A court has determined that language used to request a referendum was illegal
Ecuador’s push to bring back casinos has hit another roadblock after the country’s constitutional court struck down a referendum question tied to their reopening. The decision complicates President Daniel Noboa’s efforts to revive the industry, which has been banned since 2011.
Earlier this month, Noboa submitted seven questions for a December referendum. The final proposal asked voters whether they supported reopening land-based casinos within five-star hotels, with a 25% tax on operations. The funds would have been directed toward school meal programs and initiatives to combat child malnutrition.
The court, however, rejected the question, saying it failed to meet constitutional standards. Judges pointed to two main issues: the preamble was unclear and risked confusing voters, and the question bundled together three separate matters—casino reopening, the establishment of a new gambling tax, and the allocation of that tax revenue. By combining them, the proposal limited the public’s ability to express different opinions on each part.
“The body ensures that proposals for referendums respect constitutional limits and are formulated with clarity and loyalty to voters,” the court stated. While the ruling blocks the current version, Noboa could submit a revised question that separates the issues to comply with legal requirements.
This is not the first setback for casino supporters. In January, Noboa removed a similar question from a referendum amid rising security concerns across the country. The government has instead focused on strengthening measures against organized crime, a top political priority.
Despite the barriers to land-based casinos, Ecuador’s gambling sector has seen changes online. A new 15% gross revenue tax on digital operators took effect in July 2024, and player winnings are now subject to a 15% withholding tax.
65 companies registered under the new system in the first half of that year, signaling interest in the regulated online market even as physical casinos remain off-limits.
