NASA Sports is a giant in Costa Rica, and calls itself the world's largest sportsbook. In local newspaper the Tico Times, NASA managing director David Carruthers is quoted as saying: 'I would welcome regulation, depending on its content. Regulation creates an environment of stability. It makes it easier to plan, and provides more confidence to invest.' In agreement is Sportingbet.com president, Mark Blandford, whose company also operates in Curacao and Alderney in the Channel Islands. He commented: 'Regulation places a minimum standard on the activity to ensure that companies comply with local laws and are good corporate citizens. It also ensures that the companies are adequately funded – or not using their incoming bets as working capital.'

Mr Blandford's Costa Rican operation is poised for expansion in Costa Rica, providing the upcoming regulation does not prove prohibitive. The bill which has been put to Congress obliges sportsbook operators to buy a $150,000 operating license, as well as pay sales and luxury (consumer) taxes and a yearly fee based on the volume of bets they process. As a requirement for obtaining their operating license, the companies will have to finance an Interpol investigation proving that the bets they process are not funded with illegal drug money or through other illicit sources. The companies will also be required to present complete accounting reports to local tax authorities.

National Liberation Party deputy Rafael Arias insists that Costa Rica does not want to completely eliminate the sportsbook industry – and the estimated 3,000 well-paying jobs it provides – it just wants to regulate it to make sure the government collects a share of the estimated billions in profits. He has insisted that Costa Rica will remain competitive alongside other gaming destinations in the Caribbean.

The fear amongst smaller online bookmakers is that the hefty licencing fee will be too much for some to pay. The Tico Times quotes one unnamed owner as saying: 'It would be completely unfair to establish a license of that amount. If I had to pay it, I would definitely move operations to another country, and other companies would too.' Besides the licencing fee, there are other financial commitments, including the rental of office space, monthly payments to the government's Internet monopoly Radiográfica Costarricense (RACSA) for fast connections, and employees' mandatory income-tax payments.

However, Mr Carruthers of NASA believes regulation could give rise to a parallel process of industry unification. He said: 'If an association evolved on the UK model, it would be a very good thing for Costa Rica, because it provides a channel of communication between the industry and the regulators. It helps both to better understand each other.'