The Legislative Assembly of Costa Rica has acknowledged major shortcomings and ambiguity in the governance of gambling and its failure to protect citizens and state interests from illegal gambling activity.
Debates in the Legislative Assembly in San José have been reopened as the government confronts new estimates showing illegal operators account for 53% of Costa Rica’s lottery and betting sector.
The estimate was presented to the new administration of President Laura Fernández Delgado, who took office on 8 May. Delgado, elected on a platform focused on tackling crime, was informed that the Costa Rican economy loses approximately $300m annually to illegal gambling operators exploiting vague laws and limited oversight of online gambling activity.
Unlike most regulated markets, Costa Rica operates without a dedicated online gambling licensing regime or a centralised gambling authority. International online gambling operators have historically been permitted to establish corporate entities under domestic commercial laws, provided they do not target Costa Rican consumers or encroach upon the state-owned Junta de Protección Social (JPS)’s monopoly rights.
However, policymakers increasingly argue that the framework has failed to evolve alongside digital gambling expansion, exposing governance weaknesses that organised illegal operators continue to exploit.
Against that 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 necessary step to protect Costa Rica’s social resources,” Britton said.
“We cannot allow organised 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 seeks stronger oversight capabilities
Rather than focusing solely on enforcement powers, policymakers are seeking to rebuild Costa Rica’s broader governance capability.
The proposal introduces technology-led supervisory systems designed specifically for digital gambling environments, including:
- Real-time monitoring systems for gambling activity
- Software auditing requirements to improve operational oversight
- Algorithm certification frameworks to reduce manipulation risks
- Expanded transparency controls across gambling operations
- Greater institutional supervision of digital gambling ecosystems
Authorities also intend to strengthen coordination between gambling oversight and Costa Rica’s wider financial intelligence architecture.
The proposal seeks deeper cooperation between the JPS and key state institutions:
- Financial Intelligence Unit (UIF) — strengthening anti-money laundering surveillance
- Costa Rican Drug Institute (ICD) — reinforcing criminal intelligence cooperation
- National Council for Financial System Supervision (CONASSIF) — expanding oversight of gambling-related financial activity
Britton argued regulatory modernisation and consumer safeguards must increasingly operate together.
“This law adapts Costa Rica to the digital era,” she said.
“Regulating with technology also means protecting people, especially minors and vulnerable populations. We want serious, modern and transparent regulation.”
JPS warns governance has failed to keep pace
The proposal also revives objectives contained within Bill 25.057, an earlier gambling reform initiative advanced during late 2025 before lawmakers rejected the proposal in early 2026.
The decision generated concern within the JPS, which has repeatedly argued that Costa Rica’s governance framework has struggled to evolve alongside technological change.
Speaking previously to SBC Noticias, Rosario Masís Pérez, Coordinator of Communications and Public Relations at the JPS, warned that regulatory stagnation continues to preserve structural weaknesses.
“The lack of regulatory updates keeps intact a market where illegal platforms and networks operate without paying taxes, without complying with control standards, without protecting minors and without contributing resources to social causes,” Pérez told SBC Noticias.
Pérez further warned that weak supervision creates wider governance risks extending beyond gambling oversight.
“These schemes generate economic flows that can be exploited by criminal structures.”
She also identified digital transformation as one of Costa Rica’s defining regulatory challenges.
“The market has evolved toward online platforms and digital dynamics. That increases the risk of illegal network expansion, impersonation and resource capture outside institutional control.”
The spotlight now falls on President Laura Fernández Delgado’s administration to determine whether Costa Rica can finally deliver meaningful reform to a gambling framework long criticised for fragmentation and opaque oversight.
While lawmakers have reopened debate, no formal timetable has been established to implement major changes to supervisory controls, institutional governance or regulatory enforcement powers.
Costa Rica remains the only Central American nation without a dedicated gambling authority – a condition it can no longer tolerate.
