Pending Costa Rican Tax Legislation for Online Sportsbooks

[The Judge]

Looks like this is close to becoming a reality.

AM Costa Rica reports from the South American country this week that the Asamblea Legislativa has agreed to a special tax deal for online gambling enterprises in a new tax plan.

Distinct from other businesses that will be taxed on their incomes, sportsbooks operating on Costa Rican soil will pay a flat fee, ranging from 13 million colons ($26,000) to 24 million colons ($48,000), depending on the number of employees.

Between 5,000 to 7,000 Costa Ricans are believed to be employed in sportbook enterprises and many of these have studied English and computer literacy to take up employment with the gambling operations and would be left jobless if these companies went elsewhere, said the legislator proposing the tax plan.

The motion, if finalized with the tax plan, would allow sportsbook companies to open checking accounts in Costa Rica, something they cannot now do. Typically the betting proceeds are sent out of the country.

The proposal would index the payments to inflation and place the collection in the hands of officials where the betting operation is located. Sportsbooks with up to 20 employees would pay the lowest rate. Those with 21 to 60 employees would pay 16 million colons ($32,000). Sportsbooks with 61 employees or more would pay the highest 24 million colon rate.

[THE Sports PROFIT]

I don't know your numbers there Judger, but you have to be happy with the structure wouldn't you, even if in the highest bracket.

[The Judge]

The latest bill is certainly more reasonable than what has been proposed in the past. Previous bills intorduced by the CR legislature have ranged from imposing a $1000 fee for every computer in a sportsbook office to a tax of 2% on every wager accepted regardless of the outcome of the wager.

The pending legislation is something that most shops can live with and will probably mean that there will not be a mass exodus of Costa Rican sportsbook to Panama which is what was planned if the 2% tax proposal had passed.

[RiskyBu$ine$$]

Hey Judge

This thread would make a perfect punchline joke...

But i'll refrain myself

Once again, All the best with your BFC endeavours, You deserve it.

[The Judge]

Originally Posted by RiskyBu$ine$$

This thread would make a perfect punchline joke...

Ya think? ..

Thanks again, Risky.