El Salvador's lottery body plans reform to take over licensing of land-based casinos and gaming halls

The National Charity Lottery (LNB) of El Salvador is preparing to widen its regulatory remit to cover land-based gambling. LNB President Javier Milián outlined the plans to SBC Noticias after attending the IAGR conference for South American regulators in Lima, Peru, last week.

Under the 2021 Organic Law, the LNB supervises lotteries, sports betting and online gambling. Land-based casinos and gaming halls, however, still operate under permits granted by municipal councils. Milián said there are currently no licences for these venues and that municipal permits have limited legal scope and do not offer all the necessary guarantees. The reform would give the LNB direct responsibility for activities that now depend on local permissions, a setup he said has fragmented gambling governance in the country.

The proposals would also reach the supply chain. Machine suppliers and operators would fall within the expanded framework, with particular attention to the certification of equipment entering El Salvador. Milián said the aim is to assure players that machines in the market carry the necessary certifications. The technical standards and approval procedures have not yet been detailed.

The push comes as the LNB forecasts growth of between 70% and 80% in sports betting and online casino activity during 2026. Milián estimated that online casino makes up roughly 80% of the regulated online market and sports betting the remaining 20%. He said just over 10 licences are currently operational and that more companies have shown interest in entering the market, although not every applicant can obtain a licence because technical and legal requirements apply. He recommended that foreign investors set up a Salvadoran legal entity to simplify compliance with tax obligations.

According to Milián, the president of El Salvador has delegated responsibility for advancing sector regulation to the LNB, making the reform part of a broader government mandate to provide legal certainty. The LNB expects to finish its reform proposal in about one month. It intends to take the proposal to Congress after elections scheduled for February, with March identified as a possible approval date. Milián said he will ask lawmakers to back the LNB as it builds a stronger platform for the next stage of regulatory development.

The proposed land-based regime would still require its own legal provisions and implementation arrangements.