulations.

2. Pilots in tourist areas: Permits for a limited number of resorts with employment/income KPIs.

3. Effect monitoring: quarterly reports on employment, average check, taxes, RG appeals.

4. Policy adjustment: expansion/reduction of quotas based on the results of monitoring, as well as on the results of an independent audit.

Status quo: offline casinos banned since 2011; changes are only possible through a new referendum with strict conditions.

Window of opportunity 2025 +: the court allowed the question to be raised with the correct wording; a narrow tourism model for 5-hotels is discussed as a compromise between investment and social responsibility.

Synchronization with online reform: "whitewashing" online (taxes, registration of 65 companies, state platform Bet593) creates an infrastructure of supervision and fiscal accounting that can be extended to offline pilots.