Ecuador’s President Daniel Noboa has suffered a setback in his efforts to revive the reopening of casinos. The Constitutional Court has ruled out asking the question in the December referendum.
Noboa submitted seven referendum questions back on the 5th August with the final one seeking approval from voters for land-based casinos to operate within five star hotels. His proposed plan included a 25% tax on casino revenues, embarked for school meal programmes and initiatives to approve child malnutrition.
Casinos have been banned in the country since the 2011 referendum. While Noboa framed the measure as a social tool policy the Constitutional Court found the proposal unconstitutional on two grounds. The introduction to the question was said to be not clear, which would leave voters without the necessary context. To add to this the question brought forward three separate issues; reopening of casinos, creating a gambling tax and allocating tax revenues. This limited the voters’ ability to distinguish between them.
The Court implemented that the proposals for the referendum must be “clear and loyal to voters” as well as adhering to the limits within the constitution.
Earlier this year Noboa removed a similar question from the 2024 referendum which lost momentum (not for the first time) citing heightened civil unrest and a national focus on crime prevention.
Ecuador has made significant changes in its online gambling sector, since July 2024 betting operators have been handed a 15% tax on gross revenue tax and 65 companies registering in the first half of the year.
Under Executive Decree No. 313, player winnings are also taxed at 15% at the source.