Key Moments:
- Lawmakers have faced renewed calls to advance Bill 25.057 following concerns over expanding illegal gambling networks.
- The Social Protection Board (JPS) stated that current laws have allowed unregulated gambling and illicit markets to flourish.
- Bill 25.057 seeks to establish mandatory licensing and regulate digital gambling platforms for the first time.
Regulators Say Outdated Laws Fuel Illicit Gambling
Costa Rica’s legislators are being urged to expedite their review of Bill 25.057 after warnings from regulators that outdated statutes have facilitated the rise of illegal gambling. The Social Protection Board (JPS) has pressed lawmakers to give top priority to this proposal, noting that the existing system has changed little in over fifty years. According to the JPS, this legal stagnation has enabled the proliferation of illegal lotteries, unauthorized sports betting, and online gambling, undermining the official gambling system governed by Law 8718.
Informal Gambling Market Grows Amid Regulatory Gaps
Regulators have highlighted that the lack of comprehensive rules has allowed unregulated and illicit gambling to expand. The JPS described the situation as a “regulatory vacuum,” which it says has fostered an informal market that operates without proper oversight. This gap, according to the JPS, has enabled clandestine gambling activities and unauthorized online wagering, diverting funds from official channels that support social and health initiatives. The institution warned that criminal organizations are exploiting these vulnerabilities, directly threatening the government-controlled system overseen by JPS.
Bill 25.057 Targets Digital Markets and Introduces New Controls
Bill 25.057 proposes far-reaching changes intended to address the emergence of digital gambling platforms and improve regulatory oversight. The bill’s two core provisions are: expanding existing regulations to cover digital platforms, mobile applications, and electronic systems; and requiring all entities to obtain formal operating licenses. These steps are designed to bolster supervision and enforcement, addressing areas that have previously allowed for unregulated operators and criminal activities. According to JPS, these aspects of the reform are central to efforts to modernize the country’s oversight of gambling and were first submitted to the Legislative Assembly in June with support from more than ten lawmakers.
Modernization Aims to Safeguard Public Resources
The JPS restated its October testimony before the legislative committee, asserting that updating the laws is necessary to prevent money laundering and other illicit financial activities tied to unregulated gambling. The agency contended that the current legal framework has been outpaced by evolving technologies and the changing gambling market, resulting in a loss of revenue for social programs funded through authorized gambling.
Legislative Process and Outlook
Bill 25.057 remains under discussion in the Permanent Commission on Security and Drug Trafficking. Lawmakers are considering possible amendments as the proposal moves closer to a plenary session vote. Should the bill pass, it would mark the most substantial revision to Costa Rica’s gambling regulations in decades, impacting the oversight of lotteries, sports betting, and online gambling nationwide.
| Bill Number | Main Provisions | Current Status |
|---|---|---|
| 25.057 |
| Under review in the Permanent Commission on Security and Drug Trafficking |
- Author
Daniel Williams
