Costa Rica Gambling: Legal Framework for Online Gaming License
In this guide about Costa Rica Gambling, we explore everything you need to know about Costa Rican laws, processing license rules, tax requirements, and the legal treatment of online gaming operations for companies seeking to establish a company or have a presence in the region.
Understanding the Legal Framework for Costa Rican Gambling
Legislation in Costa Rica: No Federal-State Divide
Costa Rica operates under a single national legal system, meaning the same laws apply uniformly across the country. Unlike federal systems, such as the United States, there’s no distinction between local and national regulations. This creates a more straightforward legal environment for businesses exploring opportunities in the online gambling sector.
In this blog, we’ll take you through the key aspects of Costa Rica’s regulations and give you a clear picture of how the industry operates today, without the confusion of varying rules from region to region.
Is Online Gambling Legal in Costa Rica?
Yes — but with some significant limitations.
While Costa Rica does not have specific laws regulating or prohibiting online gambling companies from operating locally and targeting international markets, Law 9050 applies to data processing centers and call centers that handle electronic betting for gambling businesses operating within Costa Rica. However, this law does not apply to companies registered in Costa Rica operating exclusively in foreign jurisdictions.
This industry was once very active in Costa Rica. However, over time, the number of companies and online casinos has decreased due to rising operational costs and banking restrictions—topics we will cover later in this blog.
It’s also worth clearing up a common myth:
Many believe that obtaining a data processing license from a local municipality is equivalent to holding a valid Costa Rica gambling license. This is not true. In the past, some businesses used these municipal licenses to mislead payment processors into thinking they had a proper gaming license in Costa Rica.
Today, however, most payment processors involved in online gambling services know that a municipal license is not a substitute for a gambling license.
What is a “Linking” Company? Data Processing License in Costa Rica
Under the Costa Rican Law 9050, the “Linking Company” concept was introduced. In simple terms, a Linking Company is a business that processes data for the gambling industry but does not directly participate in betting or gambling transactions, specifically online gambling activities.
A Linking Company can operate legally in Costa Rica as a gambling operator if it meets the following requirements:
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It must register with the local municipality and obtain a special license (note: this is not a Costa Rica gaming license).
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It is subject to a tiered tax system based on the number of employees or active terminals.
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It will only be taxed if data processing activities occur within the territory of Costa Rica.
From a legal perspective, Law 9050 remains quite ambiguous. Despite being in force for several years, regulators and industry players still face uncertainty about its practical application and enforcement.
Opening a Corporate Bank Account for a Gambling Company: Why Expert Guidance Matters
Opening a corporate bank account in Costa Rica requires the expertise of professionals. Even the smallest detail in the documentation or business description can lead Costa Rican banks to categorize your company as an online gambling operation, resulting in the immediate denial of your account application.
Taxation of Online Gaming Companies in Costa Rica
Costa Rica’s tax system is based on the principle of territoriality, meaning only income generated within the country is subject to income tax. Income earned from activities outside of Costa Rica that do not involve any Costa Rican production element is exempt from the income tax.
A common misconception is that if a company produces goods or services for export, it is automatically exempt from income tax. This is not the case. If the business activity occurs in Costa Rica — even if the product or service is intended for export — the income will still be taxable under Costa Rican income tax law. However, these exported services or products are exempt from VAT (value-added tax).
Special Tax Under Costa Rican Law 9050: Data Processing License
For linking companies processing online gambling data in Costa Rica, the tax is structured as follows:
| Employees | Annual Tax (in base salaries) |
|---|---|
| Up to 50 | 57 base salaries (~$51,300) |
| 51–99 | 85 base salaries (~$76,500) |
| 100+ | 113 base salaries (~$101,700) |
💡 One base salary is approx. $900/month.
This tax applies to call centers and data hubs processing online betting data. The tax trigger is linked to data processing terminals, not necessarily employee headcount.
Income Tax Considerations: Gambling Business
First, any Costa Rican corporation must be classified as Active or Inactive. Active means that the company has financial activity that is reported in Costa Rica, inactive means that the company has no activity reported in Costa Rica, even though the principle is that even though the company is inactive in Costa Rica, if this operates in Costa Rica shall report its incomes even though are exempt, the truth is that the fine to pay is very low compare with the painting cost of reporting on monthly bases the company income, even though is generated outside of Costa Rica.
Gambling regulation in Costa Rica includes the following:
If your online gaming company operates servers and betting activities outside Costa Rica, then:
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No corporate income tax is due in Costa Rica.
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It is recommended to consider it inactive for local tax purposes, but it must still comply with:
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Corporate Tax is once a year.
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Filing of UBO (ultimate beneficiary owner) information before the Central Bank of Costa Rica. Once a year
- Filing of Tax information once a year.
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It is worth noting that although the activity performed overseas will be exempt in Costa Rica, each operator must still pay taxes in the jurisdictions where the company conducts business.
License application for Online Gaming in Costa Rica
Contrary to misconceptions, Costa Rica does not issue online gambling licenses for companies targeting foreign users. The country allows such businesses to operate without a specific gambling license, as long as:
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No betting activity takes place within Costa Rica.
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The company operates outside the scope of the Social Protection Board.
Anti-Money Laundering (AML) and Compliance in Costa Rica for Gaming License
Under Law 8204, AML obligations apply to:
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Banks and financial institutions
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Currency exchange companies
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Physical casinos
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Real estate agencies
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Jewelry dealers
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Legal and financial professionals
Online gaming companies not conducting business in Costa Rica are not obligated to comply with Costa Rican AML reporting requirements.
Judicial Precedents on Online Gambling in Costa Rica
No judicial rulings have contradicted or restricted Costa Rican online gambling operations for foreign markets. This legal silence offers a stable environment for operators and investors looking to enter the iGaming industry.
How to Start a Gambling Company in Costa Rica (Targeting International Markets)
Setting up a Costa Rican company to operate online gambling from abroad is straightforward:
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Incorporate the company through a public notary at a legal firm.
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Register with the Tax Authority (as active or inactive).
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Fulfill three key annual obligations:
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Legal entity tax
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Final Beneficiary Declaration
- To pay the yearly corporate tax.
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Costa Rica Online Gambling: A Legal and Safe Option
- Costa Rican laws allow international online gaming businesses to operate without a local gambling license.
- Law 9050 taxes only apply to linking companies and only if data processing occurs in Costa Rica.
- There is no law prohibiting offshore iGaming businesses from incorporating in Costa Rica.
- Companies operating outside Costa Rica are exempt from local income and gaming taxes.
- Costa Rica offers a legally safe, tax-efficient, and stable jurisdiction for international gambling companies. Just getting a Data Processing License.
Frequently Asked Questions (FAQs) to obtain a data processing license for a gaming business in Costa Rica.
Is online gambling legal in Costa Rica?
Yes, as long as the operations are not targeting Costa Rican residents and are outside the country. There is no express prohibition on online gambling services outside the Costa Rican government.
2. Do I need a gambling license to operate from Costa Rica?
No. Costa Rica does not issue gambling licenses for international operators. However, you may need to get a license for data processing at the Municipality where your office is located, if operating a local gambling business from Costa Rica.
3. Are online gambling revenues taxed in Costa Rica?
Only if the activity occurs within Costa Rica, offshore income is not taxed under Costa Rica’s system.
4. Can a Costa Rican company hold a gambling license from another country?
Yes. The company can operate internationally with a foreign license and remain inactive for tax purposes in Costa Rica.
5. Is AML compliance required for online gaming companies?
Only if the company operates in Costa Rica or meets AML thresholds, purely offshore operations are exempt from Law 8204.
🚀 Launch Your Online Gambling License in Costa Rica with Trusted Legal Support
At AG Legal, we specialize in helping international clients set up and structure their iGaming operations in Costa Rica. With over 20 years of experience in corporate law, tax planning, and online gaming compliance, our legal team ensures your business is fully aligned with Costa Rican and international legal frameworks, allowing you to operate efficiently and securely in global markets.
📩 Contact us today for a free consultation and find out how to start your online gaming business in Costa Rica with confidence.
👉 www.aglegal.com | 📞 +506 2257 0006 | ✉️ info@aglegal.com
