The Ecuadorian Constitutional Court has rejected a proposal to include a question on reopening land-based casinos in the country’s December referendum. While the matter may still return in revised form, the court ruled the current draft did not comply with constitutional standards.
Court’s Rationale
President Daniel Noboa submitted seven questions for the upcoming national vote on August 5, one of which asked citizens whether they supported the return of casinos. Ecuador has a history of frequent referenda, often covering issues from defence and finance to criminal law.
Casinos were banned in a 2011 referendum, but Noboa suggested allowing them again in five-star hotels, with revenues taxed at 25% to fund school meal programs and reduce child malnutrition.
The Constitutional Court struck down the proposal for two key reasons:
- The preamble was unclear, leaving voters without sufficient context to answer.
- The single question bundled three separate issues — reopening casinos, imposing a new gambling tax, and earmarking revenues — limiting voter freedom to support some aspects but reject others.
The court stated that referendum questions must remain clear and transparent:
“With these decisions, this body ensures that proposals for amendments to the constitutional text and those for referendums respect constitutional limits and are formulated with clarity and loyalty to the voters.”
A Setback for Casino Backers
This is not the first time Noboa has raised the possibility of reintroducing casinos. In early 2024, a similar proposal was removed from that year’s referendum amid rising civil unrest. At the time, the president prioritized questions related to public security and organized crime.
Despite resistance to land-based casinos, Ecuador has moved ahead with online gambling reforms. Since July 2024, companies operating in the digital sector have been subject to a 15% gross revenue tax, with 65 firms registering in the first half of that year.
Outlook
The rejection represents another blow to land-based casino supporters, though Noboa’s administration could still present a revised proposal that complies with the court’s framework. Until then, Ecuador’s gambling industry will remain limited to its newly regulated online market.
