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Ecuador: Guayaquil authorities shut down gaming venue operating illegally inside a hotel

Municipal officials in Guayaquil closed Casino Club del Sol after determining the venue lacked required operating licenses, reviving debate over nonprofit-run gaming activities in Ecuador’s post-ban landscape.

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Ecuador: Guayaquil authorities shut down gaming venue operating illegally inside a hotel
Key Points
Guayaquil authorities closed Casino Club del Sol for operating without the required municipal and LAFE permits
The case underscores legal uncertainty surrounding nonprofit gaming operations in Ecuador since the 2011 casino ban

Municipal authorities in Guayaquil, Ecuador, shut down Casino Club del Sol following an enforcement operation that found the venue operating without the required permits inside a hotel in the northern part of the city.

The closure was carried out by the city’s Directorate of Justice and Oversight, which determined that the establishment did not hold the annual operating permit known as LAFE nor the corresponding municipal authorizations. According to local officials, the action formed part of broader efforts to enforce compliance with municipal regulations.

Casino Club del Sol is managed by the Fundación Ecuatoriana de Fibrosis Quística (Ecuadorian Cystic Fibrosis Foundation), a nonprofit organization. The foundation has described the venue as a “gaming center” rather than a casino, stating that revenues are used to fund medical programs for patients with cystic fibrosis.

The case highlights the ongoing legal ambiguity surrounding nonprofit-run gaming venues in Ecuador. Following the 2011 national referendum that banned casino operations, the country has not reintroduced a regulated land-based casino framework. 

Some charitable organizations have attempted to operate gaming activities under alternative legal interpretations, arguing that their social mission distinguishes them from commercial casinos.

Municipal authorities did not accept that distinction in this case and proceeded with the shutdown regardless of the operator’s nonprofit status.

No public statement from the foundation addressing the closure had been released at the time of reporting. It remains unclear whether the organization will seek to regularize its permits or challenge the decision through legal channels.

Good to know

The 2011 national referendum was a popular vote called by then-President Rafael Correa casinos and gambling establishments were banned, leading to the nationwide closure of legal gaming venues later that year

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