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Costa Rica stalls reform as lawmakers reject bill to curb illegal gambling

Bill aimed at expanding the powers of Costa Rica’s social lottery authority and tightening controls on illegal gambling was rejected by a legislative assembly.

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Key Points
The bill was rejected in committee by a 5-3 vote and moves forward with a negative majority report
The proposal sought to strengthen the role of the Social Protection Board (JPS) and penalize illegal lottery and betting activity

The Security and Narcotrafficking Commission of Costa Rica’s Legislative Assembly has rejected a bill designed to strengthen oversight of lotteries and gambling while tackling illegal operations across the country.

The bill proposed expanding the regulatory powers of the Social Protection Board (JPS) and introducing clearer rules for lotteries, betting and games of chance, was voted down in committee by 5 votes to 3. 

As a result, the proposal will now move to the legislative plenary with a negative majority opinion, where lawmakers will decide whether to continue debating the text or shelve it entirely.

Lawmakers supporting the bill argued that the initiative is necessary to modernize Costa Rica’s gambling framework and address the growth of unlicensed lottery sales, illegal betting platforms and informal networks operating outside state control. 

Those voting in favor said the current system allows illegal operators to avoid taxation, bypass consumer safeguards and divert funds away from social programs financed by the JPS.

Opponents of the bill, however, voted against advancing the proposal. With the negative report, the plenary will need to actively overturn the recommendation if the legislation is to proceed.

Had it been approved, the bill would have reinforced the JPS’s exclusive authority over lotteries and gambling activities. 

This would have strengthened the exclusive powers of the Social Protection board, regulate the sale of lotteries, games of chance and sports betting, established updated licensing mechanisms and introduced criminal penalties for illegal operators. 

Also, the bill aimed to protect minors from gambling while promoting responsible gambling at the same time. It would also have ensured that any revenue generated from activities were used for social initiatives, rather than being used by criminal groups.

Good to know

Deputies Gilberth Jiménez, Pilar Cisneros and Horacio Alvarado voted in favor of the project

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