(AsiaGameHub) – The Legislative Assembly of Costa Rica has acknowledged significant deficiencies and lack of clarity in the regulation of gambling, noting its failure to safeguard citizens and state interests from illicit gambling activities.
Discussions have recommenced in the Legislative Assembly in San José as the government confronts new estimates revealing that illegal operators account for 53% of Costa Rica’s lottery and betting sector.
This estimate was presented to the new administration of President Laura Fernández Delgado, who assumed office on May 8th. President Delgado, elected on a platform committed to combating crime, was informed that the Costa Rican economy loses approximately $300 million annually to illegal gambling operators who exploit vague laws and limited supervision of online gambling activities.
Unlike most regulated markets, Costa Rica operates without a specific online gambling licensing framework or a centralized gambling authority. Historically, international online gambling operators have been permitted to establish corporate entities under domestic commercial laws, provided they do not target Costa Rican consumers or infringe upon the monopoly rights of the state-owned Junta de Protección Social (JPS).
However, policymakers are increasingly arguing that this framework has not evolved alongside the expansion of digital gambling, thereby exposing governance weaknesses that organized illegal operators continue to exploit.
Against this backdrop, lawmakers have moved to revive gambling reform under legislative file 25.600, “Strengthening and Modernisation of the Social Protection Board (JPS)”, positioning the proposal as both an institutional overhaul and a consumer protection measure.
Presenting the initiative, Vice President of the Legislative Assembly, Esmeralda Britton framed the reforms as a necessary intervention to protect public resources.
“Today we take a crucial step to protect Costa Rica’s social resources,” Britton stated.
“We cannot allow organized crime and illegal platforms to continue taking advantage of a legal vacuum while thousands of people depend on these funds to receive care and opportunities.”
Government Aims for Enhanced Oversight Capabilities
Rather than focusing solely on enforcement powers, policymakers are striving to rebuild Costa Rica’s broader governance capacity.
The proposal introduces technology-led supervisory systems specifically designed for digital gambling environments, including:
- Systems for real-time monitoring of gambling activities
- Mandatory software audits to enhance operational supervision
- Frameworks for algorithm certification to mitigate manipulation risks
- Increased transparency controls throughout gambling operations
- Strengthened institutional oversight of digital gambling ecosystems
Authorities also intend to reinforce coordination between gambling supervision and Costa Rica’s wider financial intelligence infrastructure.
The proposal calls for more extensive collaboration between the JPS and crucial state institutions:
- Financial Intelligence Unit (UIF) — to bolster anti-money laundering surveillance
- Costa Rican Drug Institute (ICD) — to enhance criminal intelligence cooperation
- National Council for Financial System Supervision (CONASSIF) — to broaden oversight of financial activities linked to gambling
Britton contended that regulatory modernization and consumer protections must increasingly function in tandem.
“This legislation brings Costa Rica into the digital era,” she remarked.
“Regulating through technology also implies safeguarding individuals, particularly minors and vulnerable groups. We aim for serious, modern, and transparent regulation.”
JPS Cautions That Governance Has Not Kept Up
The current proposal also reintroduces goals from Bill 25.057, a previous gambling reform effort put forward in late 2025, which lawmakers ultimately rejected in early 2026.
This rejection caused apprehension within the JPS, which has consistently maintained that Costa Rica’s regulatory framework has struggled to adapt to technological advancements.
In an earlier statement to SBC Noticias, Rosario Masís Pérez, Coordinator of Communications and Public Relations at the JPS, cautioned that a lack of regulatory progress perpetuates inherent structural weaknesses.
“The absence of updated regulations maintains a market where illegal platforms and networks operate without paying taxes, without adhering to control standards, without safeguarding minors, and without contributing funds to social initiatives,” Pérez informed SBC Noticias.
Pérez further cautioned that inadequate supervision generates broader governance risks that extend beyond merely overseeing gambling.
“These systems create economic flows that criminal organizations can exploit.”
She also highlighted digital transformation as a pivotal regulatory challenge for Costa Rica.
“The market has shifted towards online platforms and digital operations. This heightens the risk of illegal network expansion, identity theft, and the diversion of resources beyond institutional oversight.”
The focus now shifts to President Laura Fernández Delgado’s administration to see if Costa Rica can at last implement significant reforms to a gambling framework that has long been criticized for its disjointed nature and lack of transparent oversight.
Although legislators have resumed discussions, no official timeline has been set for implementing substantial changes to supervisory controls, institutional governance, or regulatory enforcement capabilities.
Costa Rica continues to be the sole Central American country without a dedicated gambling authority—a situation it can no longer afford to maintain.
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