Costa Rica: Mobile draws and games of chance suspended

The measures meant that the Costa Rican Institute of Electricity (ICE) cancelled the short activation codes to companies dedicated to the draw business, through which its customers participated in these games of chance. The entity also informed them that they required an authorization of JPS.

Once the license is granted, “it will be performed the authorization (of the codes)”, communicated the companies of the division of services of ICE in a document, of which EF has a copy. Besides, it warns them that “what should be offered are content services, it means that the delivery of information and knowledge must be done, not contests or draws”, the text said.

The content service works sending a text message or activation code, in order to accept the reception of the information, for example, the horoscope or the participation in a contest. The message can have a cost or be free.

By law, JPS has the monopoly of draws, lotteries and raffles in the country, and people that perform it must have its authorization. The law 8712, published February 18th, 2009, establishes the exclusiveness of raffles, both pre-printed and electronic, in JPS, which is authorized to control.

The exception of the norm are raffles or draws with promotional aims, which must not be charged for participating. Also those performed by associations, foundations and entities of social wellfare must be allowed, but should count with the authorization of JPS directors.

Raffles and draws in commercial promotions are legal, but they should not be charged for participating, and prizes must be objects and things, never money in cash.

According to JD-145, last April 21st, JPS directors demanded ICE to deny the authorization of content services (lines 900 and text messages) of companies that want to do pre-printed or electronic raffles, illegal lotteries or commercial promotions with lucrative aims.

According to information of the Internet page of ICE, there are 40 proviers of services for online content. The Institute brings them the platform for them to send and receive contents in exchange for the 40 % of the amount generated, according to Roy Solano, EMS manager, a company that participates in this business.

Paula Valenciano, general manager of Telepromos, a firm that administrates contests and text messages by cell phones, acknowledges that ICE and JPS are getting very strict with draws.

According to Valenciano, two short codes that were not used so far from Telepromos have been desactivated because ICE considered that they did mpt comply with the requirements. Besides, EMS manager, Roy Solano, assured that his company has not been desativated any code and that everything was performed according to the law, but critisized that ICE desconnected the services without the proper process, because it is not the supervisor of the draws.