Costa Rica Fears Iran's Interest in Region: Bookies Watch Closely

Iran's interest in Latin America is getting a little too close to home, and we are not necessarily talking about the United States.  The peaceful military-free Central American nation of Costa Rica finds itself surrounded by leftist sympathizers of Iran's President, Mahmoud Ahmadinejad.  Costa Rica has the largest concentration of online gambling operators than any other nation. 

Unlike the revolutions that tore apart much of Central America during the 1980's, sparing Costa Rica, Iran's influence is being felt in all directions. 

Costa Rica and Panama, also home to a scattering of online gambling businesses, are being squeezed by countries that have gradually become accommodating to Iran and its leader.

Venezuela, Bolivia, Cuba, Nicaragua and potentially Ecuador (which has been at odds with neighboring Columbia in recent weeks) appear to be solidifying ties with Ahmadinejad. 

At first glance, Iran seems to have little in common with Latin America. Trade and economic relations are rare, and the two regions have different cultural and religious traditions, a report in Friday's AM Costa Rica suggests.

But Iran's President Mahmoud Ahmadinejad has found common ground with leftist leaders critical of the United States and its policy goals around the world.

To help build alliances, Iran has signed a series of economic deals with Bolivia, Cuba, Nicaragua and Venezuela. This week, Bolivia and Iran agreed on joint projects worth $1 billion, including the installation of three Iranian-backed television channels in Bolivia.

Patrick Clawson, deputy director for research at the Washington Institute for Near East Policy, says the agreements are driven by Iran's political interests, and not economic ones.

"That is why we see all these economic cooperation deals signed, which make no economic sense whatsoever," he said. "But both sides deeply believe in them, and both sides deeply believe in the spread of world revolution."

The report has many an online bookmaker on edge, fearing that revolution could eventually spread onto Costa Rican soil.

Many know all too well the consequences of "extreme government changes".

Before moving to Costa Rica, Sportsbook.com had previously shared a quiet headquarters with a handful of other enterprising online sports betting operations including the famed - and some might say infamous - Margarita International and Skybook.   Nine.com, now owned and operated by VIP Sports, also resided on the once peaceful island that legendary Jimmy Buffet sang about.

But Margarita Island is part of Venezuela.  When Hugo Chavez took over in 1998, it took some time for operators to truly understand the full magnitude of his chokehold on the country.  For the most part, Margarita Island had been insulated from much of the poverty and crime that had engulfed the mainland.  That was about to all change.

"The tourists stopped coming," a representative for Sportsbook.com first told us when they were in the process of moving earlier this decade.  "There was no more money being pumped into the island and the living conditions were deteriorating."

Sportsbook.com fled the island with its computers and a handful of the firm's more vital staff.

University of Miami Professor Jaime Suchlicki said Iran and its allies are seeking to nurture other like-minded politicians across Latin America.   He says recent Iranian support for candidates in Latin American elections has raised concern about the impact on democracy.

"They are taking advantage of democracy in Latin America," he said. "They support candidates and friends at all levels and try to bring them to power. So the main challenge in Latin America is how to deal with growing Iranian influence within a democratic framework."

----

Christopher Costigan, Gambling911.com Publisher CCostigan@CostiganMedia.com

Originally published March 21, 2008 11:36 am EST