The Ecuadorian Internal Revenue Service (SRI) has confirmed that 65 sports betting companies have expressed their willingness to participate in the country's newly regulated betting market and have agreed to pay a 15% tax on total revenue. This development marks a significant shift in the landscape of Ecuador's gambling industry, which has been heavily restricted for over a decade.
The regulation of sports betting was enacted following the approval of the "Economic Efficiency and Job Creation Act," which introduced a framework for legal gambling operations in Ecuador. SRI Director Damián Larco stated that the 65 applicants include 63 local companies and two international operators. This new sports betting registration system, launched in July, represents an important step towards the regularization of the industry in the country.
The tax model stipulated by the law is quite stringent, imposing a 15% tax not only on the operators' total revenue but also on players' winnings. This dual taxation approach is designed to ensure that the government secures a significant portion of the revenue generated by this emerging industry. Additionally, the SRI has taken a firm stance on enforcement, planning to blacklist the IP addresses of all unlicensed operators. This move aims to curb tax evasion and money laundering, issues often associated with unregulated gambling markets.
Although the official registration number is 65, industry experts believe that the actual number of active sports betting providers in Ecuador might be higher. This discrepancy suggests that some operators may still be operating covertly, beyond the scope of the new regulatory framework. However, Larco assures that the SRI is actively monitoring the market to ensure that all operators comply with the regulations.
