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Loss of jobs and tourism income (Ecuador)

Loss of jobs and tourism revenue

The ban on land-based casinos after the 2011 referendum led to a sharp curtailment of offline gambling infrastructure. This decision had not only political and social, but also tangible economic consequences: thousands of direct and indirect jobs disappeared, the income of a number of hotels, restaurants and transport services fell, and part of the tourist flow - primarily the evening entertainment and MICE segment - switched to alternative directions.


What exactly disappeared with the casino

Direct jobs

Operational roles: dealers, pit bosses, hall supervisors, cashiers, hostess, security services.

Technical roles: slot technicians, IT administrators of monitoring systems, accounting and reporting specialists.

Commerce and Marketing: CRM/High Roller Management, Affiliate Programs, Event Management.

Indirect employment (multiplier)

Hotels and F&B: growth in room occupancy and restaurant/bar turnover was closely linked to casinos; after closing - the fall of the evening check and the refusal of package shares "number + credit for the game."

Transport and city services: taxis, transfers, facility security, cleaning, flowers/catering for VIP events.

Events and MICE: Corporate meetings and mini-congresses were often "tied" to the presence of a hotel casino as evening activity.

💡 Bottom line: the closure eliminated the core of direct employment and narrowed the "wave" of indirect jobs created by the evening spending of guests.

Tourism: how the economy of cities has changed

Guayaquil (port and business center)

More dependent on business travel. Casinos at 4-5 hotels worked as an anchor for the evening leisure of business guests and expats.

After the ban, the evening turnover of F&B dropped noticeably, some corporate clients reoriented to hotels without an "entertainment premium" - ADR and RevPAR lost their "leisure premium."

Quito (capital and tourism in the Andes)

Balanced between cultural tourism and public-business visits.

The loss of the casino reduced the depth of the wallet (evening spend) for some tourists: fewer apses for bars/shows, earlier "waste to sleep," a decrease in demand for night taxis.

Secondary effect

Reducing the MICE portfolio: the organizers are looking for locations with a "set" of entertainment.

Hotel marketing has become more expensive: you need to replace the disappeared magnet with new activities (spa packages, gastronomic festivals, concerts).


Fiscal implications

The industry's licensing and fees disappeared along with the casinos; part of the budget revenues was redistributed at the expense of other sources.

The tax footprint of consumption (VAT on evening spending, corporate income taxes, income tax on salaries) has narrowed.

In 2024-2025, the whitewash of sports betting partially restored the fiscal base (through the tax on gross income and licensing), but the structure of spending and the profile of sports employment ≠ the profile of the casino: advertising and IT teams replaced only part of the previous offline roles.


Socio-economic portrait "before and after"

ParameterUntil 2011After 2011
Hotel evening checkAbove (casino + bar/restaurant)Below, shifting to "early dinner"
Loading F&B halls late at nightHigh at Fri-SatBelow, "empty" late slots
Taxis/transfers at nightStable demandFlights down after 11pm
Employment in the entertainment sectorGrowth (gaming, those, security)Reduction/migration to other niches
MICE applications with an "evening program"Advantage of hotels with casinosNeed alternatives (show/gastronomy)

How the business adapted

1. Repackaging a hotel product

Themed restaurants, cocoa/coffee tastings, shows with local folklore.

Wellness bet: spa packages, thermae, yoga retreats.

2. Change employment profile

Partial retraining of dealers and cashiers into event personnel, personal concierges, front office employees.

Slot technicians - in IT support, technical support, telecom/system administration.

3. Marketing without a "game magnet"

More spending on performance channels and partnerships with tour operators; emphasis on safety, culture and nature instead of nighttime leisure.


What could not compensate for the closure

Anchor effect: Casinos gave the hotel an additional reason to choose this particular location (especially for high-cost guests).

Night economy: Clubs/bars do not always replace the structured and secure "evening scenario" within the hotel.

Personnel specialization: specific skills of dealers/pit bosses are not simultaneously converted into other professions.


Regional and social shadows

The risk of "going underground": part of the local demand for fast excitement has moved to illegal slot rooms, which does not create legal employment and does not give taxes.

Unevenness in cities: tourist clusters felt a drop in evening revenue more than sleeping areas.


2024-2025: what partially returned sports betting

New jobs have appeared in marketing, IT, compliance (KYC/AML), support and partnerships with sports clubs.

But: this is online and office employment, it does not fully replace evening shifts in offline entertainment and does not give the same effect for the urban night economy (taxis, offline F&B, live events in hotels).


Practical conclusions for stakeholders

Hotels and DMOs (destination marketing):
  • Strengthen the evening product without a "gaming core": gastronomy, shows, culture, light events on the embankments, safe night routes.
  • Invest in MICE packages: "conference + gastro/cultural program" as an alternative to the previous "conference + casino."
Municipalities and regions:
  • Support the night economy through festivals, safe transport, extending museum/exhibition hours during peak seasons.
  • Develop creative quarters (crafts, music, street markets) instead of "game visibility."
Employees of the former industry:
  • Retraining programs (event management, guest service, IT support), emphasis on soft-skills (communication, sales).

The casino ban in Ecuador solved the socio-political problem, but created an economic flaw in urban evening consumption and employment. Hotels 4-5, F&B, transport and MICE niche in Guayaquil and Quito were most noticeably affected. Part of the fiscal base later recovered through the regulation of sports rates, but in terms of the structure of jobs and the impact on the night economy, this is not an equivalent replacement. If the goal is to support employment and tourism revenues without returning casinos, the country and cities need a long-term strategy of evening leisure alternatives focused on safety, culture, gastronomy and events.

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