land based casinos to return

[rodskee]

land-based gambling was once banned in ecuador 14 years ago but is now set to return to the country. the government of ecuador seems to want to change its mind after decade long censorship of gambling as they propose to allow casinos within five star resorts. the catch? they are planning to tax casinos 25% of its sales which i think is high but they say the money from this industry will be used to combat child malnutrition.

casinos are a cash grab and governments will realize this sooner or later. it’s a lucrative industry after all. i just wonder if the 25% tax rate will deter casino owners or are they too excited to operate in ecuador to care?

see news here.

[cryptomaniac_xxx]

land-based gambling was once banned in ecuador 14 years ago but is now set to return to the country. the government of ecuador seems to want to change its mind after decade long censorship of gambling as they propose to allow casinos within five star resorts. the catch? they are planning to tax casinos 25% of its sales which i think is high but they say the money from this industry will be used to combat child malnutrition.

casinos are a cash grab and governments will realize this sooner or later. it’s a lucrative industry after all. i just wonder if the 25% tax rate will deter casino owners or are they too excited to operate in ecuador to care?

see news here.

Doesn't matter for this casinos if they are going to pay that 25% tax as long as they are making money. And if the government says that the tax will be put into good used then good. And for sure casinos are willing to pay hiding under that guise.

So gonna be a win-win for both the government and the casino. Although for anti-gambling, it might put the country to a worst situation as obviously the locals might frequent the casino and could fall into the addiction.

[Dunamisx]

land-based gambling was once banned in ecuador 14 years ago but is now set to return to the country. the government of ecuador seems to want to change its mind after decade long censorship of gambling as they propose to allow casinos within five star resorts. the catch? they are planning to tax casinos 25% of its sales which i think is high but they say the money from this industry will be used to combat child malnutrition.

The catch indeed, why do they think that the 25% task should be what they are going to depend on in taking care of child malnutrition in the country, does it means that government has no plan on such before and until now, if they truly recognized such as a task for them to fulfill, then they shouldn't depend on the gambling industry they have once banned it's operations for alleviating child malnutrition projects in the country.

 What if a number of them do not comply, moreover the 25% is too high from what they earn as income for paying their task, maybe most operators will still appreciate and maintain online platforms than the physical casinos for gambling services.

[Justbillywitt]

If Ecuadorians are known to be gamblers, the casinos don't mind paying the 25% tax because they are going to make huge amount of money. And from what you are saying the targeted audience are the rich class, because people that can only visit 5 star resorts are people that are financially buoyant. Gambling is a lucrative industry and with the money the government will make from taxes, soon they will allow the casinos in other places outside the 5 star resorts.

[coin-investor]

land-based gambling was once banned in ecuador 14 years ago but is now set to return to the country. the government of ecuador seems to want to change its mind after decade long censorship of gambling as they propose to allow casinos within five star resorts. the catch? they are planning to tax casinos 25% of its sales which i think is high but they say the money from this industry will be used to combat child malnutrition.

It’s not yet final; it will still undergo a referendum, but it’s likely to win approval. The casino operators will likely accept the 25% tax on their sales as long as the government promotes these casinos for tourists.

Casinos are a job generator for any country because they not only employ people but also create industries that revolve around them.

I’m surprised to find out that the current currency of Ecuador is the US dollar. They adopted it in 2000 after the country suffered economic instability and hyperinflation.

[_act_]

land-based gambling was once banned in ecuador 14 years ago but is now set to return to the country. the government of ecuador seems to want to change its mind after decade long censorship of gambling as they propose to allow casinos within five star resorts. the catch? they are planning to tax casinos 25% of its sales which i think is high but they say the money from this industry will be used to combat child malnutrition.

They want to use what they banned for the benefits of the country which is about combating child malnutrition. We should know that what the government deemed wrong may be right, that is the world that we are. You will see government do something today, and later they will change it to the opposite, just like this one.

I think not only land based casinos that would be allowed, or online casinos were allowed before?

[Sticky Bomb]

the catch? they are planning to tax casinos 25% of its sales which i think is high but they say the money from this industry will be used to combat child malnutrition.

Funny how they've turned to gambling to help salvage the present situation, what a dramatic way for gambling to return in Ecuador. The government would always find excuses to execute its intentions. That's what they would hold on to while lifting the can while in reality they're tired of losing continuously to offshore casinos.

casinos are a cash grab and governments will realize this sooner or later. it’s a lucrative industry after all. i just wonder if the 25% tax rate will deter casino owners or are they too excited to operate in ecuador

25% is much, its much on the high side but casino owners would weigh in their options or better still go for an open dialogue with the government. The clear picture I see here is that they want the casinos to return, other constraints can be dialogued and a better agreement reached.

[Floxynice]

It took the government of Ecuador 14 years to realise that banning gambling does not stop their citizens from gambling, rather it has been they (the government) that has been losing all along. Now, they are fully back to take advantage of the income accruing from labdbased gambling operations in the country.

We should not get so excited to think that the government is lifting the ban to encourage fun and entertainment in the country, the reason behind it is very clear.

While they lift the ban, they should ensure to provide laws and regulations that will protect the the gamblers and casinos, inorder to strike a balance in the country.

[Rikafip]

casinos are a cash grab and governments will realize this sooner or later. it’s a lucrative industry after all. i just wonder if the 25% tax rate will deter casino owners or are they too excited to operate in ecuador to care?

Gambling tax is generally high in if not all, then almost all countries so I don't think that this 25% tax rate Ecuador its going to be a deterrent. At least not for serious companies.

Online gambling is fine and dandy, but nothing compares to feeling of going to a brick and mortar casino with a couple of buddies. 

[Shinpako09]

Whether it’s truly to combat malnutrition or not, I believe it’s more than that. With that huge tax, they definitely don’t want to miss out. In the first place, they shouldn’t have banned it. Maybe if not for the growing online casino industry, they wouldn’t have lifted the ban. Upon checking, online casinos aren’t forbidden in their country. Maybe they just realized they were missing out on the tax revenue that physical casinos could generate.

[Zlantann]

If Ecuadorians are known to be gamblers, the casinos don't mind paying the 25% tax because they are going to make huge amount of money. And from what you are saying the targeted audience are the rich class, because people that can only visit 5 star resorts are people that are financially buoyant. Gambling is a lucrative industry and with the money the government will make from taxes, soon they will allow the casinos in other places outside the 5 star resorts.

The target will be tourists and well-to-do Ecuadorians. The country might have observed how much they are losing from banning brick-and-mortar casinos and decided to give it another try. Since the tax will be spent on children's nutrition projects, that's a good move. Gamblers also like to have options because there are people who enjoy using physical casinos. The quest to unban physical casinos is an item in the referendum; hopefully, it might get the needed votes.
Ecuador is going through a difficult time currently with bomb blasts in few areas. Protesters have taken over some areas and the police are trying to stop them. I hope they overcome these challenges and find peace.

[Sanitough]

I’m a bit confused about that 25% sales figure. It’s a land-based casino so what exactly are they “selling”?

I think the more appropriate term should be revenue, since what they offer is a service which is gambling. Any revenue from that would be taxable, probably at that same rate mentioned.

If we’re talking about sales, that might only apply to items like food, drinks, or other merchandise inside the casino.

[dunfida]

casinos are a cash grab and governments will realize this sooner or later. it’s a lucrative industry after all. i just wonder if the 25% tax rate will deter casino owners or are they too excited to operate in ecuador to care?

Gambling tax is generally high in if not all, then almost all countries so I don't think that this 25% tax rate Ecuador its going to be a deterrent. At least not for serious companies.

Online gambling is fine and dandy, but nothing compares to feeling of going to a brick and mortar casino with a couple of buddies. 

Casinos have always been built around profit the entire system is designed to pull money in while giving just enough back to keep people playing governments see that clearly but they also see how much revenue the industry can generate through taxes and tourism a 25 percent tax rate sounds steep but compared to what casinos can earn it’s not exactly a wall it’s more like a toll serious operators usually factor that in from the start since gambling is heavily taxed almost everywhere the business model survives by adjusting payout ratios and player incentives not by escaping taxes.

Ecuador stepping into this space shows a balance between moral restraint and economic temptation after all banning gambling completely just pushes it underground or online where regulation and revenue both disappear by allowing casinos to operate under high taxes the government keeps control and gets a share of the profit it’s the same logic used in alcohol or tobacco industries the cash flow is too attractive to ignore even when the risks to consumers are clear.

[Betwrong]

land-based gambling was once banned in ecuador 14 years ago but is now set to return to the country. the government of ecuador seems to want to change its mind after decade long censorship of gambling as they propose to allow casinos within five star resorts. the catch? they are planning to tax casinos 25% of its sales which i think is high but they say the money from this industry will be used to combat child malnutrition.

casinos are a cash grab and governments will realize this sooner or later. it’s a lucrative industry after all. i just wonder if the 25% tax rate will deter casino owners or are they too excited to operate in ecuador to care?

see news here.

25% is too much for the government to ask. No honest casino could cope with that. What they should ask, if they want to use the money to combat child malnutrition, is no more than 10%. Maybe in that case some casino owners would be excited.

[Wapfika]

casinos are a cash grab and governments will realize this sooner or later. it’s a lucrative industry after all. i just wonder if the 25% tax rate will deter casino owners or are they too excited to operate in ecuador to care?

see news here.

It’s true that gambling industry generates revenue a lot. It’s not bad per se rather it’s just need to be regulated properly to avoid serving the most vulnerable residents which is the underage or the poor.

In my country, National lottery profit helps a lot to the poor since it provides financial support to major medical operations to poor that need immediate operation.

I’m not against gambling. It just need to be regulated properly.

[boyptc]

they are planning to tax casinos 25% of its sales which i think is high but they say the money from this industry will be used to combat child malnutrition.

Others I think are going 30% and even more, they know that the revenue from the casinos are quite high and so they're putting that much tax to incentivize them.

casinos are a cash grab and governments will realize this sooner or later. it’s a lucrative industry after all. i just wonder if the 25% tax rate will deter casino owners or are they too excited to operate in ecuador to care?

They are excited.

It's another market for them to cater and so, the operations will just have to pass on the taxes for the customers to shoulder it.

That's still a win for the casinos that will operate there which is the usual thing about taxes, they always pass it to the customers.

[danherbias07]

It will not stop them. 25 percent is just a small amount for them, considering the losses the gamblers will make in their casino.

It looks high for us because we are not the ones who are in business, but those who know that it ain't that high. They can somehow cover it if they have control over everything.
Take slots, for example. You roll 100 bets and you get nothing. That's one proof that they can do 25 percent even if it meant making the gamblers angry over a non-fair treatment to them.

[qwertyup23]

casinos are a cash grab and governments will realize this sooner or later. it’s a lucrative industry after all. i just wonder if the 25% tax rate will deter casino owners or are they too excited to operate in ecuador to care?

A 25% tax rate for land-based casinos? That's going to be superbly difficult in attracting investors and businessmen given that it will bring more harm than good.

The irony is- Ecuador only prohibited land-based casinos but they did not in fact ban online gambling in their country.¹ Even if this will be considered a good move for their government, I still doubt that land-based casinos would be popular given the high tax rate imposed upon them.

At the end of the day, it is all about balancing the interest of the state in garnering revenue and the welfare of their people. I do believe that it's either a YES or NO situation that could benefit them in the long-run.


1 https://igamingbusiness.com/casino-games/land-based-casino/ecuador-land-based-casinos-referendum/#:~:text=Ecuador%20online%20reform%20shows%20progress,effect%20on%201%20July%202024.

[₿itcoin]

land-based gambling was once banned in ecuador 14 years ago but is now set to return to the country. the government of ecuador seems to want to change its mind after decade long censorship of gambling as they propose to allow casinos within five star resorts. the catch? they are planning to tax casinos 25% of its sales which i think is high but they say the money from this industry will be used to combat child malnutrition.

casinos are a cash grab and governments will realize this sooner or later. it’s a lucrative industry after all. i just wonder if the 25% tax rate will deter casino owners or are they too excited to operate in ecuador to care?

Ecuadors Constitutional Court has just given a red card to a proposed referendum to reopen casinos.

Why?

Sayin 25% tax, reopening &  where the money will go, all packed into a question package, which is not at all clear. So for now this deal is in limbo, the game is hanging

Coming to your point, Yeah, 25% tax is well earned or imposed. Some operators may see this &  withdraw from the game or back off.  But if the market is a hit, if the potential is huge, many people will not stop betting or jump to take risks.  The government always thinks of the casino as a money printing machine ,,  absolutely cash cow!  But dude, the real thing is, execution, regulation &  public acceptance,  these three things make or break the game.

[Free Market Capitalist]

Doesn't matter for this casinos if they are going to pay that 25% tax as long as they are making money.

Right but the piece of news talks about a 25% tax "on sales". If that means 25% on every bet, they'll have to do the math, plus anyone who's used to gambling in Vegas will see that they lose much faster in Ecuador. In Vegas, casinos pay between 3.5% and 7% of revenue, depending on the amount. If 25% refers to that, it's typical nonsense from politicians who legislate on something they don't understand in order to collect as much as possible and kill the goose that lays the golden eggs.

Coming to your point, Yeah, 25% tax is well earned or imposed. Some operators may see this &  withdraw from the game or back off.  But if the market is a hit, if the potential is huge, many people will not stop betting or jump to take risks.  The government always thinks of the casino as a money printing machine ,,  absolutely cash cow!  But dude, the real thing is, execution, regulation &  public acceptance,  these three things make or break the game.

I agree.