We present extensive multicolor (UBVRCIC) photometry of the optical aftergl
ow of GRB 980519. Upon discovery, 8.3 hr after the burst, the source was de
caying as a power law, with a rapid (t - t(GRB))(alpha), decay rate alpha (
1) = -1.73 +/- 0.04. About 13 hr after the burst a steepening of the light
curve to alpha (2) = -2.22 +/- 0.04 was observed. Within the framework of c
urrent afterglow models, we argue that the rapid initial decline, the "brea
k" in the light curve, and the spectral properties of the afterglow are bes
t interpreted as being due to a collimated ultrarelativistic jet of fixed o
pening angle expanding into an inhomogeneous medium. In this scenario, we f
ind that the circumburst medium has a density structure that goes as r(-2.0
5+0.22). This is characteristic of a preexisting wind expelled from a massi
ve star. A possible physical scenario is that the progenitor star collapsed
to form a black hole (i.e., a "collapsar"), producing the observed burst a
nd afterglow. However, the supernova signature expected in the light curve
in such a scenario is not detected. This either implies that the redshift o
f GRB 980519 is greater than 1.5 or that supernovae accompanying GRBs are n
ot standard candles.