Ecuador constitutional court rejects casino question in December referendum
Summary
Ecuador’s constitutional court has rejected a proposed referendum question that would have allowed the reopening of land-based casinos, ruling it does not meet constitutional requirements in its current form.
President Daniel Noboa had included a question in a set of seven for a December referendum asking whether casinos within five-star hotels should be reopened and taxed at 25%, with revenue earmarked for school meals and anti-malnutrition programmes. The court found the question problematic for two reasons: the preamble was insufficiently clear and the single question combined three distinct issues (reopening casinos, creating a new gambling tax and specifying how proceeds would be allocated), which could constrain voters’ ability to disagree with parts of the proposal.
Key Points
- The constitutional court rejected the casino reopening question because the preamble lacked clarity, risking voter confusion.
- The question bundled three separate issues into one, limiting voter choice and breaching constitutional limits.
- President Noboa’s proposal targeted casinos in five-star hotels, taxed at 25% to fund school meal and child nutrition programmes.
- The question can be amended and resubmitted if rephrased to meet constitutional requirements.
- Previously, Noboa withdrew a similar casino question from a 2024 referendum amid civil unrest; meanwhile Ecuador has tightened online gambling rules with a 15% gross revenue tax and withholding on winnings.
Context and relevance
Referenda are a regular part of Ecuadorian democracy and are used to decide policy across defence, finance and criminal law. Casinos were banned after a 2011 referendum, so reopening them would mark a significant regulatory shift tied to fiscal policy and social programmes.
For the gambling industry and investors eyeing LATAM, the ruling signals that constitutional and drafting hurdles remain key barriers to land-based casino liberalisation in Ecuador. It also underlines continued government interest in extracting tax revenue from gambling — Ecuador already introduced a 15% tax on online operators and a 15% withholding on player winnings in 2024.
Why should I read this?
Quick hit: if you follow LATAM gaming policy or invest in casino/entertainment projects, this matters. The court’s decision shows reopening casinos isn’t a done deal — it’s about legal drafting and public buy-in, not just political will. We’ve read the ruling so you don’t have to dig through the legal text.
Author’s take
Punchy: The government wants the revenue and the optics of funding school meals, but Ecuador’s court has reminded policymakers that clarity and separation of issues are non-negotiable. Expect tweaks to the proposal rather than a straight pass-through.