Bill Would Tax
Costa Rica Based Online Gambling Sites
By Christopher Costigan, Gambling911.com
Every few years the Costa Rican government
comes up with a novel plan to either tax or
license online gambling firms operating in
that Central American nation. Each time, the
attempt has failed. In two weeks Costa Rica
will try once more.
The nation is home to more online gambling
companies than any other in the world, most
of which cater to the North American sports
bettor, casino and poker player.
The Costa Rica Finance Ministry will send a
bill to the Legislative Assembly proposing a
2 percent tax on income earned by the
gambling industry. The government believes
it can generate $85 million as a result.
The problem: When Costa Rica began charging
a licensing fee some years back, only a
handful of the most reputable Internet
gambling firms paid. Others did not. One
that did - Legendz Sports - ended up leaving
the country.
Then there was previous tax proposals that
would have punished the bigger more
successful wagering firms by taxing based on
number of employee stations.
Adam Williams of the Tico Times reports
there are officially 46 online gambling
businesses operating in Costa Rica.
Unofficially there are probably a few
hundred more however. Therein lies the
problem.
Should the bill pass, a regulatory body will
be put in place to ensure that gambling
locations and affiliates are licensed and
honor the new tax. But just like in Vegas,
gambling in Costa Rica's land-based
establishments and online has seen a drastic
drop in revenue over the past year with the
current global economic crisis.
Jorge Hidalgo, vice president of the Costa
Rican Association of Casinos, said the
industry is among the hardest hit by the
recession. "Activity has fallen about 35
percent, and in addition to that we have
fewer work hours and have had to let go
about 500 employees," he said.
The bill is anticipated to reach the
Legislative Assembly on Aug. 3. |
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