Gambling License in El Salvador

El Salvador has emerged as an intriguing jurisdiction for the gambling industry, particularly after its significant regulatory overhaul in late 2021. El Salvador gambling licence sits under a single national regulator, the Lotería Nacional de Beneficencia (LNB). That centralisation has cut municipal disputes and created a clear route for online casino and sports betting permits.

Advantages gambling license in El Salvador

• Emerging market potential. El Salvador is a relatively new player in the regulated online gambling space, presenting opportunities for early entrants to establish a strong market position.
• Attractive license validity. Licenses can be valid for up to 10 years, providing long-term operational certainty and a strong return on investment.
• Unified coverage. A single licence may encompass both B2B and B2C operations.
• Swift processing. Licensing decisions are usually issued within 2–3 months, which is relatively quick compared with other jurisdictions.
• Territorial taxation. Income earned outside El Salvador is exempt from the 30% corporate income tax.

Requirements for Obtaining gambling license in El Salvador

• Both local and foreign companies are eligible, though having a local company is often more practical.
• For local companies, a minimum of US$2,000 in authorized capital is required.
• The local company must have at least two owners and two directors (or a director and a secretary).
• A local tax representative is required.
• The gambling platform must be approved by the regulator (LNB) to ensure it meets all specified technical requirements.
• A comprehensive plan is essential, detailing operation of each game on the platform, procedures for ensuring responsible gaming, AML/CTF procedures, detailed business launch plan.
• Applicants must present a robust financial plan covering a 10-year period, including projections for job creation. 
• Establish a local physical office.
• A bank guarantee, the amount of which is determined by the regulator, is required.
• The applicant and all key personnel must provide documentation confirming financial and credit history, criminal record checks, relevant experience.

Process of applying for a gambling license in El Salvador

1. Register a company.
2. Obtain a corporate tax number.
3. Set up a corporate bank account.
4. Collect and prepare all necessary documents for El Salvador gambling license.
5. Send the completed application alongside supporting documents to the LNB.
6. The LNB will conduct thorough due diligence on the applicant, key persons, and the proposed operations.
7. Upon approval, the one-time license fee will be payable.
8. The license is granted.

How to start a gambling license in El Salvador

1. Engage with legal experts specializing in gambling law and El Salvadoran regulations, such as SBSB Fintech Lawyers, to ensure compliance from the outset.
2. Establish a local company in El Salvador or prepare the necessary documentation for a foreign entity.
3. Develop a comprehensive business plan. This is a critical document. Invest time in creating a detailed and realistic plan that addresses all regulatory requirements.
4. Ensure your platform is fully developed and compliant with the LNB’s technical specifications before application.
5. Secure the necessary capital and prepare a robust 10-year financial plan, including the bank guarantee.
6. Prepare all personal and corporate documentation for credibility checks.

Types of Licenses for gambling license in El Salvador

Gambling in El Salvador is allowed in the following forms:

• Traditional lottery
• Instant lottery
• Electronic lottery
• Online games
• Sports odds

Overview of gambling license in El Salvador

Online gambling in El Salvador moved from prohibition to regulation only recently. After years of fragmented mayoral oversight, the Organic Law of 31 December 2021 appointed the LNB as the sole regulator of all gambling, including online casinos, sports betting and lotteries. The regime now offers a unified licence valid for up to 10 years with a one-time fee of EUR 100,000, creating a stable environment for operators and investors.

Renewal of gambling license in El Salvador

For renewal, companies must prolong their office and address, pay local tax representative and, where applicable, a secretary. They are also required to submit annual financial statements and settle corporate income tax liabilities. Notably, no annual licence renewal fee applies, as the law requires only a one-time payment of EUR 100,000 for the entire licence period.

Gambling License in El Salvador