Costa Rica: legislative commission rejects update to gambling law in effect for half a century

Costa Rica: legislative commission rejects update to gambling law in effect for half a century

The Social Protection Board (JPS) of Costa Rica faces a significant obstacle in its attempt to modernize the regulatory framework governing gambling in the Central American country. The Security and Narcotics Commission of the Legislative Assembly rejected Bill 25.057, an initiative that aimed to strengthen state controls over betting activities and close legal loopholes that have allowed the proliferation of unauthorized operators.

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The rejection occurred through an internal vote after months of analysis of the file, which had received preliminary approval in November 2025. The decision contrasts with the expectations generated when the same commission seemed to initially approve the proposal, as reported by the Costa Rican media outlet Monumental (93.5 FM).

Divided vote in the parliamentary commission in Costa Rica

The voting result reflected a significant division among legislators. Five deputies voted against the bill: Gloria Navas, Priscilla Vindas, Alejandra Larios, and Gilberto Campos voted negatively, while only three supported the initiative: Gilberth Jiménez, Pilar Cisneros, and Horacio Alvarado.

With this negative majority opinion, the file will now advance to the Legislative Plenary, where all deputies will have the opportunity to debate and vote on the future of this regulatory proposal. This instance will determine whether the initiative continues its parliamentary process or if it will ultimately be shelved.

Arguments of the Social Protection Board to promote the reform

When presenting Bill 25.057, the JPS emphasized the urgency of updating a regulatory framework that has been without substantial modifications for over fifty years. According to the institution, the current legislation dates back to the early 1970s and does not account for the challenges presented by the current gambling landscape, especially in the digital environment.

The Board argued that the proposal constitutes a necessary measure to close legal loopholes that currently facilitate the proliferation of unauthorized activities in the sector. The institution maintains that the lack of regulatory updates has allowed unlicensed operators to exploit regulatory gaps to establish betting businesses outside of state control.

Challenges of outdated legislation

Costa Rica’s legal framework for gambling has remained essentially intact for over half a century, a period during which the entertainment and betting industry has undergone radical transformations. The emergence of digital platforms, mobile applications, and new forms of gambling has created an ecosystem completely different from the one that existed when the original legislation was enacted.

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This outdated regulation not only hinders the oversight of legitimate operators but also complicates efforts to combat the illegal offering of betting services. The JPS has pointed out on several occasions that the absence of modern legal tools limits the State’s ability to protect consumers and ensure that gambling activities are conducted under appropriate standards of transparency and social responsibility.

Next steps in the legislative process

The negative opinion of the Security and Narcotics Commission represents a significant, but not necessarily fatal, obstacle for Bill 25.057. The file will reach the Legislative Plenary where deputies will have the opportunity to overturn the commission’s recommendation through a vote.

For the bill to continue its process, it will be necessary for the proponents of the initiative to convince a majority of legislators of the importance of modernizing the gambling regulatory framework. The Social Protection Board will need to reinforce its technical arguments and demonstrate that the benefits of updating the legislation outweigh the concerns that motivated the negative vote in committee.

The debate in the Plenary will represent an opportunity to thoroughly examine the merits of the proposal and hear the perspectives of different interested sectors, including authorized operators, civil society organizations, and gambling regulation experts.

Implications for the Costa Rican betting sector

The final outcome of this legislative process will have significant consequences for the gambling industry in Costa Rica. If the bill is ultimately approved, the country could have more effective tools to regulate a sector that generates significant fiscal resources and employment, but which also requires rigorous oversight to prevent problems associated with compulsive gambling and fraudulent operations.

Conversely, if the initiative is shelved, Costa Rica will continue to operate under legislation that, according to its critics, does not adequately respond to the contemporary realities of the sector. This situation could prolong the difficulties in combating the illegal offering of betting services and limit the State’s ability to maximize the social benefits that a well-regulated gambling industry can generate.

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