Costa Rican Finance Minister Guillermo Zuñiga has introduced a bill into the legislative assembly, that if approved, would tax all online and offline gabling operators based in Costa Rica 2% on all revenues generated. The new law was received by the assembly on August 3rd and would have been put into approval earlier this week. There have been no official results posted in “La Gaceta” the official government news paper, which is responsible for making all laws official in Costa Rica, but many believe this is a turn in the wrong direction for trying to get a piece of the online betting industry.

For over 10 years the online gaming industry has fueled the economy much more than tourism ever has. It employs over 10k people and has attracted much more than just the online operators. Because the industry has created a new economy class with expendable income, many of the big retail and food chains have found a niche clientele. The proposed 2% tax would hinder that progress due to the appeal of neighboring country, Panama. There are many operators considering the move if the law is approved. "They (The Costa Rican Government) needs to understand our business and the consequences before passing such a law," said Mickey Richardson, CEO of BetCRIS.com one of the biggest and oldest sports books in the country. He claims they have already considered the option of Panama, which in recent years has developed more into an offshore Miami, a big difference from its surrounding third world countries.

 

Source: insidecostarica.com