El Salvador Lottery Moves to Take Over Casino Licensing
El Salvador's National Charity Lottery wants control of casino licensing. Right now, that power sits with municipal councils. LNB president Javier Milián laid out the plan last week at the IAGR conference in Lima, where South American regulators gathered.
The LNB dates back to 1870, when it started as a state lottery raising money for social projects. A 2021 Organic Law handed it supervision of lotteries, sports betting and online gambling. Physical casinos and gaming halls were left out, still running on municipal permits. Milián doesn't think much of that setup. "There are no licenses for these establishments; instead, municipalities grant operating permits," he said. Those permits, in his view, carry limited legal scope and leave operators short of the guarantees they need.
Under the reform, licensing and supervision would move to the LNB. It's part of a broader government push on legal certainty, and Milián said the president has delegated sector regulation to the institution. Suppliers are in scope too. Machine suppliers and B2B equipment providers would come under the framework, and certifying machines as they enter the country is a priority. "We want to guarantee to players that the machines entering the country have the necessary certifications," he said.
Online is the growth engine. The LNB expects sports betting and online casino activity to expand by 70% to 80% during 2026. Just over 10 licences are live. More companies keep showing up. "El Salvador seems to be in vogue, and there are many investors interested in entering the country. However, not everyone can obtain a license," Milián said. By his estimate, online casino takes about 80% of the regulated online market, with sports betting on the other 20%.
Affiliates should take note. One national regulator with certified suppliers is a simpler thing to build around than a patchwork of municipal permits. Milián's advice to foreign investors: set up a Salvadoran legal entity to handle tax compliance.
The timeline is tight. The LNB expects to finish its proposal in roughly a month, send it to Congress after February's elections, and have approval by March. "I believe that March could be the moment when the reform to the Organic Law of the Lottery is approved by the Salvadoran Congress," Milián said.