Ecuador’s constitutional court has struck down a proposed question on reopening casinos that was set to be part of the December referendum.
On 5 August, President Daniel Noboa submitted seven questions for inclusion in the vote, with the final one asking citizens whether they favored allowing land-based casinos to reopen.
Ecuador is unusual in that it frequently holds referendums on a wide range of issues, allowing citizens to weigh in on key matters such as defense, finance, and criminal law.
Casinos were outlawed in a 2011 referendum, but President Daniel Noboa’s recent proposal sought to reverse the ban by reopening land-based casinos located in five-star hotels. The plan included a 25% tax on operations, with proceeds earmarked for school meal programs and initiatives to reduce chronic child malnutrition.
However, the constitutional court ruled last week that the question could not proceed in its current form. The court cited two main issues. First, the preamble to the question was deemed unclear, potentially confusing voters by not providing sufficient information to make an informed decision. Second, the question combined three separate issues into one: reopening casinos, creating a new gambling tax, and directing tax revenues to specific programs. This, the court said, limited voters’ ability to support or reject individual aspects of the proposal.
As a result, the court rejected the question but noted that it could still be revised to align with Ecuador’s constitutional requirements.
“With these rulings, the court ensures that proposed constitutional changes and referendum questions respect constitutional boundaries and are presented with clarity and fairness to voters,” the justices stated.
Another blow to land-based casinos prospects in Ecuador
This is not the first time President Daniel Noboa has proposed reopening casinos in Ecuador.
In January, he withdrew a planned question for the 2024 referendum that would have asked voters about lifting the casino ban. Noboa explained that, given the country’s rising civil unrest, it was not the right time to include the casino issue, with the focus instead placed on questions related to combating organized crime.
Meanwhile, Ecuador has already introduced changes to its online gambling sector. In the first half of 2024, 65 companies registered to pay the newly implemented 15% gross revenue tax, which took effect on 1 July.
Additionally, under Executive Decree No. 313, player winnings are now subject to a 15% withholding tax.
