The constitutional court of Ecuador has approved new taxes on sports betting. The reforms are part of a much wider tax reform bill that includes tax cuts for most families.
The court had to endorse or reject two decrees signed by President Guillermo Lasso after he disbanded the National Assembly after facing a vote that could have ousted him from office. Opposition members accuse him of turning a blind eye to embezzlement. The conservative leader says that his accusers lack evidence. The measure has never before used before and allows the president to rule by decree until new elections can be held.
While the constitutional court rejected another decree that would have promoted the opening of free trade zones it did approve Lasso’s tax reform bill according to local news outlet Telam.
When it comes to sports betting the rule establishes that sports betting platforms must pay a 15% tax on GGR. In addition operators will be responsible for imposing a 15% withholding tax on player winnings. If a bet is placed via an operator that does not reside in Ecuador, the player must assume 15% of the tax on the value of thier bet at the time of placing it. At least 26 sports betting sites operate in the country according to Ecuador’s tax office.