In a surprising move, the president of Ecuador, Daniel Noboa, has presented a referendum project to the Constitutional Court. The proposal includes various points, one of which is the reopening and operation of casinos, betting shops and in-person gambling halls.
This proposition is part of a package of 11 questions that will be processed by the Constitutional Court and eventually put to a vote by the citizens.
The history of gambling in Ecuador has been a tumultuous one. The prohibition and elimination of in-person gambling halls were championed by former president Rafael Correa, who successfully passed the measure through a popular consultation on May 7, 2011. Correa justified the ban by stating that it would create a “healthier environment” for young people and protect families from the financial burden caused by gambling addiction.
As a result, the operation of casinos, gaming halls and betting shops became a criminal offense under the Penal Code, which was approved in October 2013. Those found managing such businesses could face imprisonment for one to three years, as well as hefty fines. This strict stance on gambling has remained in place until now.
Question 11 of the referendum poses the following to the citizens: “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?”
The referendum proposal must first undergo analysis by the Constitutional Court, which will determine whether the issues raised can be decided via direct democracy or if an amendment to the Magna Carta is required. The court has a 20-day deadline to provide an opinion on the matter. If an amendment is deemed necessary, the Executive branch may submit a new proposal. Assuming the proposal is approved, the president will issue an executive decree, and the National Electoral Council will have 60 days to initiate the electoral process. If all goes according to plan, the referendum could take place by the end of March.
If the referendum passes and the ban on casinos and gambling halls is lifted, it would mark a significant turning point for the gambling industry in Ecuador. The reopening of these establishments would have both positive and negative consequences for various stakeholders.
One of the main arguments in favor of allowing the operation of casinos and gambling halls is the potential economic boost it could provide. These establishments have the potential to attract both local and international tourists, who would contribute to the local economy through spending on accommodation, dining, entertainment, and other services. The influx of visitors could create job opportunities and stimulate economic growth in regions where these establishments are allowed to operate.
Another significant factor to consider is the potential tax revenue generated by the gambling industry. If casinos, gambling halls and betting shops are legalized, the government could impose taxes on the operators’ profits. These tax revenues could be allocated towards public services, infrastructure development and social welfare programs, benefiting the entire population.
However, critics argue that these establishments can lead to an increase in gambling addiction. There is concern that vulnerable individuals, such as low-income earners and young people, may be disproportionately affected by the accessibility of gambling options. It will be crucial for the government to implement responsible gambling measures and provide adequate support for those affected by gambling addiction.
