Ecuador AG upholds land-based, online casino ban
The Attorney General's Office has issued a decisive statement aimed at closing any legal loophole for the operation of gaming halls in the country. Through Official Letter 16528, dated May 4, 2026, the body ratified that gambling represents an activity with an illicit object in civil matters. This definition remains absolutely valid, regardless of whether the administration of such spaces pursues a commercial economic benefit or if it is presented under a social assistance structure.
The ruling comes in response to a formal query raised by the Junta de Beneficencia de Guayaquil, an institution that currently holds the sole legal authorization to manage lotteries in Ecuadorian territory. With this pronouncement, the State reinforces the position adopted after the 2011 popular consultation, which led to the general prohibition of sportsbooks throughout the national territory and marked a before and after in the local entertainment industry.
The debate on the legality of these establishments had recently gained relevance after the appearance of venues in Guayaquil that sought to operate under the protection of social foundations. The most publicized example was that of the so-called Casino del Sol, located next to the Sheraton Hotel, which tried to justify its activity as a means of fundraising for the Ecuadorian Cystic Fibrosis Foundation. However, authorities determined the existence of an operating contract with the private firm SUNSETBET S.A.S. for the management of the venue, which led to its definitive closure by the Municipality of Guayaquil last February and the initiation of a fiscal investigation.
The Attorney General's Office clarified that, although the distinction between for-profit and non-profit entities is relevant for the criminal sphere according to Article 236 of the Comprehensive Organic Penal Code (COIP), this difference has no effect on the civil or administrative level. In legal terms, the prohibition of gambling remains the general rule and does not admit exceptions based on the social purpose of whoever promotes it. Therefore, no Police intendancy or municipal government has the legal authority to grant licenses or operating permits for casinos, whether physical or online, outside of cases expressly authorized by law.
Finally, the institutional body urged the Attorney General's Office, the Financial and Economic Analysis Unit (UAFE), and the National Customs Service of Ecuador to actively intervene in investigations related to these establishments. The objective is to supervise not only the irregular operation of the venues but also to guarantee total transparency regarding the origin of the funds used in this type of activity, shielding the Ecuadorian regulatory framework against any attempt to evade the norm through alternative organizational structures.
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