Ecuador’s LigaPro Opposes Law Banning Sports Gambling Ads
LISTEN TO THIS ARTICLE:Stakeholders in LigaPro, Ecuador’s top football league, have publicly stated their opposition to the Organic Law on Communications introduced by the country's President Guillermo Lasso.
This new law has recently come into effect and has been deliberated by the government in Ecuador since its proposal in November 2022. Within the law is Article 56, which specifically includes the prohibition of sports-related gambling adverts.
The intended purpose of the Organic Law is to overturn the Gag Law of the previous President, which placed strict limits on the media in Ecuador and essentially led to state control of media outlets in the country.
Related: Broadcasters Raise Concerns over Proposed Gambling Advertising Ban
What You Need to Know about Article 56
Article 56 of the new law effectively puts a ban on all advertising on football and includes the line: “Advertising is prohibited, as well as all advertising or propaganda for all betting systems or sports predictions.”
It is estimated there are 33 betting operators in Ecuador, of which 27 are based outside of the country and are unlicensed.
It is thought President Lasso may have targeted the football industry because he believes the government should receive far more tax revenue from the gaming operators than the $480,000 that was taken in 2022.
Leading members of the LigaPro have raised issues over the new law, including Esteban Paz, Director of Liga Deportiva Universitaria de Quito. He says revenue from advertising is a primary source of income in LigaPro and is critical of the government's response when the football clubs have tried to enter a dialogue with lawmakers.
Related: India Cracks Down on Online Gambling Ads Ahead of Major Cricket Events
Negative Effect on Club Revenues
Clubs in LigaPro have pointed out that this ban on advertising has the potential to have a big impact on the revenues of the clubs and that the government of Ecuador has not considered it when drafting this law.
This law could also have a knock-on effect on football sponsorship in the LigaPro, including the league's title sponsorship with Bet593.
We don’t seek handouts. We aspire to thrive, nurture sportsmanship in our youth, and elevate our nation’s spirits.
Stakeholders in the LigaPro have indicated they are prepared to lay down a legal challenge to the new law because they believe claim it is unconstitutional.
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