The government issued Executive Decree 487, which establishes the requirements to operate in the country.
Ecuador.- The Ecuadorian president, Daniel Noboa, enacted the Executive Decree 487, which amended the regulations of the Internal Tax Regime Law, and determined that operators of betting and sports forecasting must obtain a license issued by the Ministry of Sports to operate.
The License for the Operation of Sports Forecasting (LOPD), will be the only enabling document for the economic activity of this kind in Ecuador. These will have an annual cost of 655 Unified Basic Salaries (SBU), equivalent to USD 307,850, and must be renewed every five years.
In turn, the decree ratifies the creation of a Unique Income Tax of 15 percent for sports betting operators, calculated on gross income minus the prizes paid, administered by the Internal Revenue Service (SRI), the Ecuadorian tax agency.
The Ministry of Sports has three months to determine the requirements for obtaining and maintaining the license. In case of non-compliance, the forecasting companies will not be able to operate. The decree states that the license fee must be paid within the first 20 days of the fiscal year and the amount may be modified or updated by the Ministry of Finance.
These provisions seek to ensure more effective control of activities related to sports forecasting, both in tax terms and in the prevention of illicit activities; the decree grants a period of three months for operators and related entities to adapt their systems and procedures to the new regulations.
See also: Reform to the Communication Law in Ecuador: advertising of gambling will be allowed
With these modifications, the national government expects to collect more than USD 20m through the granting of licenses to the 65 registered taxpayers. Of that total, 46 are natural persons, while the remaining 19 are companies.
Of the 19 registered companies, two are foreign companies not domiciled in the country: Logflex MT Limited, which operates the Novibet platform, and Kaizen Gaming International, owner of the Betano brand.
The details of the remaining 17 companies are as follows:
