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Ecuadorian President Daniel Noboa announced that Ecuador is to have a national referendum on whether or not to reopen casinos and game halls in five-star hotels. The proposal has a social development component in that 25% of the revenue from such initiatives would go to child malnutrition programs and school meal programs.
Noboa announced a social media platform X, and local news outlets have reported that the vote could take place in December this year. The move resurrects a politically delicate issue in Ecuador, particularly given past scandals in the gaming industry.
Potential Scope: 134 Hotels Eligible
Should the referendum pass, the potential for operating casinos would be limited to five-star hotels or those close to achieving that status. Statistics gathered from global hotel registries indicate that Ecuador currently has 134 such hotels spread out in various zones.
According to travel website Booking, Quito is in the lead with 16 hotels that made the list, including well-known brands such as Hotel Plaza Grande, Arashá Spa, Casa Gangotena, and Mashpi Lodge. Guayaquil follows with nine, with well-known brands including Oro Verde Guayaquil, Hilton Colón Guayaquil, Radisson Guayaquil, Sheraton Guayaquil, and Wyndham Guayaquil.
Other notable hubs include Cuenca with eight high-end hotels such as Hotel Oro Verde Cuenca and Hotel Boutique Santa Lucía, and Manta and Loja with five qualifying hotels each. Tababela, Puerto Ayora, and Puembo each have four hotels, Manabí has six, and Imbabura has three. Ecuador’s highlands hold some 20 more of the same quality, and the Galápagos’ Santa Cruz Island has four, among them the Angermeyer Waterfront Inn and the Red Mangrove.
Constitutional Steps Required
Before the voters can render their opinion, the process must adhere to Ecuador’s constitutional provisions for referendums. The president must sign an executive decree convoking the popular consultation first and submit it to the Constitutional Court together with the exact text of the questions, along with relevant annexes.
The role of the Court is to review the proposal for constitutionality, to verify that the questions do not infringe on fundamental rights, do not address prohibited subjects, and meet the conditions of clarity, unity of subject, and transparency. Only with a favorable opinion of the Court can the National Electoral Council (CNE) formally call the vote.
This measure ensures the referendum is legally adequate and simple to understand for the voters, an aspect that is particularly important given the contentious nature of Ecuador’s gambling legislation.
A Sensitive Political Issue
The casino reopening controversy is not new. At the start of 2024, President Noboa also proposed the same thing through a national consultation but backed off after facing fierce opposition from political circles. Critics argued that the gambling business involves risks of fostering money laundering and strengthening ties with organized crime, including narcotics trafficking.
The proponents of casino reopening argue it could boost tourism, generate sizeable tax revenues, and create jobs, particularly in luxury hotels for foreign visitors. The critics, however, point out the social vices that would follow, like addiction to gambling and illegal financial activities.
If the referendum is approved by the Constitutional Court and passes at the ballot box, Ecuador could see the reintroduction of casinos for the first time in over a decade. The measure’s targeted restriction to five-star hotels is seen as an attempt to balance economic opportunity with regulatory control, potentially reducing the risks associated with less-regulated gaming environments.
For now, the proposal remains in its preparation stage, and the political climate and public opinion are most likely to have the final word in its destiny. The coming months will determine whether Ecuador’s citizens are ready to open their doors to casinos again under a model that has promised both economic growth and social investment, or if the country will stay the course with its current prohibition of gambling.
Source: YogoNet
