Ecuador has registered 65 sports betting companies in the first half of 2024 under its new tax regime, which came into effect on July 1, the country’s Internal Revenue Service (SRI) announced this week.
The new framework, established by Executive Decree No 313 and published on June 28, imposes a 15% gross revenue tax on sports betting operators, regardless of whether they are based in Ecuador or abroad. In addition, player winnings are subject to a 15% withholding tax. Operators have six months to update their systems to comply with the regulations.
Damián Larco, director of the SRI, provided an update on the registration progress to local broadcaster Teleamazonas, confirming that the majority of the 65 registered companies are local, with only two international operators among them.
Larco indicated that the actual number of active operators in the market is likely higher, and the SRI is actively monitoring the sector to ensure offshore operators apply for licenses. Failure to do so could result in their IP addresses being blocked.
Despite the increased tax burden, interest from operators remains strong, particularly as Ecuador’s government contemplates further gambling regulation changes. Although land-based gambling has been banned in the country since 2011, sports betting was not explicitly prohibited. Discussions around lifting the ban on brick-and-mortar gambling venues and introducing a new regulatory framework have been ongoing.
President Daniel Noboa initially included a proposal to regulate gambling in a public consultation, but the question was withdrawn amid civil unrest and escalating conflicts with drug cartels earlier this year.
Original article: https://www.yogonet.com/international/noticias/2024/08/29/76975-ecuador-registers-65-sports-betting-companies-under-new-tax-framework
