Ecuador imposes new licensing and financial requirements for sports betting operators

Ecuador has issued a new 306-article regulatory update that tightens control over sports betting activities in the country. For operators and PSPs serving high-risk verticals, the key point is simple: local access now depends on a formal license, recurring annual fees, and a heavier compliance file.

1. Under Article 240, sports betting operators must hold an operating license issued by the competent authority. The license is valid for up to five years and can be renewed for equal periods at the operator’s request.
2. The annual cost is set at the equivalent of 655 unified basic salaries. Based on the 2026 values, that comes to USD 315.710 per year for each year of license validity.
3. The application process is not light-touch. Companies must submit a formal request to the highest authority of the sports regulator, including corporate information, tax identification, and legal representation details. Ecuadorian companies must show that sports betting is expressly included in their corporate purpose, while foreign companies must prove legal domicile in Ecuador and authorization to operate in the country.
4. Applicants also have to prove residence and domicile in Ecuador, keep their tax status up to date, and comply with requirements on beneficial ownership and shareholding structure. In other words, the regulator wants to know who is behind the company, and it wants the paperwork current.
5. Financial supervision is getting tighter too. Operators must provide income tax filings, withholding tax on prizes, and VAT returns for the relevant fiscal years where applicable, along with audited financial statements prepared by external auditors. They also need to demonstrate sufficient equity to support the scale of their operations, and submit sworn declarations on the lawful origin of funds from shareholders or the individual applying for the license.

The regulation also introduces technical requirements for sports betting platforms. Companies must prove ownership or exclusive use of the internet domain through the relevant documentation, which is the sort of detail that sounds minor until it becomes the thing a licensing review hangs on.