Ecuador has formalized the tax treatment of online gambling by confirming the application of a 15% VAT on digital betting services, under Circular NAC-DGECCGC26-00000004 issued on March 31, 2026, by the Servicio de Rentas Internas (SRI), led by Director General Alexandra Navarrete Ricaurte.
The measure, now being implemented in April, establishes clearer rules for both domestic and offshore operators in a market that had previously operated with fragmented tax criteria.
The circular explicitly includes sports betting and digital wagering services within the VAT framework, defining how the tax applies depending on the provider’s tax residency and the role of payment intermediaries. The move aligns with the fiscal strategy of President Daniel Noboa and the Ministry of Economy, headed by Sariha Moya.
While the reform does not create a full licensing regime, it significantly strengthens oversight of financial flows in the sector. Land-based gambling remains restricted following the 2011 national referendum and Executive Decree 873, which shut down casinos and gaming halls. In contrast, the online segment has expanded rapidly, prompting targeted regulatory action.
Sariha Moya
This framework has been reinforced by the 2026 Sports Law, which mandates full player identification, eliminates anonymous betting, and requires transaction traceability across all betting activities. It also prohibits participation by individuals directly linked to sporting events, reinforcing integrity safeguards.
Daniel Novoa
Market estimates place Ecuador’s sports betting sector at around US$70 million, with a significant share still operating outside direct supervision. The VAT measure is expected to improve tax collection and bring greater transparency to payment systems, while the UAFE continues to oversee anti-money laundering controls tied to financial transactions.
The reform introduces clearer fiscal obligations and strengthens the state’s ability to monitor the sector but stops short of establishing a comprehensive regulatory framework. Ecuador is moving toward partial formalization: taxing online gambling, enforcing traceability, and tightening financial oversight without fully opening a licensed iGaming market.
