Legislators consider gaming law changes in Costa Rica

Bill to give JPS powers to operate casinos

On the last day of December 1845 the Junta de Caridad de San Jose, a charitable organisation formed earlier that year, was authorised to establish a monthly public lottery in Costa Rica. The first draw took place on 7 June 1885, nearly forty years later. The name was changed in 1936 to the Junta de Protección Social de San José (JPS) and now another name change is being proposed. Legislators in Costa Rica are considering a bill that would rename the organisation the Junta de Protección Social, but the proposed bill goes further than that.

The lawmakers are being asked to give the JPS the right to operate casinos and video lotteries in a bid to regulate gaming in the country and bring additional revenues to the JPS. Lottery earnings are channelled to social programmes and the bill aims to bring the largely unregulated gaming operations under the same regime. Sponsoring the bill is Ana Elena Chacón who wants to see the poor getting a benefit from casino revenue. "At the present time all there is, is an executive order that regulates hours of operation. Unfortunately there is money laundering going on in casinos and other illegal activities that must be stopped and the JPS will be able to regulate the activities."

The bill has significant support but not from the ruling party. Originally having been in favour of the JPS bill, the government is now backtracking. It insists that powers to issue casino permits and concessions must remain with central government because a body dedicated to helping the poor would not have the necessary gaming skills to manage the sector. The argument may have little merit as the JPS has been in the lottery market for over 120 years but it could take a while before possible changes are made law. It took the legislature from 1997 to 2005 to agree some changes modernizing the 1922 law relating to gaming. (E-12.11.08)

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