Costa Rica’s gambling debate has returned to a familiar weak point: the country still lacks a dedicated online gambling regulator. The reform proposal says illegal operators control around 53% of Costa Rica’s lottery and betting market. This costs the country around ₡297 billion a year, according to the bill, with those funds otherwise linked to social and health programs.
This is not just an economic question but also a political one. The Junta de Proteccion Social, or JPS, is responsible for the state lottery, and it funds a number of social programs. In the bill, illegal betting is seen as a threat to the entire system.
JPS Could Gain a Bigger Role
Under the bill, filed as legislative file 25.600, the reformed gambling structure would strengthen the role of the JPS. The draft proposes maintaining JPS’s position as a lottery organizer and operator. At the same time, JPS would be responsible for supervising games in Costa Rica.
This would be a major change compared to the existing approach. As of now, some offshore gambling firms can operate under general commercial rules as long as they do not target local users.
Technology Moves Into the Reform Plan
The proposal calls for real-time monitoring of gambling activity, software audits, and certification of algorithms in games and services. These measures aim to limit opportunities for manipulation and increase government transparency over online operations.
The proposal also relates gambling oversight activities to financial crime controls. The JPS would collaborate with the Financial Intelligence Unit, the Costa Rican Drug Institute, and CONASSIF. This collaboration would help monitor any financial transactions associated with gambling activities.
The bill also points to geoblocking and technical access controls for unauthorized platforms, in coordination with telecoms and cybersecurity authorities.
Criminal Penalties Add a Harder Edge
In addition to the abovementioned measures, the proposal also has a section dedicated to criminal law. An offence would be created against anyone organizing, managing, promoting, financing, or operating illegal gambling for economic benefit. The proposed penalty would range from two to six years in prison.
The new proposal follows the failure of an earlier reform attempt. Bill 25.057 was progressing at the end of 2025, only to be denied in early 2026. File 25.600 becomes the second modernization effort for the legislative period.
Bottom Line
Costa Rica’s challenge is no longer only about drafting another gambling bill. The country has to decide whether the JPS can become a real digital regulator, with the tools and political backing to act. If the reform stalls again, illegal operators will keep working inside a system built before online betting became the main enforcement problem.
