Ecuador Lifts Ban on Gambling Ads to Boost Economic Growth
Ecuadorians will soon see sports betting adverts return to their televisions and mobile devices after President Daniel Noboa lifted the nationwide ban imposed in 2023.
LISTEN TO THIS ARTICLE:Noboa, who took office in January, has been advocating for economic growth with a focus on business-friendly policies. By reversing the ban on gambling ads, he has positioned himself as a leader willing to support various sectors, including sports betting, which had previously been stifled.
The return of gambling advertising is likely to be a welcome development for sports organizations, which depend heavily on sponsorship revenue from betting companies. This revenue helps sustain sports teams and develop local talent, even though the industry itself remains largely unregulated.
Soccer League Stands to Gain from the Policy Shift
Among the beneficiaries of the policy change is the Ecuadorian Professional Soccer League. The league has been vocal about the adverse effects of the ban, which limited sponsorship opportunities and funding. Like other top soccer organizations globally, it sees this lift as a chance to boost its financial health.
The end of the ban has also been met with approval from industry experts, who believe that reintroducing advertising from established gambling firms could help curb illegal operators. The presence of reputable brands in the market may dissuade less regulated, unmonitored entities from exploiting gaps left by the previous advertising restrictions.
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Ecuador’s Gambling Sector Remains Unregulated
Despite these changes, Ecuador has not moved towards full legalization of the gambling industry. Land-based casinos and bingo halls remain banned, as decided by a 2011 referendum. The current state of online casinos and sports betting exists in a legal grey area. Companies operate without direct prohibition, but clear regulatory guidelines are still missing.
The government has, however, put forth a proposal requiring gambling companies to register with tax authorities and pay a 15% tax on operations, along with an additional 15% tax on player winnings.
President Noboa’s decision to lift the ad ban is seen as a step towards a more structured and regulated gambling market. Industry stakeholders hope this is a sign that Ecuador may eventually adopt a licensing system, ensuring transparency and control over gambling activities. Noboa is considered the most likely leader to overhaul Ecuador’s restrictive gambling laws, and his recent actions may be a prelude to a more sustainable, legalized industry.
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