New tax rules for sports betting operators

ECIJA Ecuador’s Tax and Investment Practice Group has published a new briefing note on the reforms to the Single Income Tax regime for sports betting operators, introduced by Executive Decree No. 422, published on 15 June 2026.

The legislation amends key aspects relating to the assessment and compliance with this tax. Among the main changes is the new tax base, calculated on the total revenue generated – including commissions – less any prizes paid out during the same period. A flat rate of 15 per cent will be applied to the resulting amount.

The reform stipulates that prizes paid may only be deducted where the corresponding tax has been withheld at source. It also provides that the withholding tax must be calculated on the total value of the prize won by the player in each predicted event.

The regulations also introduce obligations for non-resident operators, who must obtain a Unique Taxpayer Registration Number (RUC) and comply with tax returns, tax payments and other applicable formal obligations. However, it is clarified that obtaining the RUC does not, in itself, constitute a permanent establishment in Ecuador.

These reforms require operators to review their tax processes, particularly the settlement and withholding mechanisms applicable to the payment of prizes.

For further information or specialist advice, please contact our Tax and Investment Law team, comprising Paola Robalino, Jessica Dillon, Rodrigo Herrera and Carla Frías.