Foundations, application, and future of legal regulation of digital sports betting platforms in Ecuador

Abstract

Business development aims to meet the economic needs of a population, but certain activities like sports predictions face debate due to potential negative impacts and its confusion it with gambling, which is prohibited in Ecuador. Despite having longstanding historical roots and now primarily operating through digital platforms, sports predictions should not be equated to gambling under Ecuadorian law. This distinction is crucial, especially following the 2011 referendum that banned gambling activities such as casinos and gaming halls. In Ecuador, sports predictions have emerged as a growing economic activity, recognized by the Law for the Strengthening of Family Economy, which established a single tax for operators.

The Office of the Attorney General has clarified that sports predictions, based on sports knowledge and analysis, do not constitute gambling under criminal law, thereby allowing for its regulation and operation under fiscal supervision. Internationally, while the European Union does not regulate gambling broadly, including sports predictions, countries like the United Kingdom or France have established specific legal frameworks, including the creation of regulatory bodies. In Latin America, Colombia has implemented a successful regulatory model with COLJUEGOS, overseeing and regulating gambling activities, including sports predictions, generating significant revenue allocated to public health.

In summary, sports predictions represent a legitimate form of economic activity in Ecuador, subject to specific regulations that clearly differentiate these practices from gambling. With appropriate legal frameworks and corresponding oversight, this industry can positively contribute to the local economy while safeguarding public interests and preventing negative impacts associated with irresponsible gambling.