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A new scandal is brewing in Ecuador’s online gaming market, as the Junta de Beneficencia de Guayaquil has filed an official complaint against Ecuabet, one of the country’s largest sportsbetting operators, alleging irregular operations, improper licensing, and the use of a complex network of foundations and related entities that may have been used to circumvent taxes and regulatory requirements.
According to the local outlet Primicias, which had access to the formal complaint, the most serious accusation is that Ecuabet allegedly provided services for sports predictions using an expired foreign license. On its official website, the company said it was domiciled and authorized in Anjouan. This small island forms part of the Union of the Comoros, located off the coast of Tanzania. This authorization reportedly expired in May 2025, meaning that, for the time being at least, the operator does not hold a valid certification from the gaming authority of Anjouan.
Alleged Corporate Structures and Tax Advantages Under Scrutiny
The complaint also mentions what appears to be an intricate corporate environment around the operation of Ecuabet. According to the document, its structure includes 42 individuals and legal entities, such as the foundations Prosperar, Prosperar Salud, and Culturarte, in addition to more than 32 shareholders and representatives allegedly linked through the same legal advisors.
Junta de Beneficencia officials believe the arrangement raises red flags, especially considering financial behavior within these organizations. One of the most curious details is the notable hike in the revenue of the Prosperar Salud foundation, which grew from USD 34 million in 2022 to USD 95 million in 2024. The entity reportedly infers that since 2023, firms that provide services in sports predictions might have transferred their businesses to foundations as a tactical means of taking advantage of tax exemptions accorded to nonprofit institutions.
Historical Context of Regulatory Conflicts
Ecuabet has been at the centre of regulatory scrutiny before. A case alleging unfair competition in 2022 exposed a contractual relationship between the company and the Prosperar Foundation. At the time, Ecuabet was accused of offering prohibited online casino games within Ecuador, a country where such operations remain illegal. The dispute exposed a deeper connection between the betting platform and nonprofits.
In the same investigation, the Superintendence of Economic Competition rejected the argument of Ecuabet that its activities did not generate profits and were therefore in line to make donations to the Prosperar Foundation. Regulators questioned the sincerity and legality of these “donations“, claiming they might have served only as mechanisms for the company to attain tax exemptions to lighten the fiscal burden.
Case Moves to Prosecutors for Further Action
The Junta de Beneficencia has forwarded the entire case with the newly filed complaint to the Fiscalía, requesting a full investigation on grounds ranging from lack of proper licensure to fiscal impropriety. Authorities will now determine whether Ecuabet engaged in unlawful practices involving irregular revenue flows, misuse of nonprofit structures, or noncompliance with national tax and gaming regulations. As Ecuador continues to debate the future of its gaming legislation, the unfolding case against Ecuabet has shone a light on the need for increased oversight, renewed licensing frameworks, and improved overall transparency in a marketplace that is being shaped by digital platforms.
Source: YogoNet
