Casinos return to the political, and now economic, discussion in Ecuador

The operation of casinos -prohibited in Ecuador according to a popular consultation in 2011 – returns to the political discussion in the country when this possibility is stated in one of the eleven questions of a popular consultation that the head of StateDaniel Noboahas been sent to the Constitutional Court for analysis.

“Do you agree that casinos, gaming halls, betting houses or businesses dedicated to gambling are allowed to operate, under the conditions detailed in the Annex to question 11?”reads the last question of the consultation that the Government hopes to carry out this first quarter.

The Executive considers that the impact of the prohibition of the aforementioned businesses, “It was the loss of jobs that were established in 160 gaming rooms nationwide.”

“Economic stability network”

He also points out that the operation of these businesses “It is an activity that can be regulated, focused and controlled by law.”

The approach indicates that its operation must have a zone delimitation, minimum investment amounts, infrastructure requirements, and a rate will be established for the benefit of mental health treatment and citizen security.

The authorization of casinos “It is proposed as a solution that, as long as it is carefully regulated, will contribute to strengthening economic stability and consequently to mitigating insecurity in dangerous areas,” says the Executive.

Furthermore, the opening and operation of these businesses not only generates direct job opportunities, but also indirect jobs in related sectors such as hospitality and associated services.

“This flow of employment not only boosts the local economy, but is also the means to a network of economic stability for individuals and entire communities,” the Executive argues.

Noboa presented the eleven questions of the consultation as a mechanism to offer security, justice and employment, but economic analyst Alberto Acosta Burneo told EFE that, although the eventual reopening of entertainment companies generates targeted employment, it is not a solution to that problem. overall in the country.

For Noboa, “a casino generates employment”especially in provinces like Santa Elena, “in which more than 25,000 families were practically left on the streets when the casinos ran out”said this Thursday, pointing out that they want to make Ecuador “more attractive for tourism investors (…), a place of greater employment and greater development.”

Possibility of crimes?

Former president Rafael Correa (2007-2017), in whose government casinos were banned, maintains that question 11 is dangerous because “If there is something that attracts organized crime, it is money laundering, and where money is laundered the most is in casinos, in games of chance.”

Since Ecuador is a dollarized country, Correa believes that opening casinos is “the perfect formula” so that the country is “a money laundromat and the promotion of organized crime.”

Security expert Fernando Carrión agrees with Correa, who commented that “These entertainment industries are associated with forms of money laundering, in some cases with drug trafficking, in others with corruption, and in others with non-payment of taxes.”

But Acosta Burneo differs with Correa’s position: “It is absolutely false, rather what we are seeing are these prejudices of a group of people who call themselves left-wing, but who have extremely conservative morals, who are horrified by the thought of gambling and casinos, but rather from a “moralistic ideological prejudices”.

He noted that casinos and other entertainment activities exist in the world and if they are properly regulated, there is no problem.

“The same could be said about banking activity, but that is why it is done and regulations are adopted to prevent money laundering. We could say the same about real estate activity. Why don’t we prohibit real estate activity then?“, he asked himself.

And he stressed that “It is not by prohibiting economic activities that we fight against drug trafficking and high amount of money.”