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| Costa Rica � The Online Gambling Paradise |
11/16/2000 Costa Rica is the leading offshore gambling haven The Central American country of Costa Rica is much more than a tropical paradise ? it?s a haven for offshore gambling. Over 80 Internet gambling companies have flocked to Costa Rica, lured by lax regulations and a relatively cheap, Spanish-English bilingual labor force. A shortage of workers with both computer and English skills has already arisen. In addition, these companies often pay more than three to five times more than the average Costa Rican worker?s wages. According to Congressman Otto Guevara, the jobs created by the online casinos offset the fact that they pay almost no taxes. To date, the industry has created jobs for over 5000 people. Although the majority of Web bookies in Costa Rica cater to customers in the United States, there is also a focus on the growing Asian market. The largest numbers of bets are placed in the sporting arena, with football leading, followed by professional basketball. Despite the U.S. Department of Justice prohibition on the use of the Internet for sports betting by Americans, and attempts in the U.S. Congress to ban online casino gaming, gambling on the Internet is growing at a rapid pace. Costa Rica is especially attractive because it offers what online gambling companies are looking for: young people with strong computer and English skills, and a country with good infrastructure. The country is striving to develop its high-tech industry and to diversify the economy from its main industries of coffee, bananas and tourism. Although Costa Rica hasn't actively pursued online gambling companies, its lax rules and lack of licensing fees has made it an attractive option. Costa Rican officials are satisfied with the deal because of the positive impact these companies have had on the economy. Four gambling companies set up shop in 1995, and dozens more followed. Eugenio Monge, a representative of Rio International, says there is plenty of room in the online gambling market for all the companies in Costa Rica, though he concedes competition has forced some to offer promotions and prizes that have diminished profits. "The small ones try to survive, while the big ones absorb and consolidate," said Greg Champion, head of NASA Sports International, a sports betting service with 600 employees in Costa Rica. Although the country does not have specific legislation dealing with online gambling, the businesses operate with municipal licenses and under legal names. |
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