Ecuador tightens sports betting licensing and compliance requirements

• Ecuador’s new regulation sets an annual fee of 655 unified basic salaries (around $315,000 at 2026 rates) and requires operators to prove local domicile and fiscal compliance.
• Applicants must obtain technical certification of their digital platforms from a laboratory authorized by the national sports authority.
• The rules build on the Organic Law of Sport approved by the National Assembly on December 19, 2025 and formally reapproved by 86 votes on February 10, 2026.

Ecuador has introduced stricter financial, technical, and compliance requirements for sports betting operators through secondary legislation enacted in June 2026.

President Daniel Noboa signed a new regulation to the Organic Law of Sport, Physical Education and Recreation in June 2026. The rules require operators to secure authorization from the national sports authority and pay an annual fee of 655 unified basic salaries (SBU).

At 2026 rates, the fee amounts to approximately $315,000, payable each year during the license term. Licenses are granted for an initial five-year term and may be renewed, subject to continued compliance and payment of the applicable annual fee.

Financial criteria

The regulation sets financial and legal conditions to ensure operators are locally grounded and in good fiscal standing. Applicants must submit a formal request to the sports authority and provide documentation establishing their legal identity and stated purpose. They must also demonstrate domicile and residence in Ecuador.

Operators must confirm compliance with national tax obligations and the social security system, and submit audited financial statements for the previous fiscal year.

Minimum capital or equity requirements apply, calibrated to the projected scale of operations. For foreign-owned entities, additional evidence of proper incorporation and authorization to operate in the country is required.

Technical bar

Operators must prove ownership or exclusive rights over the domain names and distinguishing marks under which they plan to offer services. They must also obtain technical certification of their digital platforms from a laboratory authorized by the national sports authority.

Customer-protection obligations are embedded directly in the framework. Operators must implement internal manuals and procedures addressing customer identification, age verification and transaction traceability.

Building on prior law

Ecuador’s effort to formalize sports betting has built steadily over the past two years. Land-based gambling has been prohibited since a 2011 referendum. Until recent reforms, sports betting operated largely in a legal grey area, treated as a form of forecasting exempt from the general gambling ban.

The formalization process shifted in December 2024, when Noboa signed Executive Decree 487. That decree required all operators, including non-residents, to obtain a Sports Betting Operation License from the Ministry of Sports. The annual license fee was set at 655 unified basic salaries (SBU), equivalent to approximately $307,850 at 2025 SBU rates.

Operators are subject to a 15% income tax on gross revenues less player winnings, alongside a 15% withholding tax on player prizes. A 15% VAT (IVA) applies separately to digital services, including online gaming and sports betting. Platforms that fail to comply may be subject to blocking measures under tax-enforcement mechanisms, including potential website blocking.

On December 19, 2025, Ecuador’s National Assembly approved the Organic Law of Sport, Physical Education and Recreation by 84 votes to 60. The law replaced a framework in place since 2010 and embedded sports betting regulation in Ecuador’s sports law for the first time. The text was returned with presidential observations and formally reapproved by 86 votes on February 10, 2026.

The June 2026 secondary regulation converts that legal base into granular operating conditions, reflecting active enforcement intent.

Regional direction

Ecuador’s move reflects a pattern taking shape across Latin America. Governments in the region are formalizing markets through structured licensing regimes, high entry fees, and fiscal obligations. In Brazil, the stance has grown increasingly restrictive, with President Lula targeting the betting sector as part of his reelection campaign.

The new fee and compliance package increases the financial and administrative burden on operators already active in Ecuador. Local domicile requirements, mandatory platform certification, and annual SBU-indexed fees set a higher threshold for continued operation.

International operators without an established local entity face an additional structural hurdle in meeting the domicile and residence conditions.