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CR

Is Gambling Legal in Costa Rica?

Partially Regulated
Land-based casinos are permitted in hotels and betting is state-controlled; online gambling is unregulated but tolerated for operators serving only foreign players.
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    Key Information Highlights Legislation Timeline Requirements Sources

    Key Information

    Last Update 2025
    Regulatory Authority No dedicated gambling authority; oversight by general government agencies
    License Cost Varies

    Regulation by Activity Type

    Casinos Regulated
    Online Casinos Unregulated
    Betting Regulated
    Online Betting Unregulated
    Lotteries Regulated
    Poker Regulated

    Highlights

    • Costa Rica does not issue formal gambling licenses; operators register as data processing companies.
    • Online gambling businesses must not target Costa Rican residents or use local financial institutions.
    • Land-based casinos are legal only within hotels and are subject to specific government oversight.
    • Betting activities are controlled by a government monopoly, restricting private sector involvement.
    • The legal framework is based on interpretations of the 1922 Gambling Law and subsequent government decisions.
    • Costa Rica's low-cost, business-friendly setup attracts many international online gambling operators.
    • Operators typically block Costa Rican IP addresses to comply with the prohibition on serving local players.
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      Legislation

      Primary Legislation

      Costa Rica’s legal framework for gambling is distinctive in that it does not have a comprehensive, dedicated gambling act or specific statutes directly regulating most forms of gambling, particularly online gambling. The foundational legal instrument is the 1922 Gambling Law, which originally prohibited all games of chance. Over time, this prohibition has been interpreted and modified through subsequent government decisions and regulatory practices, allowing for a limited legal gambling sector to emerge. Land-based casinos are permitted to operate within hotels, while betting activities are subject to a government monopoly. Notably, there is no specific legislation that regulates or licenses online gambling operators; instead, such businesses are able to operate by registering as data processing companies, provided they do not target Costa Rican residents or use local financial institutions for gambling transactions.

      Regulatory Authority

      Costa Rica does not have a dedicated national gambling regulatory authority overseeing the entire sector. Oversight of land-based casinos and betting is managed by various government bodies, depending on the specific activity. For online gambling, there is no formal regulatory body; instead, the regulation is effectively handled through general business registration and compliance with data processing regulations. The Ministry of Finance and other administrative entities may be involved in the oversight of land-based gambling operations, but there is no centralized authority specifically tasked with comprehensive gambling regulation.
      • Supervision of land-based casinos within hotels by relevant government departments
      • State monopoly control over betting activities
      • No dedicated national regulator for online gambling or iGaming activities
      • General business registration and data processing oversight for online operators

      License Types

      Types of Gambling Licenses Available

      Costa Rica does not have a formal gambling licensing system for online gambling. There is no official gambling license specifically for iGaming or online casino operations. Instead, operators typically register as a standard company and obtain a "data processing license," which permits them to conduct online gambling activities as long as they do not target Costa Rican residents or use local banks for transactions. For land-based casinos, operations are only allowed within hotels, and these are subject to separate, more traditional licensing and regulatory oversight.
      • Data Processing License: Used by online gambling operators, not a true gambling license but allows legal operation from Costa Rica targeting international markets.
      • Land-Based Casino License: Required for physical casinos, but only within hotel premises. These are subject to government regulation and are distinct from the online sector.

      Application Process

      • For online operations, the process involves registering a company in Costa Rica, typically as a Sociedad Anónima (S.A.) or a Limited Liability Company (S.R.L.).
      • Apply for a data processing license from the local municipality where the business is registered.
      • No specialized gambling regulatory authority is involved for online gambling; the data processing license is issued for general business activities involving data processing, which covers online gaming operations.
      • For land-based casinos, the application process is more formalized and involves direct government oversight, with requirements for hotel integration and compliance with local regulations.

      Duration, Renewal, and Eligibility

      • The data processing license is typically valid as long as the company remains compliant with general business and municipal regulations.
      • Renewal is generally linked to the continued operation and good standing of the company, including payment of annual municipal fees and submission of required documentation.
      • There are no specific eligibility criteria unique to gambling; standard company formation and business operation requirements apply.
      • For land-based casinos, eligibility is tied to hotel operation and compliance with more stringent regulatory requirements.

      Licensing Costs, Fees, and Financial Requirements

      • The cost to establish a company in Costa Rica is relatively low compared to other jurisdictions, making it attractive for startups and smaller operators.
      • Obtaining a data processing license involves paying municipal fees, which can range from a few hundred to a few thousand US dollars per year, depending on the municipality and business size.
      • There are no specific capital requirements or large upfront licensing fees for online gambling operations, only standard company setup and maintenance costs.
      • For land-based casinos, licensing fees and financial requirements are higher and subject to government determination based on the size and scope of the hotel and casino operation.

      Key Requirements for Obtaining and Maintaining a License

      • For online gambling, operators must ensure they do not target Costa Rican residents or use local banking infrastructure for gambling-related transactions.
      • Compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations is required under Costa Rican law, particularly for financial operations.
      • Maintain proper business records and submit annual reports as required by local commercial law.
      • For land-based casinos, additional requirements include integration within a hotel, adherence to government regulations, and ongoing oversight by relevant authorities.

      Summary Table: Costa Rica Gambling Licensing System

      Type Applicable Sector License/Permit Key Requirements Costs Duration/Renewal
      Data Processing License Online Gambling Municipal Data Processing License Company registration, no targeting locals, no local banks, AML/KYC compliance Low (hundreds to thousands USD annually) Ongoing, tied to business status
      Casino License Land-Based Casinos Government-Issued Casino License (Hotels only) Hotel integration, regulatory compliance Higher, government-determined As per government terms

      Gambling Tax

      Tax Rates for Gambling Operators in Costa Rica

      Costa Rica does not have a specific gambling tax regime for online gambling operators. There are no dedicated tax rates or gambling-specific levies applied to online gambling businesses. Instead, companies operating from Costa Rica are subject to the general corporate tax system that applies to all registered businesses in the country.
      Type of Gambling Operation Tax Rate Basis for Taxation
      Online Gambling Operators No gambling-specific tax; subject to standard corporate income tax Corporate profits (not GGR or turnover)
      Land-Based Casinos Subject to standard business taxes and local municipal fees Corporate profits and local taxes

      Basis for Taxation

      • There is no taxation based on gross gaming revenue (GGR), turnover, or player stakes for gambling operators.
      • Operators are taxed as ordinary businesses, meaning the basis for taxation is the net profit (corporate income) generated by the company.
      • No special gambling duties, levies, or excise taxes are imposed on gambling revenues.

      Tax Reporting and Payment Requirements

      • Gambling operators must comply with standard corporate tax filing and payment procedures applicable to all Costa Rican businesses.
      • Annual tax returns must be filed with the Costa Rican tax authorities, declaring corporate income and expenses.
      • Taxes are paid based on the general corporate tax rates, which are progressive and depend on the company’s annual income.
      • No additional or separate gambling-specific tax filings are required.

      Tax Incentives, Exemptions, and Special Provisions

      • There are no tax incentives or exemptions specifically designed for gambling operators in Costa Rica.
      • Operators benefit from the absence of gambling-specific taxes, which effectively serves as a de facto incentive by reducing the overall tax burden compared to other jurisdictions.
      • No special provisions exist for the deduction of gambling-related expenses beyond what is allowed under the general corporate tax regime.

      Prohibited Individuals

      Age Restrictions and Identification Requirements

      • The minimum legal age for participating in gambling activities in Costa Rica is 18 years old.
      • Operators are required to implement Know Your Customer (KYC) procedures, which involve verifying the identity and age of players. This is primarily to comply with anti-money laundering laws and to prevent underage gambling.
      • Identification documents, such as a government-issued ID or passport, must be collected and verified before allowing players to participate in gambling activities.

      Prohibited Activities and Game Restrictions

      • Gambling operators based in Costa Rica are strictly prohibited from offering their services to residents of Costa Rica. This includes both online and land-based gambling activities.
      • Online gambling operators must block access to their platforms from Costa Rican IP addresses and avoid processing transactions through Costa Rican banks.
      • Land-based casinos are only permitted to operate within hotel premises. Standalone casinos outside hotels are not allowed.
      • Betting activities are subject to a government monopoly and are not available through private operators.
      • Operators must not offer any games of chance or gambling services to Costa Rican residents, regardless of the game type.

      Advertising and Marketing Limitations

      • Advertising and marketing of gambling services are not allowed within Costa Rica if they target local residents.
      • Operators must ensure that their promotional materials, online advertisements, and marketing campaigns do not reach or target Costa Rican citizens.
      • Any form of local advertising, including online, print, or broadcast media directed at Costa Rican residents, is prohibited for gambling services.
      • Operators must implement technical measures to prevent their websites and advertisements from being accessible to users within Costa Rica.

      Responsible Gambling Requirements and Player Protection Measures

      • Operators are required to implement KYC and anti-money laundering (AML) policies, which contribute to player protection by verifying identities and monitoring for suspicious activities.
      • There are no specific, detailed responsible gambling measures mandated by Costa Rican authorities beyond general compliance with AML and KYC requirements.
      • Operators are expected to maintain records of player transactions and to monitor for signs of problem gambling as part of general business oversight, but there are no explicit statutory requirements for self-exclusion programs, deposit limits, or similar responsible gambling tools.
      • Player protection in Costa Rica is primarily enforced through the prohibition on local participation and the requirement that operators do not target Costa Rican residents.

      Geographic and Location Restrictions

      • Land-based casinos are only allowed to operate within hotel premises; standalone casinos are not permitted elsewhere in the country.
      • Online gambling operators must not provide access to their services from within Costa Rica and are required to block local IP addresses.
      • All gambling activities intended for Costa Rican residents are strictly prohibited, regardless of the operator’s physical location within the country.
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        Timeline

        Year/Date Event
        1922 The first Gambling Law was enacted, formally making all games of chance illegal in Costa Rica.
        1964 The Commercial Code was introduced, establishing the legal framework for commercial transactions, including those relevant to gambling businesses.
        1990s Government interpretations and regulatory practices began allowing land-based casinos to operate, but only within hotels, marking the start of a legal gambling sector.
        2000s Costa Rica emerged as a hub for online gambling operators, who could register as data processing businesses due to the absence of specific online gambling regulation.
        2017 Law 9449 was enacted, introducing Know Your Customer (KYC) requirements for financial institutions and businesses, including those in the gambling sector.
        2025 Costa Rica continues to allow land-based casinos in hotels and tolerates online gambling companies registered as data processing businesses, provided they do not target Costa Rican residents or use local financial institutions for transactions.

        Requirements

        Software Certification and Technical Standards Requirements

        • There is no specific regulatory authority in Costa Rica that mandates software certification or imposes technical standards for gambling operators. Operators are not required to obtain software testing or certification from approved labs.
        • Operators are expected to ensure the integrity and fairness of their gaming platforms independently, as there are no formal technical compliance audits or prescribed standards for random number generators or game fairness.
        • There are no mandatory requirements for the implementation of technical security controls beyond general business IT practices.

        Data Protection, Privacy Measures, and Server Location Requirements

        • Costa Rica does not have gambling-specific data protection or privacy regulations for online operators. General data protection obligations apply under Costa Rican commercial and civil law.
        • There are no legal requirements dictating the physical location of servers for gambling operators. Operators may host their servers in Costa Rica or abroad, provided they comply with general data security practices.
        • Operators are expected to implement reasonable measures to protect customer data from unauthorized access, in line with general commercial standards.

        Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

        • Operators must comply with Costa Rica’s general Anti-Money Laundering Law, which requires monitoring of financial transactions to detect and prevent money laundering activities.
        • Comprehensive control and documentation of all financial transactions are required, including maintaining records of transaction histories and reporting suspicious activities to authorities.
        • Operators are obligated to implement KYC (Know Your Customer) procedures as defined in Law 9449. This includes verifying the identity of all customers to prevent financial crime and maintaining adequate records of customer identification.
        • Operators must ensure that their platforms are not used for terrorist financing or the proliferation of weapons of mass destruction, in accordance with the Risk Prevention Regulation.

        Financial Reporting, Auditing Standards, and Record-Keeping Requirements

        • There are no gambling-specific financial reporting or auditing standards imposed by a gaming regulator in Costa Rica.
        • Operators are subject to general commercial and tax laws, which require proper bookkeeping, financial reporting, and record retention as per the Costa Rican Commercial Code.
        • Records of all financial transactions, customer identification, and AML-related documentation must be maintained and made available for inspection by relevant authorities if requested.

        Technical Implementation Requirements for Responsible Gambling Tools

        • There are no mandatory technical requirements or standards for responsible gambling tools imposed by Costa Rican law or regulation.
        • Operators may implement responsible gambling features voluntarily, but there is no regulatory oversight or prescribed technical framework for such tools.

        Sources

        Primary Regulatory Authorities

        Legislation Resources

        Contact Information

        • Ministry of Health: info@misalud.go.cr | Tel: +506 2223-0333
        • Ministry of Finance: info@hacienda.go.cr | Tel: +506 2539-3000
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          Important Information Notice

          Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.

          Last updated: 16 July 2025