Sports betting is legal in El Salvador under newly established regulatory framework legislation. In December 2021, El Salvador's Ministry of Finance presented a new law to the Legislative Assembly, which was passed on December 31, 2021, giving the National Lottery (Lotería Nacional de Beneficencia de El Salvador, LNB) the authority to both oversee and operate sports betting and online casino games nationwide (1). Under this law, the LNB now serves as the main regulatory body for all forms of gambling, including lotteries, online gaming, and sports betting, with comprehensive powers to regulate, monitor, supervise, organize and run these gaming activities.
The new legislation allows the LNB to authorize third parties to operate the newly authorized games through various legal instruments including permits, licenses, agreements, contracts, concessions, or public-private partnerships (PPPs) with validity periods of up to ten years (2). The regulatory framework represents a significant modernization of El Salvador's gambling laws, replacing outdated legislation that had been in effect since 1960. The LNB has the authority to grant and veto licenses, with additional revenue from sports betting and online gaming activities designated for health and social welfare programs throughout the country.
"The legislation would provide the LNB with the ability to regulate, monitor, supervise, organise and run the new games via a third party, in addition to granting and vetoing licenses which would be valid for a ten year period."
Licensed operators must comply with strict regulatory requirements including registration with the LNB within specified timeframes and obtaining proper authorization before commencing operations. The law establishes that gaming establishments lacking permission and licensing from the LNB within a six-month period must close immediately (2). The legislation also includes provisions requiring existing gaming operators to notify the LNB within the first 90 days of the law's implementation, ensuring comprehensive oversight of the gambling sector. This regulatory framework positions El Salvador alongside other advanced Latin American countries in lottery and gaming exploitation, with the LNB expecting significant revenue increases that could reach levels comparable to Costa Rica, Argentina, Uruguay, and Brazil.
Source:
https://www.asamblea.gob.sv/node/11856
https://g3newswire.com/el-salvador-ministry-of-finance-submits-online-gambling-bill/
Last updated: 24-07-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
