Authorities in Guayaquil have shut down an alleged clandestine establishment where gambling equipment and $26,000 in cash were discovered during an operation in the city's central Bahía district.
The September 18 raid took place on Chiriboga and Chile streets and involved Ecuador's Security Block and National Customs Service (Senae). Authorities said the property was operating as an alleged clandestine hotel and contained rooms used for gambling.
Officials also found merchandise that Guayas Governor José Ignacio Arévalo said lacked documentation establishing its legal origin. A safe was discovered alongside the $26,000, with those responsible for the establishment unable to justify the origin of the money.
The property had previously been closed by authorities. However, officials said it continued operating despite seals having been placed on its doors.
Rooms suspected of being used for sexual services were also identified, while immigration authorities were expected to review the status of foreign nationals found at the premises.
The intervention came three days after authorities closed another clandestine venue in Guayaquil's Urdesa Central district. That establishment had been under investigation for three months following complaints from residents, according to Arévalo.
The raids take place against a restrictive legal framework for land-based gambling in Ecuador. A 2011 referendum prohibited establishments conducting games and betting for profit.
Article 236 of the country's criminal code provides prison sentences of one to three years for operating casinos, gaming halls, betting houses or businesses conducting games of chance.
Regulatory scrutiny has continued in Guayaquil during 2026. In February, municipal authorities closed Casino Club del Sol after an inspection found casino games and sports betting being offered without the required municipal operating license.
A court subsequently ordered the removal of the closure seals, while the municipality maintained that its original administrative action complied with local regulations.
Ecuador maintains a separate framework for sports prediction operators. The country's tax authority applies a 15% single income tax regime to resident and non-resident operators, while regulations also provide for a specific operating license for sports predictions.
In May, Ecuador's Attorney General reaffirmed that games of chance are generally considered an illicit activity under civil law regardless of whether they are organized for profit. The opinion identified limited statutory exceptions, including the Guayaquil Charity Board's lottery and certain authorized raffles.
Ecuador's 2011 referendum prohibited casinos, gaming halls and similar for-profit gambling establishments, with the prohibition subsequently reflected in Article 236 of the criminal code
