The Costa Rican gambling industry turned out in force last week to protest
against in front of the Asemblea Nacional against planned tax increases designed
to address the government's deficit and long-term debt problems.
The Costa Rican authorities have proposed a number of tax changes in addition
to the tax hikes for sportsbooks. These include a 5% increase to the 40% corporate
tax rate, increases in 'sin taxes' on products such as alcohol and cigarettes,
increases in highway tolls, the introduction of a new tax on corporations which
would average around $200 per company, per year, a 50% luxury tax to be imposed
on expensive cars, and a $50 annual tax on mobile telephones.
However, the gambling sector warned last week that the $1,000 per month (now
revised down to $500) tax on computer terminals used to place internet bets,
and $500 monthly charge for casinos per slot machine, are likely to lose the
authorities more revenue than they gain.
The AM Costa Rica news service on Friday quoted sportsbook operators as observing
that if the proposed taxes pass, 'all of Costa Rica will pay for this error
of the government. The [cash] cows will go to Belize, Nicaragua and Panama.'
The local news service went on to observe that: 'In exchange for trying to
get 6.6 billion colons in tax each year, the lawmakers risk losing 175 billion
colons in salary, taxes, and other payments.'
The Costa Rican gambling industry is also under threat from the United States,
which is trying to prevent US citizens from utilising offshore gambling services,
by seeking agreements with credit card providers that they will not authorize
payments to Costa Rican sportsbooks.