Costa Rica: Regulatory setback, bill to modernize gambling law
Despite the push from the Social Protection Board, the Security and Narcotics Commission issued a negative opinion on Bill 25,057. The initiative, which sought to update regulations in force for more than 50 years, now depends on a critical decision in the Plenary.
The path towards modern gambling regulation in Costa Rica has encountered a major obstacle in the Legislative Assembly. After months of debate, the Security and Narcotics Commission has finally rejected Bill 25,057, an initiative that aimed to strengthen state control and close legal loopholes that allow the proliferation of unauthorized gambling in the country.
Although in November 2025 the proposal seemed to be advancing steadily, the beginning of 2026 marks a 180-degree turn. With a vote of five against and three in favor, the Commission has sent the file to the Legislative Plenary with a majority negative opinion, putting the project on the verge of definitive shelving.
A 50-year-old legal framework in the digital era
The Social Protection Board (JPS), the main promoter of the reform, has defended the urgency of this law arguing that the current regulations are more than five decades old. According to the institution, this legal gap facilitates gambling activities operating without supervision, depriving the State of resources and exposing users to security risks.
Political division and uncertain future
The vote reflected a clear division within the Commission:
- In favor (3): Deputies Gilberth Jiménez, Pilar Cisneros, and Horacio Alvarado supported the measure as a necessary tool for updating and transparency.
- Against (5): Deputies Gloria Navas, Priscilla Vindas, Alejandra Larios, and Gilberto Campos led the rejection, which will lead the Plenary to make the final decision on whether the text remains under discussion or is discarded.
For iGaming operators and technology providers in the region, Costa Rica’s situation is paradoxical. The country is a historic "hub" of digital services for the rest of the world, but its internal market remains trapped in analog legislation.
The rejection of this project means that, for the moment, there will be no immediate tightening of controls nor a regulated opening that allows formal competition under the protection of the JPS. For the iGaming executive, this translates into the continuation of a persistent grey market and a lack of legal certainty for long-term local investments.
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