Ecuadorian Charity Board Alleges Tax Evasion, Illegal Operations by Sports Betting Firm ecuabet
QUITO, Ecuador – Ecuador’s Charity Board has filed a formal complaint against sports betting company Ecuabet, alleging tax evasion through irregular donations to affiliated foundations adn the offering of prohibited online casino games.The complaint, stemming from a review of Ecuabet’s financial and operational structure, raises concerns about the company’s compliance with Ecuadorian law and its declared non-profit status.
The Board’s investigation revealed Ecuabet was initially domiciled and authorized by the island of Anjouan, in southern Africa, off the coast of Tanzania, but its gaming license-wich expired in May 2025-is currently not listed as qualified by the Anjouan gaming control authority.
Further scrutiny uncovered a network of 42 individuals and entities linked to Ecuabet, including three foundations – Prosperar, Prosperar Salud, and Culturarte – seven companies, and over 32 related people, all represented by the same legal counsel. The Board highlighted a important increase in income for the Prosperar Salud foundation,jumping from USD 34 million in 2022 to USD 95 million in 2024,suggesting a potential shift in operational tactics by sports forecasting companies to operate through foundations beginning in 2023.
The complaint references a prior 2022 accusation against Ecuabet,which revealed an agency contract with the prosperar Foundation and alleged the company offered online casino games prohibited in Ecuador,constituting unfair competition. The Superintendence of Economic Competition investigated that complaint and rejected Ecuabet’s claim that its activities were non-profit due to donations to foundations like Prosperar.
The Charity Board alleges Ecuabet is improperly benefiting from tax exemptions through its relationship with Prosperar, citing contradictions in contractual obligations that prompted the Superintendency to question the legitimacy of the “donations.” Consequently, the Superintendency has forwarded the case file to the Prosecutor’s Office for further investigation.