Casino tax in Costa Rica could generate more than us$ 100 million

The Minister of Economy Jenny Phillips, told representatives of the Permanent Commission of Financial Affairs about the need to regulate casinos, together with the aim to create a tax to the activity in the file 17.55, Law of Regulation of bets, casinos and games of chance.

The head of Economy expressed to the commission that treats the initiative that the project considers a complete regulation to rule out bias in favour of some of the modalities developed in that activity.

He explained that the goal of the project is to regulate the companies to avoid the use of the activity with illegal purposes and to create mechanisms to sanction the infringements of the businessmen.

The resources to be generated by the regulation of the games of chance, casinos and betting activity would be allocated to fund social programs and public safety which guarantees the best effectiveness of coverage.

Jenny Phillips reminded that the country does not count with an updated regulation, except from traditional casinos, which possess a basic control, while in the rest of the sector is almost nonexistent, a situation that presents “positive” and negative aspects.

He remarked that the country does not have any type of control on the activity and it totally passive, but is open to criminal influence, money laundering, terrorism, drug dealing. The contribution to the government is very reduced, which contrasts with the growth of the country, which is not balanced and leans towards to services that do not have a high added value, limitating oportunities of personal development of those who work in this sector.

He added that the lack of regulation causes that the country is subject to critics from international entities that present the country as a place in which there might be illegal companies dedicated to money transfer.

He commented that the countries in which the casino and betting activity is regulated managed to reduce the criminal influence, generate more resources for the state, increment banking deposits in foreign currency and present a more balanced growth.

He explained that the negative aspects that the nations that regulate the activity present are that they had to face more initial costs, especially in the institutional development required for the implementation, as the trainning of personnel and the proper salaries to avoid temptation, as well as the possible migration of marginal operators or of questionable quality.