The potential for legalizing online gambling - Ecuador

Summary in two lines

From 2024-2025, Ecuador actually legalized and "whitewashed" the online market for sports forecasts: there is a single tax of 15% of GGR, special rules for residents/non-residents and a LOPD license from the Ministry of Sports; advertising of bets in the media is allowed. This creates the basis for a possible expansion of regulation to other online games (iCasino, bingo online, etc.) if the state decides to move on with separate standards for player protection and technical regulations.

1) What is already formally settled online (starting "white zone")

Tax and fiscal base. From July 1, 2024, operators of online sports forecasts pay a single income tax of 15% (based on "income minus prizes paid"), with monthly declarations; for players there is a 15% deduction from winnings. The state SRI also provided for procedures for non-residents (RUC through an attorney, etc.).

LOPD license. December 2024: Decree No. 487 introduced a unified license for sports forecast operators (LOPD) issued by the Ministry of Sports for 5 years and with an annual fee = 655 SBU (≈ $307,850 in 2025). The Ministry of Sports received 3 months to issue the requirements; operators - the same period for bringing the systems into compliance.

Advertising. October 2024: Through a reform to the Ley Orgánica de Comunicación regulations, media advertising of bets is allowed in the country (after the 2023 ban period). This removed the regulatory "fork" between the visibility of brands in sports and the rules for media.

Market and participants. Against the background of fiscalization, 65 companies registered to pay tax (first half of 2024), which confirmed their interest in the "white" regime. There are also foreign brands among legal entities (for example, Novibet/Betano through local apoderados).

2) What is "beyond the frame" for now: offline and full-fledged iCasino

Offline casinos and ticket offices. After the referendum-2011 and Decree 873, land casinos, halls and bookmakers "casas de apuesta" are closed; the possible return of offline casinos is discussed only in conjunction with tourism and through a new referendum (niche format of 5-hotels), but they did not reach the actual launch of the case.

Non-sports online games (iCasino). The current "white zone" is directly oriented towards pronósticos deportivos. To expand into slots/tables/live casinos, the state will need separate standards: RNG/live technical regulations, certification, age filters, RG tools and hard AML. There is potential - reliance on tax/licensing infrastructure has already been created, but so far this has not been explicitly regulated.

3) Why Ecuador benefits from going further (if they decide to expand)

Fiscal effect. Base expansion (iCasino) will increase regular tax revenues (GGR tax, license fees, VAT in service chains). Mediapole 2024-2025 already demonstrates how tax + license has increased transparency in sports betting; scaling is logical.

Control and protection. The legal perimeter allows you to oblige the operator to limits, self-exclusion, KYC/AML, audits and real-time reporting, which is not in the "gray" zone.

Tourism and sports industry. White advertising and sponsorship have already been returned to the media; this harmonizes football partnerships and media monetization - and can become the infrastructure for broader iGaming activities (e-sports/content/events).

4) What to consider if you expand to iCasino

1. Licensing by verticals. Individual license classes (slots RNG, live games, bingo), software and studio certification, vendor register.

2. Technical supervision and reporting. API integration with regulator/SRI, online cash desk/log tracking, storage of game events, anti-manipulation.

3. Responsible play (RG). Age 18 +, KYC with biometrics, deposit/loss/time limits, self-exclusion, visible cool-off tools, 15% retention with winnings - if necessary - is reduced to unified logic.

4. AML/CTF. Source of funds, transaction monitoring, prohibition of mixing pools, mode for non-residents on the model of the current rules (apoderado and RUC procedures).

5. Advertising and marketing. The already allowed betting advertising should be supplemented with a code for iCasino: RG water brands, a ban on targeting vulnerable people, frequency/time restrictions, T & Cs understandable bonuses.

5) Risks and how to extinguish them

Soc. agenda and protective filters. Public sensitivity is high after the 2011 ban; need a transparent RG frame + ludomania prevention fund.

Crypto payments and offshore. Given the restrictions of banks on crypto and the status of "non-legal tender," any on-chain schemes require a separate/white-list provider technique or ban.

Compliance with regulations. The key to success is linking the license to daily reporting, fines/suspensions and a real off-ramp to the local economy.

6) Step-by-step roadmap (if the state decides to legalize iCasino)

1. White paper of the Ministry of Finance/Ministry of Sports/SRI: tax model (rate on GGR), license classes, additional payment by verticals.

2. Draft regulations: RNG/live technical standards, audit, log retention periods, content provider rules.

3. Public consultations with clubs, media, NGOs on RG; publication of impact estimates (fiscal impact).

4. Transition period 6-12 months: sandbox for locally licensed platforms, KPI for RG/taxes/payments.

5. Full launch: a common register of the operator/provider, mandatory integration of reporting and a single portal of complaints.

7) What it means for the industry right now

Operators: sports forecasts - already settled; prepare compliance block (LOPD, 15% GGR, 15% deductions, reporting), build a chain of local payments and prepare for possible "iCasino classes."

Media and clubs: the window of opportunity in advertising and partnerships is open again (with RG restrictions).

Players: the emergence of "white" operators = understandable payments, data protection and civilized disputes; monitor LOPD availability and local tax logic.

Ecuador for 2024-2025 has collected a basic legal and fiscal "skeleton" for online in the segment of sports forecasts: 15% GGR tax, register of subjects, LOPD license and returned advertising in the media. This is already a legal digital betting market. The logical next step is a neat extension to iCasino with separate technical standards and player protection. With competent implementation, the country will receive an increase in revenues and transparency, and the players will receive a protected ecosystem in which "entertainment" does not contradict responsibility.