Costa Rica Pushes New Bill to Modernize the JPS and Combat Illegal Online Gambling

A new bill is set to be passed in Costa Rica and seeks to provide an updated approach towards regulating the gambling market in the country, focusing on tackling illegal gaming structures.

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The “Strengthening and Modernization of the Social Protection Board (JPS)” has been presented by the vice president of the Legislative Assembly of Costa Rica, Esmeralda Britton, under the number 25.600. According to the bill, the illegal market accounts for approximately 53% of the gambling and lottery betting market, with an estimated loss of nearly USD 300 million that could help the country finance social and health programs.

The bill seeks to bring modernization to the current gambling regulation and offer the authorities additional tools to control and supervise the illegal activities in the online betting market.

Costa Rica Tries to Modernize Its Gaming Regulations

The current initiative comes as part of a broader effort made by the Latin American country to bring an update to its gambling and online betting regulations.

Near the end of 2025, the Security and Narcotics Commission of Costa Rica approved Bill No. 25.057, which was prepared with the technical assistance of the Junta de Protección Social (JPS).

The proposed legislation sought to strengthen the state control mechanisms and update Costa Rica’s gambling laws. The bill covered digital gambling and mobile platforms, including the introduction of a licensing framework for regulated operators, among others.

However, at the beginning of 2026, the commission voted and rejected the proposal, raising concerns about the challenges Costa Rica has to face when addressing the growth of the online gambling industry and illegal gaming structures.

Officials Warn About Dangers of Illegal Gambling Structures

Previously, the coordinator of communication and public relations of the JPS, Rosario Masís Pérez, stated for SBC Noticias that the rejection of the former bill has created concern as it was “a concrete tool to protect social-purpose resources, strengthen legality, and confront a market in which there are illegal structures that do not contribute to the country and pose social risks.”

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With the presentation of the new legislative file No. 25.600, several of the same concerns raised before have returned to the political agenda.

As Britton explained, “Today we are taking a necessary step to protect the resources of Costa Rica’s social purpose. We cannot allow organized crime and illegal platforms to exploit the void left by the law, while thousands of people are waiting for their support and opportunities.”

Moreover, she added, “This law will modernize Costa Rica. Regulating with technology means to also protect people, especially minors and vulnerable populations. We need serious, modern, and transparent regulation.”

Technology and Financial Supervision at the Center of Attention

The introduction of new technological tools to regulate the activity and ensure its correct compliance is one of the most significant aspects of the proposal. The bill proposes the implementation of real-time surveillance mechanisms, algorithms to prevent possible manipulations, and software audits to enhance supervisory capabilities.

Furthermore, the project seeks to reinforce the anti-money laundering measures by establishing closer ties between the JPS and other agencies such as the UIF, the ICD, and CONASSIF.

According to Rosario Masis Perez, “the lack of regulatory updates leaves unchanged a market where illegal platforms and structures work, which neither contributes nor pays taxes. Nor are they subject to control standards, minors’ protection and, therefore, they are contributing resources for social use.”

She further emphasized that “these illegal structures generate economic flows that can be exploited by organized crime.”

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Source: SBC Noticias