Casinos in Ecuador

Introduction

Ecuador is known for things like access to the Galapagos Islands and Yasuni National Park - one of the most bio-diverse places in the world and part of the sprawling yet constantly shrinking Amazon Rainforest.

Ecuador has a complicated relationship with land-based casino gambling - it’s currently not available. While the country was once home to more than 30 casinos and various other gambling establishments, a major change happened in 2011 when gambling was banned following a public referendum. The casino closures impacted the country heavily with job losses and a loss of government revenues as well as creating concerns about illegal gambling.

Please check online for the current state of affairs if you plan to visit the country as the security situation has been in flux as the government cracks down on certain activities and some elements push back.

Tourism, Industry, and Economy of Ecuador

Ecuador is a very rich country in terms of natural beauty and culture, and that makes it a popular tourist destination. However, the country hasn’t been able to take advantage of tourism’s economic potential like some other countries in the region have. Tourism accounts for less than 3% of GDP and under 5% of jobs. - those numbers place it among the lowest rates in the region.

Ecuador’s geography includes the Amazon Rainforest, the Andes Mountains, and the Galápagos Islands. The Amazon offers travelers opportunities to experience rare cultures and biological diversity. The Andes form a mountainous barrier running from north to south splitting South America into two parts. The range crosses six different countries other than Ecuador including Argentina, Venezuela, Peru, Colombia, Chile, and Bolivia. Indigenous markets are a magnet for curious shoppers and cities like Quito and Cuenca create indelible memories for visitors. Of course, the Galápagos Islands are known the world over for their unique wildlife and unspoiled habitats, drawing nature lovers and researchers alike from all around the world.

With no active casinos and a relatively small tourist sector, Ecuador's economy is mostly based on petroleum exports, agriculture, and internal services. Exports include bananas, flowers, shrimp, and cocoa.

Some of the most important tourist centers include Quito, the capital city with well-preserved colonial architecture and a great arts scene; Guayaquil, the country's largest city and an important economic center; and Cuenca (Santa Ana de los Ríos de Cuenca) which is famous for its historical significance (est. 1557) and atmosphere. Other destinations include the coastal resort town of Salinas and the highlands town of Baños. Baños is known for its hot springs, an active volcano, and as a gateway to the Amazon basin..

Reestablishing casinos in Ecuador might give a major boost to tourist centers, such as Quito, Guayaquil, Cuenca, Salinas, and even Baños. These regions could use a financial shot in the arm from increased tourism revenues, enhanced infrastructure, and job creation, especially in hospitality and entertainment. However, recent developments have made the situation much more complicated.

Fluid Security Situation

In early 2024, President Daniel Noboa declared a state of emergency in five coastal provinces—El Oro, Guayas, Los Rios, Manabi, and Santa Elena—due to "internal armed conflict." This 60-day emergency measure was the second security-based declaration by Noboa since he took office. It came in response to escalating violence and other crimes, worsened by the escape of a drug kingpin from prison which led to unrest on the streets and targeted violence.

With the reality on the ground, reintroducing casinos would have to be considered very carefully now. As fate would have it, the president had introduced a proposal to return casinos to Ecuador a few months before the 2024 declaration of a state of emergency. One of the eleven questions his proposal asked the Constitutional Court would have appeared in a nationwide referendum. It read, “Do you agree with allowing the operation of casinos, gambling halls, betting shops, or businesses dedicated to the operation of games of chance, under the conditions detailed in the Annex to question 11?”

However, his proposal was later withdrawn over concerns about increasing violence and the potential for casinos to be used for money laundering by drug traffickers. Noboa emphasized that the focus should remain on addressing pressing issues like security, organized crime, and economic stability.

Online gambling is still available to Ecuadoran players but none of the operators are licensed or regulated by the local national government.

History of Gambling

In 2011, under Rafael Correa’s presidency, Ecuadorians voted in a referendum to ban gambling which passed with 46% of the vote, leading to the closure of all casinos and gambling halls with the last casino closing in March of 2012. This decision was part of a bigger movement against activities that were considered to be “morally questionable”. The Montecarlo, Quito's largest casino, was among the last to close, marking the end of an era for Ecuador's legal gambling industry. The ban was implemented over six months, affecting around 3,000 direct employees and approximately 22,000 indirect jobs. Concerns were raised about the potential rise of underground gambling operations, because horror vacui, as usually stated, "nature abhors a vacuum".

Popular Spots and Games (Before the Ban)

Before the 2011 ban, Ecuador was home to around 160 gambling establishments, including almost three dozen full casinos, bingo halls, and other gaming venues. These were popular among locals and tourists with games like slots, poker, blackjack, and roulette. The Montecarlo casino in Quito was probably the most well-known casino for high rollers. The casino closure and following additions to the penal code created a void in Ecuador's entertainment scene and deeply impacted the tourism and hospitality industries.

Online Gambling

Although traditional gambling venues have been banned, Ecuador's stance on online gambling is not as straightforward.

Ecuador hasn’t created a specific regulatory framework for online gambling, leading to an unclear legal environment commonly referred to as a “gray area”. Ecuadorian players are not forbidden from playing at offshore casinos https://jswqzs.com/casinos over the Internet simply because there are no laws addressing the pastime either way.

Conclusion

As a case study, Ecuador's experience with gambling points to a broad tension in all markets between regulation, economic concerns, and moral considerations. The 2011 casino and gambling halls ban marks an inflection point that saw the country change its approach to gambling. That change came about because of concerns over social issues and public morality. The president said he wanted a better life for kids and that he didn’t want to see their parent's money disappear into slot machines. Discussions around lifting the ban to recover lost jobs and to jumpstart the economy have been hushed by the government choosing to prioritize security and public order over economic concerns. The future of gambling in Ecuador remains unclear. For now, it seems as if the weight of potential criminal involvement and all that would bring has tipped the scale to the side of prohibition for the foreseeable future.