Costa Rica Set To Tax Gambling

Costa Rica's finance ministry will submit a bill within the next two weeks proposing a two percent tax on gambling, the country's English-language Tico Times reported.

According to the report, the ministry estimates the tax - which would be imposed on income earned in the gambling, gaming and betting industry, would generate up to $85 million for the government.

Those figures were calculated by money earned by casinos and the online betting industry. There are 46 casinos in Costa Rica and 300 gambling-related businesses, including call centers, the report said.

Although the tax would provide a boost for the state during these tough times, officials in the gaming industry have expressed concern about a reduction in revenues, following an already significant drop in 2009.

Costa Rican Association of Casinos vice president Jorge Hidalgo was quoted by the Tico Times as saying the gaming industry was among the hardest hit by the global financial crisis.

"Activity has fallen about 35 percent, and in addition to that we have fewer work hours and have had to let go about 500 employees," the newspaper quoted him as saying.

The bill in expected to be put to the Legislative Assembly on August 3.