Ecuador registers 65 sports betting companies under new tax framework

Ecuador has registered 65 sports betting companies in the first half of 2024 under its new tax regime, which came into effect on July 1the country’s Internal Revenue Service (SRI) announced this week.

The new framework, established by Implementing Decree No. 313 and published on 28 June, lays down a 15% gross income tax on sports betting operators, regardless of whether they are based in Ecuador or abroadIn addition, players’ winnings are subject to a 15% withholding tax. Operators have six months to adapt their systems to comply with the regulations.

Damián Larco, director of the SRIgave an update on the progress of the registration to the local broadcaster Teleamazonaswhich confirms that the majority of the 65 registered companies are localwith only two international operators.

Larco indicated that the actual number of active providers in the market is likely higher, and The SRI actively monitors the sector to ensure offshore operators comply with the rules. for licenses. Failure to do so may result in their IP addresses being blocked.

Despite the increased tax burden, Operator interest remains high, especially as the Ecuadorian government considers further changes to gambling regulationsAlthough land-based gambling has been banned since 2011, sports betting was not explicitly prohibited. Discussions about lifting the ban on physical gambling establishments and the introduction of a new regulatory framework is underway.

President Daniel Noboa initially submitted a proposal to regulate gambling to a public consultation, but the issue was withdrawn amid social unrest and escalating conflicts with drug cartels earlier this year.