Operator News
Ecuador – New project would bring casinos back to Ecuador
By Phil - 2 May 2019
A new project has been put forward that would allow for the reopening of all the casinos in Ecuador.
The project was put forward by Mauricio Villacís, President of the Association of Ex-Workers for the casino sector. According to Villacís the country is losing out on millions in tax revenue and “more than 20,000 jobs directly and indirectly linked to this activity, with an approximate investment of about $400m.”
The project is already in the hands of the Ministries of Labour, Tourism and Economy, as well as the Internal Revenue Service (SRI). It is hoped that through them that the project will ultimately be put forward to President Lenín Moreno, who became Ecuador’s president in 2017 and is far more centrist than his left wing predecessor Rafael Correa.
The supporter of the new bill argues that between its neighbouring countries Peru and Colombia “we have data that they (casinos) report profits of about US$300m.” Of that amount they say as much as 15 per cent is generated by Ecuadorian players.
Villacís said that this means that “some 45 million dollars go to Colombia and Peru for gambling, not to mention online gambling, in which Ecuador has no regulations,” meaning that millions more is probably being gambled via offshore gambling sites.
One of the lawmakers to publicly make a stand on the issue is the Mayor of Quito, Jorge Yunda, who said that the reopening of casinos should be part of a referendum when talking about extending the opening hours of nightclubs.
The bill includes the repeal of Article 236 of the Comprehensive Criminal Code (COIP), which prohibits gambling for profit. Villacís said that casinos could be allowed again either via a referendum or via the Constitutional Court. Among the proposed changes is the creation of a new gaming regulatory body.
In September 2010 then President of Ecuador Rafael Correa announced that his government was seeking to ban casinos. Claiming that casinos in Ecuador had become hotbeds of corruption and money laundering Correa told local press that his administration would put the question before the Ecuadorian people as part of a referendum. If the Ecuadorian people agreed with the President’s views on the issue then all of the fifty five casinos and bingo halls in Ecuador would be closed down forthwith.
Almost four million Ecuadorians (47.7 per cent of the voters) voted that that they were in favour of such a move meaning that many skilled and experienced casinos workers, many of whom had been working in the industry for almost 15 years were left jobless.
Caption: The old Casino Sol in Ecudaor
