In a jaw-dropping ruling that’s a real kick in the teeth for luxury hoteliers, Ecuador’s Constitutional Court has put a kibosh on the government’s plan to bring back casinos and game rooms to five-star hotels. The court’s decision isn't just a minor setback—it's a major blow to a bold strategy aimed at injecting new life into the tourism sector and raising cash for a crucial social cause.
The whole shebang was bundled into a single referendum question, a move the court slammed as a "legislative train wreck". The proposal had three distinct parts: reviving casinos, slapping a 25% tax on sales, and earmarking the funds for child malnutrition programs. The court found that lumping these issues together forced voters to give a blanket answer, which they said was a total breach of a voter's freedom to choose.
The court's ruling didn't pull any punches, also calling out the government for a weak justification. The judges argued there wasn’t enough background info or a clear link between bringing back casinos and tackling malnutrition. This lack of coherence, according to the court, could have easily confused voters and undermined their basic rights. The judges made it crystal clear: any public consultation has to be transparent and precise, respecting the integrity of the vote.
Ecuador opens the door to a high-end casino market: a unique opportunity for international capital
While this puts the brakes on using in-person gaming as a new revenue stream and tourist magnet, the government isn't throwing in the towel. They still have the option to re-draft the initiative into separate questions. For now, though, this decision is a wake-up call, signaling that any return of casinos to Ecuador will require a more organized, legally solid debate.
