Ecuador has secured a major legal victory after an international arbitral tribunal dismissed a $152m claim brought by two former casino operators who hold dual Ecuadorian-Italian nationality.
The tribunal, constituted under the UNCITRAL Arbitration Rules in case CPA 2023-23 and filed under the Ecuador-Italy Bilateral Investment Treaty (BIT), ruled that it lacked jurisdiction to hear the dispute. The jurisdictional award was issued on December 3, 2025, and effectively ended the proceedings with no compensation payable by the Ecuadorian state.
The claimants, a married couple who once operated casinos in Ecuador, alleged violations of fair and equitable treatment, denial of justice, and unlawful expropriation. Their claim included more than $152m in material damages, in addition to moral damages, legal costs, and interest.
In its ruling, the tribunal concluded by majority decision that the Ecuador-Italy BIT does not extend protection to claims made by dual nationals when their Ecuadorian nationality is deemed their dominant and effective nationality.
Ecuador's legal team successfully demonstrated the claimants' substantial personal, economic, and social ties to the country, persuading the tribunal that international investment treaty protections were not applicable.
The panel also identified an abuse of process in the way the claimants attempted to invoke treaty protections through their second nationality. As a result, the case was dismissed at the jurisdictional phase without the tribunal considering the merits of the compensation claim.
Ecuador's casino landscape in 2025
Casinos and physical gaming venues have been prohibited in Ecuador since 2011, following a nationwide referendum that resulted in their formal ban under criminal law. To date, no legal framework exists for licensing land-based casinos or domestically regulated online casinos.
However, the government has begun shifting its approach to online betting. In 2024, Ecuador introduced a tax regime covering online gambling operators, including sports betting platforms, marking a significant policy shift toward formal regulation of digital wagering activity.
In parallel, President Daniel Noboa's administration has proposed re-legalizing land-based casinos under a limited model. The plan would allow casinos exclusively inside five-star hotels, positioning gambling as part of a broader tourism development strategy.
Casinos have been banned in Ecuador since 2011, while online betting is now taxed and the government is considering the return of land-based casinos through a public referendum.
