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Costa Rica moves to close illegal gambling loopholes with new bill

The Social Protection Board argues current regulation favors illegal operations in the country.

3 min read
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Key Points
New bill by JPS plans to modernize Costa Rica's sector
The board urges lawmakers to prioritize the process, stressing it's necessary for stronger oversight

Costa Rica's Social Protection Board (JPS) issued a public statement stressing the urgency of advancing Bill 25.057, now under review by the Legislative Assembly's Permanent Commission on Security and Narcotrafficking.

According to the institution, the initiative is essential to reorganize the country's gambling sector, disrupt illegal operations and close regulatory loopholes that have allowed unlicensed structures to happen for decades.

JPS highlights that Costa Rica currently faces a significant informal market operating without specific oversight.

This environment has enabled unregulated lotteries, illegal operators and betting activities to expand without authorization, creating what the institution describes as entry points for criminal groups seeking financial channels.

Under the current legal framework, which has remained largely unchanged for more than 50 years, the state lacks the tools to effectively identify, sanction or dismantle these networks.

Bill 25.057 proposes several updates to modernize the system. One of its central measures is the explicit inclusion of digital platforms, mobile applications and electronic systems within the legal framework.

By doing so, authorities would be able to regulate online gambling activities that currently fall outside the scope of existing law.

The bill also introduces the requirement of a formal authorization that operators must obtain to conduct regulated activities.

This title would serve as a control mechanism, providing the state with a clear structure to oversee compliance.

The JPS argues that unauthorised sales of lotteries and gambling products directly threaten legal operators protected under Law 8718, while also undermining the state's capacity to monitor and control sensitive financial flows.

Passing the bill would mark a decisive step toward curbing unlawful gambling activity and ensuring that Costa Rica's legal framework reflects the realities of a digitalized environment.

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