Costa Rica Gaming License

Costa Rica gaming license

• The Costa Rica gaming license encompasses a data processing license for gambling services. This license allows the formation of online all types of gambling services, including casinos, sportsbooks, poker, bingo, lottery, fantasy sports, crypto-gambling, and more under one umbrella license. In Costa Rica, there is no gambling law and therefore, no separate and segmented licensing regime.  

• All a company needs to do to be able to legally operate without limits internationally is to register company in Costa Rica and then get a license for processing from the municipal authorities. The one restriction is that a company that operates in Costa Rica gaming license cannot provide services to Costa Rican residents, but they are free to provide services to international markets. 

• Costa Rica has become a popular location for online gaming companies due to its liberal international regulatory environment, lack of gambling taxes on revenue, and relatively low startup costs. 

• Tetra Consultants helps its clients by managing the entire process from company registration, securing the license, AML/CFT compliance, as well as operational needs such as an office and banking arrangements. This streamlined process allows businesses to establish and operate quickly under Costa Rica’s flexible and low-cost licensing regime. 

Benefits of Costa Rica gaming license

Single all-encompassing license 

• Costa Rica has a single data processing license for all forms of online gambling, including casinos, sportsbooks, poker, bingo, and lotteries. This prevents the need to receive multiple licenses for different gaming products, reducing operational overhead and costs. 

Tax friendly 

• Companies licensed in Costa Rica pay no gambling tax on income. As the license is a data processing permit and there are no defined gambling taxes, many operators reinvest their profits back into the business and build rapidly without a significant tax burden. 

Flexible regulatory framework 

• There are no strict gambling laws in Costa Rica, providing a flexible regulatory framework that allows for disparate gaming formats, including newer sectors like cryptocurrency gambling, with few limitations. This level of flexibility permits the ability to innovate and create various business models. 

International market targeting 

• The offshore gaming license prohibits an operator from soliciting customers residing in Costa Rica, which makes it a suitable domicile for operators targeting international markets. This is advantageous as it helps operators avoid the complicated no-win situation while still being able to offer all the benefits of Costa Rica’s licensing. 

Cost-competitive licensing and maintenance 

• The total expenses related to obtaining the license, company registration, and ongoing compliance are more cost-competitive compared to those in other well-known gaming jurisdictions. This cost-competitiveness is beneficial for new operators and SMEs because it allows them to remain profitable without compromising their legitimacy. 

Reputation and industry recognition 

• Although Costa Rica takes a different approach to licensing, it is still widely recognized as one of the leading jurisdictions for online gaming operations around the world. There are a lot of established gaming companies using their license, meaning new companies can find credibility and comfort from being in the same jurisdiction. 

Timeline for obtaining Costa Rica gaming license

• The timeline for a Costa Rica gaming license starts from the incorporation of the company, which typically falls within 1 week and requires at least one director, shareholder, and compliance officer of any nationality, along with a physical local office. After incorporation, the legal team prepares the necessary application forms and supporting documents, and pre-fills the forms to ensure everything is correct and compliant with local regulations.  

• After statutory and operational requirements are satisfied, the license application can be submitted to municipal regulators for in-depth review, taking all and any questions or further requests from authorities into consideration as soon as possible. 

• Simultaneously, discussions with both local and international banks begin to generate interest in onboarding the business, along with a comparison table of choices to settle on the best banking partner. The corporate bank account opening is usually done within 4 weeks. The overall timeline to obtain the Costa Rica gaming license is approximately 6 to 8 weeks. 

Regulatory authority for Costa Rica gaming license

• Costa Rica gaming license requirement is only to incorporate a local entity under the Companies Act, usually S.A. or S.R.L. offices, solely targeting non-residents. A business license is obtained from the municipal authorities, with basic inspections if required. The tax on gambling operations is regulated by the Ministry of Finance under Law 9050 (2012). By Law 9050, gaming and gambling can only be operated internationally.  

• The General Gambling Law of 1922 prohibited gambling for residents but allowed businesses to serve customers outside the country. Law 9050 also recognized internet betting operators and taxed their income. Operators must comply with anti-money laundering regulations and countering financing of terrorism under Law 7786/2002 and introduce KYC and AML measures.  

Activities allowed in Costa Rica gaming license

Operating online gaming platforms 

• Companies that hold data processing licenses in Costa Rica can offer the entire portfolio of online gaming platforms, including casino games (slot machines, roulette, blackjack, live dealer games), sports betting, lotteries, and poker rooms.  

Incorporating cryptocurrency 

• Gaming platforms may also accept payment using cryptocurrencies, allow for in-game activities using crypto, and allow for betting using crypto. Costa Rica’s relatively relaxed regulatory environment allows for crypto-gambling activities to exist under the same data processing licensing construct, although crypto-gambling operators will still be subject to AML and KYC onboarding procedures. 

Providing digital and virtual gaming services 

• Operators can provide digital gaming services such as online tournaments, multiplayer, fantasy sports, and other virtual gambling products under the broad license scope. 

Engaging in cross-border gaming  

• The license allows for cross-border online gambling targeting international users outside of Costa Rica. Therefore, Costa Rica is a desirable base of operations for international operators looking to reach customers around the world, excluding residents of Costa Rica. 

Integrating gaming with digital asset activity 

• Companies can combine sophisticated digital asset activities, including tokenized in-game currencies, NFT-based assets, and blockchain-integrated gaming models, which indicates that the jurisdiction is prepared for innovative gaming technologies. 

Excluded activities in Costa Rica gaming license 

Provision of gambling services to Costa Rican residents 

• Licensees are prohibited from advertising or providing gambling services to residents of Costa Rica. The operations must ensure compliance with local laws to not allow access to Costa Rican players to their platforms. 

Conducting domestic lotteries and gambling 

• Domestic lotteries and certain types of betting within Costa Rica must be offered by a state body, such as the Junta de Proteccíon Social (JPS). Private operators are not allowed to conduct these activities with local players under the Costa Rica gaming license licensing scheme. 

Local financial transactions associated with gambling 

• Gambling financial transactions cannot be routed through Costa Rican banks or financial institutions. The license does not permit gambling financial transactions through Costa Rica’s banking system, so if licensees want to offer services to players in Costa Rica, they must use a foreign payment method or cryptocurrencies. 

Obtaining a traditional / sector-specific gaming license 

• Costa Rica does not currently provide gaming licenses for specific types of gambling activity (i.e. casinos and/or sportsbooks). It is a general data processing license, there is no local regulatory oversight connected to gambling, and therefore, companies cannot have traditional gaming licenses valid in other jurisdictions. 

Providing online gambling services without corporate registration 

• Without registering a company locally and obtaining a data processing license issued by the municipality, a company is not permitted to operate its online gambling business. This includes unlicensed provisions of informal or unregistered gambling services, all of which do not receive local legal protection or recognition. 

Providing gambling services to players from countries that ban gambling 

• Operators are responsible for adhering to international regulation and ensuring they do not provide gambling services to players from countries that have prohibited online gambling or require local licensing, in addition to not offering services to Costa Ricans. 

Steps for obtaining Costa Rica gaming license

Step 6: Corporate bank account opening 

• At the same time, Tetra Consultants’ banking team will approach various local and international banks to gain interest in onboarding your business. Based on our communication with the banks, we will provide you with a comparative table outlining each bank’s requirements, including minimum deposits, and internet banking, all this while ensuring that our clients do not have to travel. Once you select the preferred option for corporate bank account opening, the process usually takes about 4 weeks to finalize. 

Cost for obtaining Costa Rica gaming license

• When applying for a Costa Rica gaming license with Tetra Consultants, clients can expect to know exactly how much they are paying and what their fees will be. The primary costs will include offshore company registration fees, data processing license application fees, registered office fees, and preparation of compliance and legal opinion documents like AML policy and terms and conditions, followed by municipal taxes, which are based on employees working on processing betting data.  

• Nominee and administration services are optional costs for local compliance. Tetra Consultants guarantees there is nothing ambiguous and no hidden fees, we only provide clear and transparent prices and upfront, detailed breakdowns of costs, so the entire license process is effective and legitimate. 

Regulatory requirements for Costa Rica gaming license

• At least 1 director, shareholder, and compliance officer of any nationality. 

• A physical local office. 

• Register a legal company in Costa Rica with the National Registry. 

• Obtain a municipal data processing license authorizing online gambling activities. 

• Stay compliant with Costa Rica AML KYC regulations and all responsible gambling policies.  

• Use geo-blocking to prevent access from residents of Costa Rica.  

• File annual reports and renew municipal licenses on time. 

• All corporate documents must be prepared in Spanish and kept up to date.  

• No formal gaming authority exists, and compliance is based on general business and tax law. 

Common challenges in obtaining a Costa Rica gaming license

Obtaining local office and infrastructure 

• Operators are required to lease a physical office in Costa Rica and establish local infrastructure, including servers, if needed. Tetra Consultants can help you identify the right local office and comply with all regulatory requirements of the municipal efficiently. 

Requirements for corporate registration 

• It can be time-consuming to register a company with the National Registry and create all the corporate documentation as required. Each step must be taken according to local laws. Tetra Consultants will manage the entire incorporation process quickly, resulting in all documentation being approved in accordance with Costa Rican practices. 

Creating AML/KYC and compliance policies 

• For license approval, all AML and KYC policies and procedures must be created. Tetra consultants will provide adequate legal and compliance support to create your policies and ensure they are applicable to meet local regulations. 

Fees and renewals 

• There are a few fees, such as for company registration and municipal permits. Tetra Consultants provides upfront information on costs, manages payment schedules for all fees, and, importantly, manages annual renewals to maintain licenses, all without any gap in jurisdictional authority. 

Banking restrictions 

• Challenges with accessing banking services for a gambling business in Costa Rica arise from local restrictions. We help our clients source alternative international payment processors or cryptocurrency options, to allow for seamless financial activity. 

Navigating a limited regulatory framework 

• Costa Rica’s non-existence of a formal gambling regulator may present some uncertainty over operational oversight and reputation. Our local legal knowledge and regulatory experience allow us to help clients present compliance and professionalism to partners and service providers. 

Preparing for municipal inspections and reporting 

• The licensing municipality does have the right to inspect your premises and documents on a periodic basis. We can prepare you to have the proper inspections, reports, documents, and operations to smoothly prepare for inspections and to maintain regulatory compliance. 

Why choose Tetra Consultants?

• When you choose Tetra Consultants to obtain a gaming license in Costa Rica you can be confident that you are receiving professional advice and a smooth overall licensing and regulatory process. Tetra Consultants is highly experienced in gaming regulations, legislation and company formations and will support you from company registration to compliance documentation to submitting the application. We will accommodate you with our services based on your business model and operational requirements. 

Key reasons to choose Tetra Consultants include: 

• Expertise in navigating complex gaming regulations and licensing requirements. 

• Comprehensive assistance with company incorporation and local compliance. 

• Transparent pricing with no hidden fees, ensuring clients understand all costs upfront. 

• Efficient project management with clear timelines and regular updates. 

• Strong communication with regulatory authorities to facilitate smooth approval. 

• Post-licensing support includes compliance, reporting, and renewal assistance. 

• Dedicated client service ensuring personalized attention and fast response times. 

Conclusion

• With Tetra Consultants, you can be guaranteed a simple and smooth process, tailored to the distinctive gaming regulations of Costa Rica. Tetra Consultants is your expert in all aspects of the company incorporation, compliance, and licensing processes of gaining a Costa Rica gaming license. We will help ensure that your business meets all forms of regulations in an efficient and compliant manner.  

• Our clients can trust that there are no hidden fees and clear pricing for our professional guidance and assistance, including help with AML/KYC policy, local office, and continued compliance. Clients of Tetra Consultants can trust that they are partnering with experts they can rely on to complete all final steps necessary to develop and run their new gaming business, in a jurisdiction as flexible and accessible to international operators as it is in Costa Rica. 

• Contact us to know more about the Costa Rica gaming license, and our team will revert back in 24 hours. 

FAQs

Can residents gamble on licensed online casino sites?

• No. Operators cannot provide access to Costa Rican players, as gambling is illegal in Costa Rica.

What compliance do operators have without a licensing body?

• Operators are generally responsible for compliance with AML and KYC laws. Each operator is self-regulated and operates under Costa Rica’s corporate laws.

Do operators have to pay gaming license fees?

• No. There are no gaming license fees in Costa Rica. Operators only pay for company registration and municipal permits.

Do Costa Rican banks work with gambling payments?

• Typically, no. Operators usually rely on offshore payment providers or cryptocurrency solutions instead of local banks.

Is the license respected internationally?

• The Costa Rica license is recognized in several markets, but in some regions it is viewed skeptically because Costa Rica does not have formal gambling regulations.

Do you have to host servers in Costa Rica?

• No. There is no legal requirement to host servers in Costa Rica. Many operators host servers abroad while maintaining a local registration.