The possibility of the reopening of casinos and casinos in Ecuador, after they were banned in 2011 by a public debate in the government of Rafael Correa, is causing reactions in different sectors for and against.

On the one hand, the national tourism and hotel sector sees an opportunity to recover jobs lost twelve years ago, create new domestic and foreign investments and even promote the creation of an international air hub such as Peru and Panama along the way. , analyzed Holbach Muñeton, president of the National Federation of Provincial Tourist Chambers of Ecuador (Fenacaptur).

The return of casinos to Ecuador, Daniel Noboa’s popular consultancy proposes to create jobs, since 25,000 jobs were lost after the closure

The possible return of these companies is also discussed through a public consultation, which this time was presented by President Daniel Noboa, as part of the eleven questions that he sent to the Constitutional Court on January 2, which has 20 days, counting from the time when it confirms knowledge of the request, to pass its decision on constitutionality.

The question related to casinos is number 11: Do you agree that the operation of casinos, gaming rooms, bookmakers or companies dedicated to games of chance is allowed, under the conditions set out in the Appendix to question 11?

For Muñeton, the consultation is positive and he has already announced that the tourism and hotel sector will support Yes. industry, trade.”

Because? The presenter assured that no one travels to a country where there are no such activities. He reminded that a large number of tourists, especially from Asia (China, South Korea and Japan), who intended to come to the country in recent years have returned because they are moving in the segment that is looking for shopping or casinos. “Having a good infrastructure in the country and working in an orderly way with the experience gained, of course we lost time, you will understand how much this (closure of casinos) has hurt Ecuador.”

Ecuador without gambling from today, but with more unemployed

He estimated that due to the lack of these attractions, Ecuador lost more than 400,000 tourists a year, since 2011, or about 4.8 million visitors. In 2011, the question was whether they agreed with the country banning businesses dedicated to games of chance, such as casinos and arcades, and it won with 45.76% to 41.68% of the vote. Not. Consequently, in March 2012, the casinos ceased operations.

Muñeton assured that this closure caused the loss of 12,000 jobs in the hotels. “People who suddenly lost their jobs, businessmen who lost their capital due to the misuse of the government of the time.” Regarding the loss of jobs, one of the reasons presented by President Nobo to the Constitutional Court in question 11 is that the closure of the activity “had a negative impact on the creation of jobs, since 250,000 (sic) jobs were lost after 2011, which established in 160 playhouses across the country,” citing the author’s publication Bloomberg line which means that 25,000 jobs have been lost.

The reactivation of casinos would create more than 20,000 jobs

Meanwhile, Muñeton assured that today the sector estimates that the opening of the activity will easily generate 20,000 new jobs with the existing infrastructure, “without taking into account the new investments that could come and additionally the new hotels that will be built and the new casino. He revealed that there are already domestic and foreign investors who are talking to hotels about the possibility of opening casinos, “that created motivation”.

Creation of an international air hub

Another activity that would be boosted by this reactivation would be passenger air transport. Muñetón believes that Ecuador could create an international hub that would have direct flights to Ecuador so that those who want to come to the country precisely for the casinos.

“You have to work in an international hub… the one in Panama operated by Copa, the one in Peru, the one in Miami operated by American Airlines. Everything that already has an international hub changes from day to night and together with the casino we will grow geometrically”, said the tourism expert.

He explained that a direct flight to Panama costs about $600, but a connecting flight to Ecuador can cost up to $2,200. “That is the difference of an international hub, the user, the tourist, wins, the state wins, the airline wins, everyone wins because there is greater mobilization. That is why the expectations for investment in casinos are extremely high, the workforce that will be generated is large, a list should be made of how many casinos could be opened and it will take a significant turn.”

Money laundering, one of the risks of allowing casino activities

Reactions against them stem from the fear that these jobs could be used for money laundering.

For Roberto Andrade, former director general of the Financial and Economic Analysis Unit (UAFE), casinos are cash-intensive businesses, where most transactions are done this way. For this reason, he stated, they carry the risk of money laundering all over the world. “So much so that the international standard set by the FATF (Financial Action Task Force) includes casinos as a non-financial activity that must be subject to regulation and supervision to prevent money laundering.”

If the activity is allowed back into the country, Andrade recommended three actions to continue to regulate and monitor it:

Projections show that Ecuador’s economy will grow by 2% in 2024, while the number of employed people in the region will grow by only 1%.

Meanwhile, Muñeton defended the activity and assured that with the experience gained, the business will now be much more orderly and will be much more careful about casinos that are managed in a more technical way. “Casinos should be in luxury hotels, with rules that say where casinos should be, whatever they say, but this helps Ecuador.”