SAN JOSE, Costa Rica — Internet gambling knows no borders, and dozens of online companies have flocked here to make this Central American country a leading offshore bookie haven.
At least 80 Internet gambling companies--most taking bets on sporting events around the world--have set up shop in Costa Rica, lured by lax regulations and a relatively cheap labor force whose workers often speak English in addition to Spanish.
While the growing industry has put up to 5,000 Costa Ricans to work with good wages and benefits, U.S. officials aren't happy about Web bookies in Costa Rica, nor the Net casinos in the Caribbean and elsewhere.
The majority of Web bookies in Costa Rica cater to customers in the United States, although some also focus on the growing Asian market. The largest numbers of bets are on football, followed by professional basketball.
The U.S. Department of Justice notes federal law prohibits the use of the Internet for sports betting by U.S. residents, and there have been attempts in U.S. Congress to ban casino-style games online.
But trying to implement a ban would be difficult. Internet gambling companies are difficult to track, with locations all over the globe. They can crop up any place with phone lines and high-speed Internet or satellite connections.
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 has been working to attract high-tech businesses--it also is home to a growing number of electronics factories--to diversify the economy from its main industries of coffee, bananas and tourism. It has revamped regulations and opened computer schools seeking to become more competitive.
Although it hasn't actively pursued online gambling companies, Costa Rica has made it easy for them to set up shop. Unlike some other countries where Internet gambling is legal, Costa Rica has no licensing fee--or any other laws dealing with the business.
Costa Rican officials are happy because the companies pay well and offer good benefits. Four gambling companies set up shop in 1995, and dozens more followed.
"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. It has 600 employees in Costa Rica.
