This year, a host of South and Central American countries have introduced changes to legalize online gambling.
Ecuador is the latest country to implement a new tax framework. In this article, we will discuss the changes and how they will impact the gambling landscape.
Sixty-five sports betting companies have registered to operate as online gambling operators in Ecuador. This follows a wider trend in South and Central America, with countries introducing or adapting laws to accommodate the trend in online gambling. Read on as we discuss the impact this could have on Ecuador and the industry.
Changes to Ecuadorian Gambling Laws
Executive Decree No. 133 was published on June 28th in Ecuador. It stated that any company operating in the country from Ecuador or abroad must pay a 15% tax on gross revenue from gambling. Any winnings players earn are also subject to a 15% withholding tax.
This change has reflected events in Central and South America and the wider gambling industry. Buoyed by a range of factors including the drive for home entertainment, an increase in casual mobile gaming, and improvements in security in the sector, online casinos and sportsbooks have become a massive business. They let you do everything from playing casino games to wagering on basketball and sports to playing niche games like bingo. The industry was worth over $85 billion at the end of 2023.
Generating relentless revenue, many countries have begun to adopt regulations to take advantage of this. The USA is one place where laws are changing fast, letting you visit this website that provides casino games and slots in many states. Many yet to allow online gaming have accepted sportsbooks, which enable people to bet on their mobile devices on sporting and global events. Sites like onlinesportsbooks.ltd have arisen to cater to customers, providing the best ones. Similar changes have been seen in countries such as Brazil and Argentina.
How Valuable Is Ecuador as a Territory?
What makes this more astounding is the number of operators who have signed up. It is estimated around 65 companies have officially registered with the Internal Revenue Service. However, this is expected to be higher as the country monitors offshore providers and pursues them to sign up for a license.
This is worth noting, as Ecuador has vast improvements to make regarding its Internet connectivity. Major cities have good Internet and cellphone reception. Outside of there, however, it can drop dramatically. Freedom on the Net also noted that the country curbed connections last year in the face of protests.
Thus, it suggests that many operators are hedging their bets on Ecuador becoming a possible future market as opposed to a current one.
