RUSSIANS MAY BE DISCOURAGED BY PROPOSED COSTA RICA GAMBLING REFORM

25 April 2008

Tighter controls and lower access times may deter new operators


Last week's revelations that the government of Costa Rica plans stiffer casino resort requirements and tighter land gambling controls could inhibit some would-be operators from setting up in the republic, and this may well be the intention following comments by the country's Vice-President, Laura Chinchilla.

Commenting on rumours that the Russian gambling group Storm International BV may be considering Costa Rica as a base to escape stringent Russian controls (see previous InfoPowa report) Chinchilla told the Spanish language daily Al Día, that Storm cannot be stopped under current regulations but that revised gambling legislation planned for implementation by July 2008 could discourage certain new operators.

It is believed that the legislation, which will have a six month window for the implementation of the new requirements, will include rules that any new gambling establishments will have to match 3 star resort with 60 rooms standards and offer complete services. The casino floor space must not accommodate any more than 15 percent of the resort's total floor space and must not be accessible directly from the street.

Existing hotels with casinos, and stand-alone casinos, must regulate their hours to 8 hours a day from 6pm until 2am - a radical reduction from the current 24 hour operations many venues now offer. The issue of free alcohol is also to stop, and more stringent restrictions on access for minors introduced.

Storm’s move to the Central American nation follows the passage of Russian legislation prohibiting the operation of casinos in major urban areas such as Moscow. It courted controversy when it announced a possible move to Costa Rica but declined to identify its Costa Rican partners.

Chinchilla did not mince her words in decribing government intentions, commenting that the type of business proposed by the Russians is not welcome in Costa Rica, and that current casinos operate only because of a vacuum in current laws. She stressed that Costa Ricans do not want to see their country overrun by casinos.

She concluded by saying that the Government would do everything in its power to avoid sending a ‘come to Costa Rica because there is no regulation’ message.

Online Casino News courtesy of InfoPowa