Attempts to reopen casinos: parliament discussions (Ecuador)

Attempts to reopen casinos: Parliament debate

Brief context

Casinos and gambling halls in Ecuador have been banned since a referendum on May 7, 2011; the ban was implemented by decree and brought to the actual closure of facilities in 2012.

Theme return: 2024-2025

After the launch of the tax-licensing circuit only for sports betting (15% GGR, mass registration of operators in 2024), the issue of land casinos returned to the public agenda as a potential tourist anchor and source of income.

How the National Assembly turned on

Formally, casinos can be returned either through the new Consulta Popular (referendum) or through subsequent legislation if the referendum permits the format. In 2025, a number of materials and official clarifications emphasize: if the casino issue is approved, the Assembly is obliged to develop and adopt an implementation law on time (in practice, there was a guideline of up to 90 days for related packages, according to industry media). This turns parliament into a key platform for details: where it is possible, under what conditions, how taxes are distributed, what are the requirements for responsible gambling.

Political positions in the Assembly

Regional and party deputies declare conflicting views: some - for the "point" return of casinos only in 5-hotels with a high tax and strict supervision; opponents warn of social risks. This can be seen in the reactions of factions and regional representatives in August-September 2025.

Struggle for wording: first refusal, then "window"

September 2025: The Constitutional Court rejected the president's proposed wording of the casino question - because it was "composite" (combining casino permission in 5-hotels, a fixed 25% tax rate and the purpose of the proceeds). The court pointed to a violation of the parameters of the unity of matter. This is recorded in the official Dictamen 8-25-CP/25 and reflected in the profile press.

End of September - beginning of October 2025: after processing the package of messages, specialized publications reported that the Court allowed to issue a narrow version of the issue - about casinos in 5-hotels (without "binding" to 25% and a specific budget goal), opening the way to voting. The relevant publications record the approval of one of the presidential issues.

The result for October 12, 2025: the topic of casinos is officially submitted to a referendum in a narrow edition, and full-fledged market parameters will have to prescribe the law for which the National Assembly is responsible.

Arguments of the parties (as they sound in and around parliament)

Supporters (part of the executive and part of the deputies)

Jobs and tourism. 5-hotel casinos are an incentive for the MICE segment and high-margin tourism.

Budget revenues. High fiscal rates and targeted reporting are a "yes" argument. (An early version mentioned a 25% tax, but its "peg" became the legal issue of the question in the referendum.)

Opponents (part of opposition and civil society)

Social risks. Returning the visibility of gambling and pressure on vulnerable groups.

Procedural claims. The requirement not to mix in one issue the policy of permission and specific tax norms/purpose. This was the reason for the refusal of the Court of the original version.

What exactly the referendum will decide

According to industry and regional media reports, the new version of the issue concerns the very principle: whether to allow casinos in 5-hotels (without fixing a separate interest rate and budget "binding" in the referendum text). Everything else is in the competence of the Assembly, which will have to adopt an implementation law with the parameters of licensing, taxes, compliance with RG/KYC/AML, location and inspections.

Related reforms: Sports betting as administration 'rehearsal'

The year before, Ecuador whitewashed sports betting: 15% GGR tax (from July 1, 2024) and registration of 65 companies - this gave the authorities the practice of administration and reporting, but does not apply to casinos. Supporters' political argument: "we have already learned how to administer sports betting - we can and casino." Opponents retort that the risks are different.

What awaits the Assembly if the referendum is in favor

1. Terms and regulations. Preparation and adoption of a basic law (reports indicate that on previous packages related to referendums, up to 90 days for parliamentary work appeared).

2. Licensing and market model. Determine who issues licenses, for how long, what requirements for capital, transparency of owners and localization.

3. Taxes and fees. Fix the stakes in the law, and not in the text of the referendum (so as not to violate the "unity of matter").

4. Responsible play. Build mechanisms for self-exclusion, limits, marketing restrictions, age verification, transaction monitoring. (The logic follows from the already implemented practices in the sports betting market.)

If the referendum is "against"

The 2011 ban remains in force; parliament can only discuss related measures (for example, strengthening control over illegal halls or advertising offshore online), but not the casino return model.

Timeline of key steps (with focus on parliament and court)

2011-2012: Casino ban and closure.

2024: taxes and accounting for sports betting (15% GGR; 65 companies).

September 5-8, 2025: The Constitutional Court rejects the "composite" issue of casinos (5 + 25% + purpose).

end of September - October 5, 2025: The court gives the go-ahead for a narrow wording (casinos in 5-hotels). Next - CEC and preparation for voting.

after the referendum (if in favor): the National Assembly develops and adopts an implementation law (the subject of a future parliamentary compromise).

The discussion about the return of casinos in Ecuador went beyond slogans and moved to the legal plane, where the Assembly will become the final architect of the model - if the referendum approves the principle itself. The failure of September 2025 in the Constitutional Court taught the authorities not to link casino permission and a specific tax formula in one issue. Now the "window" is open: the narrow issue of casinos in 5-hotels is preparing the ground for a future parliamentary law, which will solve the key parameters of the market - from taxes to consumer protection.

Sources: Constitutional Court (official Dictamen 8-25-CP/25), profile media and industry publications: iGB, G3, SBC Noticias, MundoVideo, Revista Casino Perú; materials on sports betting taxation in 2024 (iGB, Yogonet). See quotes above.