On November 28, 2025, Costa Rica’s legislators faced increasing urgency to advance Bill 25.057 amid warnings from regulators that current outdated legal frameworks are fostering the growth of illegal gambling networks. The Social Protection Board (JPS) reignited the discussion on gambling regulation, urging lawmakers to prioritize this bill, which aims to modernize a regulatory system that has largely remained static for over 50 years. According to the JPS, the existing regulations have permitted illegal lotteries, sports betting, and online gambling to flourish, creating opportunities for criminal organizations and weakening the official infrastructure established under Law 8718.
The JPS emphasized the necessity of action as informal gambling activities continue to expand unchecked. They pointed out that the absence of updated regulations has led to the proliferation of an unregulated gambling market operating without clear oversight. This lack of a defined regulatory structure has allowed unauthorized lotteries and online betting to thrive, detracting from the legitimate channels intended to support social and public health programs.
This gap in regulation has been exploited by criminal organizations linked to these illegal gambling operations, directly competing with the official system managed under Law 8718 by the JPS. The proposed Bill 25.057 is structured to address these issues by introducing new licensing requirements and enhancing digital oversight.
The bill focuses on two major structural changes. It seeks to extend regulatory jurisdiction to encompass digital platforms, mobile applications, and electronic systems, thus addressing the surge in unauthorized online gambling that existing laws have been unable to control. It also establishes a formalized licensing requirement for all regulated entities, which is aimed at reinforcing supervisory mechanisms and enforcement capabilities.
According to the JPS, these components are designed to fortify an updated regulatory model to close the loopholes that have previously facilitated criminal and unregulated gambling activities. The bill, which entered the Legislative Assembly in June with backing from more than ten legislators, aims to reshape the landscape of gambling regulation to curb illicit financial channels.
The JPS reiterated in October that modernizing regulations is critical for safeguarding public resources. Unregulated gambling, they reported, has become a channel for money laundering and other criminal activities, thereby eroding the financial support base for social programs funded by authorized gaming revenues. As market conditions and technology have evolved, the law has lagged behind, a gap that this reform intends to bridge by aligning oversight with contemporary gambling activities.
Currently, Bill 25.057 is undergoing examination by the Permanent Commission on Security and Drug Trafficking. Here, lawmakers have the opportunity to propose amendments before the bill progresses to the plenary session for its first vote. Should it pass, this reform would represent the most significant update to Costa Rica’s gambling laws in decades, fundamentally altering how the nation manages lotteries, sports betting, and online gambling.
However, not all voices are in agreement. Some stakeholders argue that the proposed changes may be too expansive or burdensome, potentially stifling legitimate business operations while trying to curb illegal activities. There are concerns that the new licensing requirements and digital oversight might impose significant operational costs on small businesses or deter new entrants from entering the market.
Despite these concerns, proponents of the bill maintain that the benefits of a robust regulatory framework far outweigh the potential drawbacks. It’s a necessary measure, they argue, to prevent financial loss from social programs and curb the influence of criminal enterprises in the gambling sector. As one observer noted, the choice is between continuing to allow the unregulated growth of illegal activities or taking decisive action to bring order and protection to the industry.
The legislative review of Bill 25.057 thus continues, with the stakes high for all parties involved. The outcome of this reform will not only impact the regulatory landscape of Costa Rica’s gambling industry but will also set a precedent for how emerging markets can effectively balance innovation with regulation. As the bill advances through the legislative process, Costa Rica finds itself at a crossroads, tasked with modernizing its gambling laws to safeguard its economic and social fabrics.
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