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Costa Rica To Investigate Legality Of Internet Gambling

Mike Godfrey, Tax-news.com, New York

17 October 2000

In response to a recent Miami Herald report on Internet gaming in Costa Rica, which was carried in Tax-news.com last week, the Costa Rican government has said that it is to investigate offshore gambling, in particular the legal framework that allows offshore betting companies to work in the country.

The Miami Herald's special report called the Central American country a "Virtual Vegas" where "new technology and an anything-goes governing attitude make Costa Rica 'the Mecca of offshore wagering.'" The report said that Costa Rica was regarded as a very tolerant country in respect of its policy towards Internet gambling.

Now President Miguel Angel Rodríguez has said that he has asked the Revenue Ministry to study the system by which Internet gaming companies work in Costa Rica. He acknowledged that even though there is not a specific legal framework regulating their work, 'this is an issue we should have an answer to, and that why I've asked the Revenue Ministry to investigate the situation.'

The Miami Herald report said that such companies pay only $50 in Costa Rica for their licenses whilst having to pay $100,000 in Antigua in order to work. Rogelio Ramos, minister of Public Security, said he has 'asked our legal department for a study to show if receiving a phone call so that a bet is made in the US is a crime in Costa Rica.'

The Costa Rican government is undoubtedly perturbed by statements from the likes of Tom Somach, who covers the offshore industry for Rolling Good Times Online, a website for gamblers, and who commented: 'Porn may be the top business on the Internet, but gambling is No. 2. And these days, when you talk about the Internet, you're talking about Costa Rica.'

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