Costa Rica Gambling License

Upfront payments at setup: There is no license application and no municipal permit fee for online gambling. Initial spend typically covers incorporation (notary/registry), translations/notarizations, registered address for the company, and (if requested) a legal opinion. Professional services make up most of the cost. As a guideline, a first-year package is often in the low thousands of USD (many providers quote around $5,000–$7,000 including services), far below fully regulated licensing regimes.

Operating Costs in Costa Rica

Ongoing costs are modest compared to regulated jurisdictions. Typical components include:

• Company formation & corporate maintenance — One-off incorporation fees; annual corporate duties (e.g., legal entities tax), and maintenance of the registered address. A staffed office is not required.
• Law 9050 fixed levy — For companies that collect/process data generating online bets, a fixed annual levy based on employee count, paid quarterly. (Exact brackets and “base salary” values are set in law/regulation and updated periodically.)
• Compliance & local services — Optional retainer for local counsel/compliance support (filings, tax coordination, SAR/STR handling).
• Due-diligence/KYC onboarding — Private fees charged by corporate service providers, banks, PSPs, and suppliers for their own KYC/AML checks.
• Optional nominees/administration — If used, nominee/director/admin services are billed annually.

Taxation. Costa Rica applies territorial taxation: only Costa Rica–sourced income is taxed. Foreign-sourced player revenue is generally not subject to local income tax. The principal sector-specific charge is the employee-based Law 9050 levy (fixed amount by headcount). Operators should also respect any tax/reporting rules in player-origin countries.

Ongoing Obligations

Securing the data processing license is just the beginning. To continue operating smoothly, the company must meet ongoing obligations (much of which overlap with general business compliance):

• Annual renewal – Renew the municipal business license every year. This typically involves paying the annual license fee and possibly submitting a simple renewal form or confirmation that the business continues to operate as initially approved. As long as fees are paid and no laws were broken, renewals are generally routine.
• Tax filings – File the required annual tax returns and pay any quarterly gambling tax installments on time. Even if the company owes no income tax on foreign revenue, it may need to file a return declaring that or addressing any local-source income. The special gambling operations tax must be paid to avoid penalties; the Tax Ministry (Hacienda) will expect those payments based on the last reported employee count.
• Audits & inspections – Cooperate with any official audits. The Ministry of Finance can audit the company’s books to verify correct tax payment. The Municipality can inspect the premises or ask to see that the business is still compliant (for example, they could inquire if the servers are still in Costa Rica and not moved abroad without notice). Always maintain the ability to demonstrate compliance (keep a copy of the license certificate on display at the office, maintain employee records for any inspections, etc.).
• AML/KYC operations – Continue robust Know Your Customer checks for all players, especially large depositors. Keep transaction logs and if any suspicious activity (e.g., large unusual transactions or attempts at using the casino for fund movements) is detected, file a report with the national Financial Intelligence Unit. Non-compliance with AML laws can lead to serious legal issues or inclusion on watchlists. Also, register with any government registry for obliged entities if required (in some cases, casinos must register with SUGEF or ICD as “actividad vulnerable” to report AML data).
• Responsible gaming – Enforce policies such as self-exclusion and limits if a player requests them. Provide customer support and clearly post terms and conditions, including problem gambling help messages. While Costa Rica doesn’t oversee this, demonstrating social responsibility can protect the operator’s reputation and is often required by payment providers or game suppliers contractually.
• Security posture – Update and patch systems regularly. Given the absence of inspections on IT security, it’s up to the operator to ensure there are no breaches or hacks. Use proper access controls for systems, encrypt sensitive data at rest, and have an incident response plan. Data breaches could fall under Costa Rica’s privacy laws and cause liability, so prevention is key.
• Record retention – Maintain all important records: customer identification records, transaction and betting histories, financial statements, and correspondence. Under general law, accounting records should be kept for at least 5 years. AML records similarly for 5 years minimum. Even without a gaming commission, these records might be needed if any investigation arises or for corporate governance.
• Local employment law – If you have employees in Costa Rica, ensure compliance with labor laws. This includes registering them with Caja Costarricense de Seguro Social (CCSS) for social security, paying monthly social contributions, adhering to working hour regulations, etc.. Non-compliance with labor rules can result in fines or jeopardize the business license.
• Fee payments – Pay all required fees on time (municipal fees, corporate registry annual fee, etc.). Costa Rica has an annual corporate entity tax (timbre de educación y cultura and an annual legal person tax) – these must be paid to keep the company in good standing. Missing payments could lead to the company being listed as moroso (delinquent), which might eventually impair the license.
• Adaptation to law changes – Keep an eye on legislative developments. If Costa Rica enacts a new gambling law or if the municipality updates its requirements, be ready to comply. There have been discussions about empowering JPS (Social Protection Board) to oversee online gambling; if such a framework comes, existing operators might have to transition to it. Being proactive in compliance will ensure you can smoothly adjust to any new legal landscape.

Overall, running a gambling business under the Costa Rica license requires a high degree of self-regulation. The government provides a business-friendly environment but expects operators to act lawfully and ethically within that freedom.

How to Start a Gambling Company in Costa Rica

If you’ve decided that Costa Rica is the right jurisdiction for your online gambling venture, here is a simplified roadmap to get started:

1. Plan your business model and markets – Determine the scope of your operation: Will you run a B2C casino, sportsbook, poker room, or a mix? Identify your target player markets and ensure those countries allow offshore online gambling. Crucially, prepare to exclude Costa Rica itself and any restricted jurisdictions from your service. Also plan how you will handle payments (e.g., through offshore banks or crypto) to avoid using Costa Rican financial systems for gambling transactions. A clear market strategy and compliance plan at the outset will guide your setup process.
2. Engage local counsel or service provider – Retain a Costa Rican law firm or corporate services provider experienced in iGaming setups. They will assist with company incorporation, document preparation, and navigating municipal requirements. Local expertise is invaluable for handling Spanish documentation and liaising with authorities. Many firms offer turnkey packages for the “Costa Rica gaming license” setup.
3. Establish a Costa Rican company – Incorporate your local entity (usually an S.A.). Choose trustworthy local directors/nominee if needed and a resident agent. Draft the company’s purpose to include online gaming services for overseas clients (your lawyer will ensure the corporate purpose is worded appropriately). Obtain the corporate tax ID and register with social security as an employer (even if you have no employees yet, this registration may be needed to show intent to hire or for the license tax framework).
4. Secure a local office and infrastructure – Rent a small office in a municipality that is amenable to granting gaming-related data processing licenses. Some popular choices are San José or certain free trade zones. Set up the necessary infrastructure: install servers in Costa Rica (or arrange for a data center colocation) to host your platform if required. Also put in place your software platform, games, and website — you can do development before or concurrently, but ensure by licensing time you can demonstrate an operational environment. Implement your AML/KYC systems and integrate any third-party services (payment gateways, game providers) that you will use.
5. Apply for the Data Processing License – Once the company is ready and documentation compiled, submit your application to the municipal authority. This includes all the forms and supporting documents outlined earlier (business plan, AML policy, IDs, lease, etc.) in Spanish. Pay the application fee and coordinate the inspection. During the inspection, show the officials that you have an office setup (even if just servers and desks) and that no local customers are being serviced. Respond promptly to any additional inquiries from the municipality. Upon approval, obtain the license certificate. Congratulations – you are now officially licensed to operate!
6. Commence operations with compliance in mind – After getting the license, you can launch your online gambling site for your target audience. From day one, enforce geo-blocks to keep out restricted jurisdictions (including Costa Rica). Begin accepting players, but conduct proper KYC verification on them as per your policy. Set up a routine for ongoing compliance: e.g., monthly reviews of any suspicious transactions, quarterly preparation for tax payments, annual renewal reminders. By embedding compliance and monitoring into your operations early, you help ensure the longevity of your business under Costa Rica’s light-touch regime.

Types of Licenses for Gambling in Costa Rica

Unlike many countries that have multiple types of gambling licenses (casino, sportsbook, poker, etc.), Costa Rica offers just one type of license for all online gambling activities – the general business license (data processing license) described above. In effect, this is not a gaming license in the traditional sense but a broad authorization that lets a company engage in any form of online betting. Therefore, we can say Costa Rica has a single-tier licensing system for iGaming.

With a Costa Rican data processing license, an operator can legally provide the following services (all under the same license):

• Online casino games – Slots, roulette, blackjack, live dealer games, and all other RNG-based or live casino offerings.
• Sports betting – Bookmaker services for sports, eSports, and other events. Note: Domestic sports betting in Costa Rica is a state monopoly, but an offshore-facing sportsbook based in Costa Rica can take bets from foreigners.
• Poker and card rooms – Online poker networks or standalone poker sites are allowed.
• Bingo, lotteries, sweepstakes – These can be offered online to players outside Costa Rica. (Running a lottery for locals is not allowed as that is reserved for JPS.)
• Fantasy sports and skill games – Any skill-based competitions or fantasy leagues for prizes are permitted.
• Crypto-gambling services – Costa Rica is friendly to cryptocurrency-based gaming projects. There is no separate license for crypto casinos; the same data processing license applies. Crypto operations must still follow AML laws (particularly important if accepting crypto – convert and KYC as needed).
• B2B services – A company in Costa Rica can act as a B2B provider (such as game software developer, platform provider, affiliate network, etc.) without needing another license. It simply operates as a normal business. Some B2B companies get a data processing license as a formality to show clients they are authorized in Costa Rica, but effectively it’s the same license as B2C.

In summary, the Costa Rica license is one-size-fits-all. It is one of the most versatile arrangements globally, covering essentially all iGaming verticals under one authorization. This makes it especially convenient for startups that want to offer a full suite of gaming products without juggling multiple licenses.

Gambling Legislation in Costa Rica

While Costa Rica lacks a specialized online gambling law, several pieces of legislation form the legal context for gambling activities:

1. 1922 Gambling Law (Ley de Juegos de 1922) – An old law that outlawed games of chance nationwide except those expressly authorized. It laid the foundation for gambling being illegal for locals. Over time, exceptions were made: lotteries and certain betting games were given to the state-run Junta de Protección Social (JPS), and land-based casinos were later permitted in hotels. This law is why today no private entity can offer gambling to Costa Ricans without special authorization.
2. Law 9050 (2012) – “Ley de Impuesto a Casinos y Empresas de Enlace de Llamadas a Apuestas Electrónicas.” This is a key modern law that acknowledges the existence of online betting operations (termed “electronic betting data processing businesses”) and imposes a tax on them. It formally states that such companies must obtain the necessary municipal permits and pay an annual tax according to their size. It also tightened regulations for land casinos (e.g., they must be in 4-star hotels and taxed on revenues). Law 9050, in effect, legitimized Costa Rica’s practice of hosting online gambling companies by bringing them into the tax system.
3. Anti-Money Laundering Laws – The primary AML law is Law 7786 (1998), as updated by Law 8204 (2002), which includes casinos as obligated entities. There is also Law 9416 (2017) regarding registration of shareholders (to prevent anonymous companies). While not specific to gambling, these laws require that gambling operations implement AML controls and report to regulators. Costa Rica being a member of GAFILAT (Latin American FATF) means it has commitments to oversee gambling as a vulnerable sector. Thus, even without a gaming commission, online casinos are indirectly regulated through financial oversight.
4. Regulations and Municipal Codes – Each municipality may have its own ordinances or criteria for granting data processing licenses. Additionally, executive regulations to Law 9050 were issued (in 2013 and 2015) detailing tax procedures and enforcement for casinos and online betting offices. For example, the regulation requires that the Ministry of Public Security enforce penalties on unlicensed casino operations and that the Tax Ministry handle collections. Municipalities retain power to issue and revoke licenses in their jurisdiction. Prospective licensees should be aware of any specific municipal requirements (some municipalities might limit how many gambling businesses they allow or impose additional conditions like fire safety, etc., as hinted in the VUI checklist).

In essence, Costa Rica’s legislative framework for gambling is a patchwork: no single comprehensive gambling act, but a combination of general laws that together allow online gambling companies to function in an ostensibly legal manner, provided they don’t serve locals and they pay the required taxes.

Renewal of the Costa Rica Gaming License

The Costa Rican data processing license is typically valid for one year and subject to annual renewal through the local municipality. The renewal process is simple compared to other jurisdictions:

• Timing: The license runs for 12 months from the date of issuance. Prior to expiration, the operator should apply for renewal (usually 30 days before expiry).
• Requirements: If there have been no material changes to the operation (same company, same location, same nature of business), renewal is usually a formality. The operator will fill out a short renewal form or letter confirming that they wish to continue operating and that they remain in compliance with all conditions.
• Fee: Pay the annual license fee to the municipality (again, around $50 or the local equivalent, unless the municipality adjusts it). This keeps the business license active for another year.
• Tax clearance: Some municipalities may request proof that the company has paid its taxes (especially the Law 9050 tax) before renewing, to ensure they are not renewing a non-compliant operator. Having a tax clearance letter or receipts from the Ministry of Finance for the prior year’s payments can be useful.
• Updates: If any major changes occurred – for example, if the company moved to a new office, or changed its legal name, or significantly altered its operations – these should be disclosed at renewal. In some cases, a fresh inspection might be done if, say, the office location changed to a different municipality.
• Duration: Upon renewal, the license is extended for another year. There is no statutory limit on the number of renewals; the license can be maintained indefinitely year-to-year. Many operators have been running under this system for a decade or more by simply renewing annually.

It’s important to never let the license lapse. Operating without a valid permit could expose the company to closure by municipal authorities. Fortunately, renewals are straightforward and inexpensive, so compliance in this regard is low-effort.

Conclusion – Positioning and Use Cases

Costa Rica’s gambling license alternative is best suited for certain profiles of operators, given its characteristics:

• Startups & MVP Projects – Costa Rica is ideal for new entrants in iGaming who want to launch quickly and test their concept without investing huge sums in licensing. A startup can get an operational license in a month, refine its product in market, and later decide if it needs a more stringent license (like MGA or UKGC) to expand. The low cost and ease make it a perfect incubator jurisdiction.
• Experienced operators targeting “grey” markets – Even established gambling companies use Costa Rica to target regions where there is player demand but no clear licensing regime. For example, some companies run a separate Costa Rica-licensed brand for Latin America or parts of Asia, separate from their EU-licensed brands. It’s a way to tap additional markets while keeping compliance manageable. These operators appreciate the predictable yearly maintenance and the fact that they can operate multiple brands under one umbrella company in Costa Rica.
• Crypto-gambling ventures – Costa Rica has become a popular base for crypto casinos and betting platforms. The government’s hands-off approach allows crypto integration (Bitcoin, Ethereum gambling etc.) with no special license needed. As long as AML protocols are in place, a crypto gaming startup can operate from Costa Rica and accept cryptocurrencies freely. This is a big advantage over some jurisdictions that have not yet embraced crypto in gambling.
• Affiliate and support companies – In addition to actual gambling operators, many affiliate marketing companies, customer support centers, and software developers in the gambling industry set up in Costa Rica. They enjoy the same benefits (tax advantages, ease of business) and often work in tandem with Costa Rica-licensed operators, creating an iGaming ecosystem in the country.

In choosing Costa Rica, one opts for an environment with maximum business freedom and minimal direct oversight. This is a double-edged sword: it provides speed and flexibility, but also means the onus of responsible operation lies entirely on the operator. There’s no regulator ensuring fairness or protecting players – that is the company’s responsibility. Operators who choose Costa Rica should be prepared to self-impose high standards to build trust with players and partners.

Finally, it’s worth noting that if an operator eventually aims to enter strictly regulated markets (such as Western Europe or certain U.S. states), the Costa Rica license will not suffice – a local license would then be required. Many successful companies actually maintain a Costa Rica operation alongside other licenses: for example, running international/crypto operations from Costa Rica while holding a UK or Malta license for European traffic. This hybrid approach can maximize global reach.

Bottom line: Costa Rica’s gambling license regime is a strategic choice for agility and cost savings. Use it when targeting international markets that don’t demand a local license, when speed-to-market is crucial, and when you are ready to shoulder the responsibility of self-regulation. For any market that becomes regulated domestically, plan to obtain that license or exit that market accordingly.

Official Sources & Primary Legislation (Costa Rica)

Primary Acts

• Law No. 9050 of 2012 – “Ley de Impuesto a Casinos y Empresas de Enlace de Llamadas a Apuestas Electrónicas” (full text, PDF)
• Law No. 7786 of 1998 – Anti-Drug and Anti-Money Laundering Law (full text, PDF)
• Law No. 8204 of 2002 – Reform of AML Law 7786 (full text, PDF)
• Gambling Law of 1922 (full text, PDF – in Spanish)

Ministry of Finance – Dirección General de Tributación

• Ministry of Finance official website
• Online services and tax filing portal

Municipal Licensing Departments

• Ventanilla Única de Inversión (VUI) – Business license application portal
• Municipality of San José

Junta de Protección Social (JPS)

• Junta de Protección Social official website
• Authorized games and betting (Spanish)

Registro Nacional – Personas Jurídicas

• National Registry digital platform
• Company verification and certificate ordering