Costa Rica: Casinos to Face Tough New Government Regulations

The government has issued a series of new guidelines designed to curtail the operation of casinos in the country.

Four executive decrees, signed by President Oscar Arias, actively seek to discourage casinos, particularly in hotels, and are the result of 12 months work by a committee made up of representatives from the Ministries of Health, Justice and Tourism.

Under the new guidelines, casinos operating within hotels will only be allowed to stay open for eight hours each day, considerably less than the 24 hours which is allowed under existing legislation.

Further, casinos can only be included in hotels that have a minimum of 60 rooms and three stars, and they can only occupy a maximum of 15 per cent of the hotel’s total area.

The casino must be owned and operated by the same entity which owns the hotel. The commission felt this would avoid the exchange of operating rights and make the hotel responsible for all acts.

“The operation of the casino is allowed only as an additional service, and not as a commercial activity by itself,” the commission said.

The new guidelines were announced by Vice President and Minister of Justice, Laura Chinchilla, the Minister of Health, Marìa Luisa Àvila, and the Minister of Tourism, Carlos Ricardo Benavides.
The regulations replace current legislation which dates back to 1922.

In order to operate a casino, the hotel or owner society must be registered as an employer in the Caja Costarricense de Seguro Social (the State’s social security service), be up to date with taxation payments and be able to prove where funds to run the casino come from.

Casino-owners will no longer be allowed to offer free drinks to gamblers. Minors will not be allowed in casinos, nor people who are affected by drugs or alcohol.

Casinos may have in operation 10 table games and 60 machines for the minimum requirement of 60 rooms, an amount that may increase at a rate of one table for every 10 additional rooms, and one machine for each additional room.

The decree also regulates the types of coin machines that may be used in the casino, which will have to meet certain requirements laid down by the Ministry of Public Security. that must meet certain requirements of the Ministerio de Gobernaciòn y Policìa.

The commission issued a statement on what it called “uncontrolled addiction to games of chance”, calling it a sickness, and thus a public health problem.

“I don’t think it is a sickness,” said Alan Umaña, general manager of Hotel Cocal, in Jacó.

“To elevate this to the rank of disease, would affect adversely the image of people who play for fun and healthily,” Mr Umaña said. “Their image [gamblers] is being affected and elevated to that of drinkers or drug users.”

“We won’t be affected as much, as we don’t operate 24 hours, although it will affect us in the operation of the slot machines, because they are limiting us to eight hours per day.

“We open the slot machine operation from 11am to 7pm and the casino, the playing tables, operate from 7pm to 3am. We won’t be able to operate the slot machines on their own, but solely during the table playing hours.”

Mr Umaña warned there would be job losses at certain casinos, adding the new legislation could lead to a proliferation of clandestine casinos.

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