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Costa Rica 5 percent gambling tax in prospect

5/14/10 - Rumours that the many online gambling operators based in the tax haven of Costa Rica are about to be taxed were given credibility this week by the respected UK publication The Economist.
The lack of real online gambling regulation in Costa Rica, along with the hitherto benevolent taxation system for foreign companies has made the country popular with many online gambling operators and several software providers.
On May 8 the country inaugurated a new President in Laura Chinchilla Miranda (51), who stood for election on an anti-crime and anti-corruption ticket. Now that she is in power, the President is apparently looking for the tax revenues that will enable her to achieve her objectives.
The Economist claims that online gambling is at the top of her list of soft targets, reportedly with a planned 5 percent tax with the goal of raising an extra 1 percent on GDP.
The Costa Rican government presently collects a mere 14.8 percent of GDP in taxes, and its most recent annual deficit was 4 percent of GDP.
President Miranda could have a fight on her hands. Hitting up the online gambling sector for revenue has been less than successful over the years despite several attempts, and she will need the cooperation of the Liberation Movement political party, whose leader Otto Guevara is on record as opposing such a tax and threatening to delay or halt any attempt to impose same.
Costa Rica has been an appealing location from which to conduct e-commerce, especially in the Internet gaming sector. Companies, even when not incorporated in Costa Rica, are permitted to operate websites under an all-encompassing, simple data processing license.
In addition, no tax is paid on foreign-sourced income. About 380 companies operate under such licenses, turning over hundreds of millions of dollars a year, reports The Economist

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Gambling News :

Yggdrasil Gaming Expanding - The Swedish online gambling games developer Yggdrasil Gaming is to establish a new parent company and expand its Stockholm office as it bolsters its presence in Sweden with a raft of new hires.

FanDuel and DraftKings Settle With NY Attorney General - Speculation earlier this week that daily fantasy sports market leaders FanDuel and DraftKings were about to agree a settlement on consumer fraud suits prepared by the New York AG was confirmed Tuesday when a $12 million settlement was announced.

Stan james Now Live With EPOS - The company switched to the Optima server less system across its entire estate in July after previously using Optima EPOS technology. The switch was completed early this (October) month and has already delivered noteworthy savings for the company.

Singapore Online Gambling Ban Begins - Singapore media reports indicated Tuesday that restricted online gambling services offered by the Singapore Pools have started online operations, whilst Singapore Turf Club will commence online betting activity on November 15.

Chinese police action against Crown Resorts Widens - In addition to the 18 Crown employees still held after their arrest last week, it now appears that the police questioned 87 Crown punters and junket organizers, detaining 10 of the latter.

Pennsylvania Online Gambling Updates - Pro-online gambling companies, including the Golden Nugget in New Jersey and Pokerstars, were quick to refute Schippers views based on their operational experience.

WSOPE In Czech Republic - World Series of Poker Europe 2017 has moved to King’s Casino Rozvadov (KCR) in the Czech Republic following a multi-year deal that will see KCR host numerous WSOP-branded events over the next several years.

Medialivecasino in Deal With Microgame - #Medialivecasino live dealer games have already gone live with Microgame joining content from other well-known providers NetEnt and Evolution Gaming.

BtoBet Partners with AfroBet - Following the launch in Kenya, Afrobet said it has high hopes for further expansion into East Africa, Tanzania, Uganda and Congo.

Pissed off Tabcorp shareholders - A significant number of Tabcorp shareholders, led by The Australian Shareholders Association, reportedly objected to proposed hikes in executive pay packages and were unhappy with the company plans for a merger with rival gambling group Tatts.

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