Costa Rica Introduces New Gambling Reform Bill

Costa Rica has introduced a new bill aimed at modernizing the country’s gambling regulations and strengthening measures against illegal gaming operations.

The proposal, titled “Strengthening and Modernization of the Social Protection Board (JPS)” and registered under file number 25.600, was presented by Legislative Assembly Vice President Esmeralda Britton.

According to the proposal, illegal gambling activity currently represents around 53% of the country’s gaming and lottery market, resulting in estimated losses of nearly US$300 million that could otherwise support social and healthcare programs.

The bill seeks to update Costa Rica’s gambling framework while giving authorities additional powers to monitor and combat illegal online betting activity.

Continued push for regulatory reform

The latest proposal forms part of Costa Rica’s broader effort to modernize its gaming laws and improve oversight of digital gambling platforms.

Toward the end of 2025, Costa Rica’s Security and Narcotics Commission approved Bill No. 25.057, which was developed with technical support from the Junta de Protección Social (JPS).

That earlier proposal included plans for licensing regulated operators, strengthening state oversight and covering digital and mobile gambling activities. However, the initiative was later rejected by the commission in early 2026.

The rejection raised concerns about the country’s ability to address the expansion of illegal gambling structures and the growing online betting market.

Authorities highlight risks linked to illegal gaming

Rosario Masís Pérez, coordinator of communication and public relations at JPS, previously stated that rejecting the earlier proposal removed an important tool designed to protect public resources and address illegal gambling networks operating outside state control.

With the introduction of Bill No. 25.600, many of those concerns have returned to the legislative agenda.

Esmeralda Britton said the new proposal is intended to protect resources linked to Costa Rica’s social programs while addressing the risks posed by unregulated gambling operations.

“We cannot allow organized crime and illegal platforms to exploit the void left by the law” Britton said.

She added that the legislation aims to modernize the country’s regulatory framework while improving protections for minors and vulnerable groups.

Technology and financial monitoring measures included

A key part of the proposal focuses on introducing technological oversight tools to improve supervision of gambling activity.

The bill includes plans for real-time monitoring systems, software audits and algorithms intended to detect manipulation and improve regulatory controls.

It also seeks to strengthen anti-money laundering measures by increasing cooperation between the JPS and agencies including the UIF, ICD and CONASSIF.

According to Rosario Masís Pérez, the absence of updated regulations allows illegal gambling structures to continue operating without contributing taxes or complying with consumer protection and responsible gambling standards.

She also warned that unregulated gambling operations may generate financial flows that could be exploited by organized criminal groups.