The Organic Law of Communication, which forbids the advertising of “any type of betting system or sports predictions,” was subscribed to and issued by the Ecuadorian government, under the leadership of President Guillermo Lasso. Ecuador Bans Betting Advertising
Article 56, which went into effect on August 23 as soon as it was signed, states that “misleading advertising is prohibited, as well as any type of advertising or propaganda of child pornography, cigarettes, controlled substances, and any type of betting system or sports predictions.”
LigaPro, the country’s biggest football league, said in a statement that the action was part of a “disturbing trend on the part of the current government with regard to the sports industry.”
We want to express our deep rejection and our most vigorous protest at the recent inclusion of a ban on the advertising of sports predictions in the Regulations to the Communication Law.LigaPro Statement
LigaPro is currently sponsored by local sports betting operator Bet593, and the ban would have a direct impact on the industry.
In the statement, the organization discussed football’s “essential place” in society and emphasized Ecuador’s sports betting industry’s cooperation, which served as “a vital way to ensure necessary income” for football teams following the pandemic.
This fresh attack on investing, entertainment, and football is unequivocally rejected by us. LigaPro continued, “We demand adherence to our core values and recognition of the significance of advertising investment in sports forecasting for the survival of our sport. If necessary, we will pursue legal action.
The prohibition will put more pressure on the sector, which will be subject to new taxes starting in 2024 after Ecuador’s constitutional court authorized sports betting levies in June.
According to the rule, sports betting platforms are required to pay a 15% tax on gross gaming revenue. Additionally, operators are in charge of deducting a 15% withholding tax from player wins. If a wager is placed through an operator who does not reside in Ecuador, the player is responsible for paying 15% of the applicable tax at the time the bet is placed. Ecuador Bans Betting Advertising