Ecuador registered 65 sports betting companies in the first half of 2024, as announced by the country’s Federal Revenue Service (SRI). These companies registered under the new tax regime, in force since July 1st, established by Executive Decree No. 313, published on June 28th.
This new legal framework imposes a significant tax burden. Sports betting operators, whether local or international, must pay a 15% tax on gross revenue.
Additionally, players’ winnings are subject to a 15% withholding tax. Operators have a period of six months to update their systems and comply with the new regulations.
SRI director Damián Larco highlighted in a recent interview that the majority of registered companies are of local origin, with only two international operators.
Larco also indicated that the actual number of active traders in the market could be even higher. The SRI is monitoring the sector closely to ensure that offshore operators apply for licenses at risk of having their IP addresses blocked.
Despite the increase in the tax burden, interest from operators remains high. The Ecuadorian government is considering further changes to gambling regulations, including lifting the ban on land-based casinos, which has been in place since 2011.
The proposal to regulate gaming was initially included by President Daniel Noboa in a public consultation, but was withdrawn due to civil unrest and increased conflicts with drug cartels earlier this year.
Regulation of sports betting in Brazil: collection and rules
In Brazil, the Betting Management System (Sigap) received 113 licensing requests from companies interested in operating sports betting and online games. The Ministry of Finance’s expectation is to raise more than R$3 billion just through the payment of grants.
Among the established rules, the need to pay a grant of R$30 million for each license stands out. Approved companies will be able to operate up to three betting platforms and will have their license valid for five years.
From January 1, 2025, only authorized companies will be able to operate legally in the country, while unauthorized companies will be considered illegal and will have restrictions on advertising and sponsorships.
Companies must meet strict criteria for legal qualification, tax and labor regularity, suitability, economic-financial and technical qualification. These rules aim to guarantee the safety of bettors and ensure that bookmakers have an adequate governance structure.
bet.br domain
The regulation establishes that authorized companies must operate exclusively on websites with the “.bet.br” domain. Thus, promoting a safe environment for bettors, with the prohibition of access by minors and measures against money laundering.
The Prizes and Betting Secretariat will monitor these companies through its own system, allowing the monitoring of bettors’ behavior and helping to control taxation.
