The online gambling market in Ecuador has seen significant activity over the years, with international operators offering their services to Ecuadorian players.
These operators often hold licenses from jurisdictions like Malta or Curaçao.
Ecuador, with a population of approximately 18 million people, uses the United States Dollar (USD) as its official currency.
Some of the most well-known operators among Ecuadorians include Betsson, Coolbet, Bet365, and Betano.
Regulatory Environment
In June 2024, a Real Decree was published that introduced a form of regulation for the online gambling sector in Ecuador.
You can see the Decree by clicking here (content in Spanish).
This new regulatory framework includes several key requirements for operators:
Registration and Representation
- Single Taxpayer Registry: International regulators must register in Ecuador’s single taxpayer registry to obtain a registration number.
- Local Legal Representative: Operators need to appoint a local legal representative to act on their behalf in Ecuador.
Taxation
- Revenue Tax: A 15% tax on revenue (calculated as income minus prizes) is to be paid monthly by the operators.
- Prize Withholding Tax: There is a 15% withholding tax on prizes. This tax is not on withdrawals but on the prizes themselves. When operators credit a prize to the user, they must withhold 15% and pay it monthly to the regulator.
Player Obligations
- Income Tax Reporting: Players must include income from sports betting companies in their income tax declarations, stating the withholdings made by the operators.
Scope and Compliance
Operators will have a period of six months from the publication date of the Real Decreto to comply with these new regulations.
Compliance Support
At Itzitip Consulting, we work closely with local lawyers to help international operators comply with the current regulations in Ecuador.
Our expert partners can guide you through the registration process, tax requirements, and other legal obligations, ensuring your operations are fully compliant with the new regulatory framework.