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Is Gambling Legal in El Salvador?

Regulated
Gambling is regulated and licensed by the National Lottery (LNB), covering land-based and online gaming, with mandatory registration and compliance for operators.
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    Key Information Highlights Legislation Timeline Requirements Sources

    Key Information

    Last Update 2025
    Regulatory Authority Lotería Nacional de Beneficencia de El Salvador (LNB)
    License Cost Varies

    Regulation by Activity Type

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

    Highlights

    • The National Lottery (LNB) is the main regulatory authority for all gambling activities in El Salvador.
    • Licenses for gambling, including online gaming and sports betting, are issued and overseen by the LNB.
    • Licenses are typically granted for up to ten years and can be awarded to third-party operators.
    • Operators must register with the LNB, undergo inspection, and meet legal and financial requirements.
    • Revenues from gambling licensing are allocated to health and social welfare programs in the country.
    • The Ministry of Finance and Tax Administration provide additional oversight for financial aspects of gambling.
    • Unlicensed gambling establishments face immediate closure if not authorized by the LNB within six months.
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      Legislation

      Primary Legislation

      The core legal framework governing gambling in El Salvador is established through national legislation that designates the Lotería Nacional de Beneficencia de El Salvador (LNB), or National Lottery, as the principal regulatory authority. Since 2021, the LNB has been entrusted with comprehensive oversight of all gambling activities, including traditional and electronic lotteries, land-based casinos, online gaming, and sports betting. The legislative structure empowers the LNB to regulate, supervise, and enforce compliance across these sectors. In addition, the Ministry of Finance has a supporting role in overseeing the financial aspects of gambling operations, particularly in relation to online gaming.

      Regulatory Authority

      The primary regulatory authority for gambling in El Salvador is the Lotería Nacional de Beneficencia de El Salvador (LNB). The LNB is responsible for the supervision, inspection, and enforcement of gambling laws, as well as for granting operational permissions and entering into agreements with third-party operators. The Ministry of Finance and the Salvadoran General Tax Administration provide additional oversight, especially concerning financial transactions and compliance in the gaming sector.
      • Supervising and regulating all forms of gambling, including lotteries, casinos, online gaming, and sports betting
      • Issuing operational permissions and agreements for up to ten years to third-party operators
      • Enforcing compliance and imposing penalties for unauthorized gambling activities
      • Coordinating with the Ministry of Finance on financial oversight and regulatory compliance

      License Types

      Types of Gambling Licenses in El Salvador

      • The primary regulatory authority overseeing gambling licensing in El Salvador is the National Lottery (Lotería Nacional de Beneficencia, LNB).
      • The LNB is empowered to issue licenses for a range of gambling activities, including:
        • Traditional, instant, and electronic lotteries
        • Sports betting
        • Online gambling (including bingo, slot machines, card games, and roulette)
        • Other gambling modalities that may arise in the future
      • Licenses may be granted through various legal instruments, such as permits, licenses, agreements, contracts, concessions, or public-private partnerships.
      • The standard license validity period is up to ten years.

      Application Process

      • The application process begins with preparing a comprehensive package of required documents.
      • Applicants must submit an electronic application to the LNB.
      • The LNB conducts a review of the submitted documentation and assesses the financial condition of the applicant.
      • An inspection of the proposed gambling operation may be conducted by the LNB.
      • The LNB Board of Directors makes the final decision on whether to grant the license.
      • The applicant company must be registered with the relevant government authorities and have a corporate bank account in El Salvador.

      Duration and Renewal

      • Gambling licenses in El Salvador are typically valid for up to ten years.
      • Renewal procedures are determined by the LNB and require the operator to remain in full compliance with all regulatory requirements.
      • Failure to secure proper authorization within six months of operation may result in immediate closure of the gambling establishment.

      Eligibility Criteria

      • Applicants must be legal entities registered in El Salvador.
      • The company must demonstrate financial stability and the capacity to operate the proposed gambling activities.
      • All key personnel and shareholders may be subject to background checks.
      • Compliance with anti-money laundering and responsible gaming standards is required.

      Licensing Costs and Financial Requirements

      • There is no publicly specified minimum capital requirement for obtaining a gambling license in El Salvador.
      • The application and licensing fees are determined by the LNB and may vary depending on the type and scale of gambling operation.
      • Operators are required to maintain sufficient financial reserves to ensure the integrity and solvency of gambling activities.
      • Additional fees may apply for inspections, renewals, and regulatory oversight.

      Key Requirements for Obtaining and Maintaining a License

      • Submission of all required documentation, including corporate registration, financial statements, and details of gambling systems.
      • Undergoing regulatory inspections and audits as required by the LNB.
      • Ongoing compliance with technical standards, such as the use of certified random number generators and transparent payout ratios for online games.
      • Timely payment of all regulatory fees and charges.
      • Adherence to responsible gaming measures and anti-money laundering protocols.

      Gambling Tax

      Tax Rates for Gambling Operators in El Salvador

      The taxation system for gambling operators in El Salvador is primarily focused on casino operations. The most notable tax rate is applied to casino earnings, with operators required to pay a substantial portion of their gross revenues as tax.
      Type of Gambling Operation Tax Rate Basis for Taxation
      Casinos 55% Gross Gaming Revenue (GGR)
      Lottery Included in LNB contributions Portion of ticket sales and operator earnings
      Online Gambling (including sports betting and casino) Subject to regulatory contributions and taxes (details may vary by contract and are evolving) Typically based on GGR or operator revenues

      Basis for Taxation

      • The primary basis for casino taxation is Gross Gaming Revenue (GGR), defined as the difference between the amount wagered by players and the amount paid out as winnings.
      • Lottery and other forms of gambling under the National Lottery of El Salvador (LNB) are taxed through operator contributions, which are calculated as a portion of ticket sales or operator earnings.
      • For online gambling, the tax basis is generally aligned with GGR or total operator revenues, but specific rates and structures may vary depending on the regulatory agreement or contract with the LNB.

      Tax Reporting and Payment Requirements

      • All licensed gambling operators, including casinos and online platforms, are required to report their revenues and tax obligations to the Salvadoran General Tax Administration and the Ministry of Finance.
      • Operators must make monthly tax payments based on their gross earnings, as stipulated by the regulatory authority.
      • Detailed financial reports must be submitted regularly, documenting all gaming transactions, payouts, and revenue streams.
      • Failure to comply with tax payment or reporting requirements can result in penalties, including license suspension or revocation.

      Tax Incentives, Exemptions, and Special Provisions

      • There are no widely reported tax incentives or exemptions specifically for gambling operators in El Salvador. The taxation regime is considered strict, particularly for casino operations.
      • Some online gambling agreements, especially those involving international operators partnering with the LNB, may include negotiated terms for tax contributions, but these are not standard exemptions and are subject to regulatory approval.
      • All tax revenues collected from gambling operations are allocated to health and social welfare programs as mandated by Salvadoran law.

      Prohibited Individuals

      Age Restrictions

      The minimum legal age for participating in gambling activities in El Salvador is 18 years old. Gambling operators are required to verify the age and identity of all players before allowing participation, ensuring that minors are strictly prohibited from accessing gambling services.

      Prohibited Activities and Game Restrictions

      • Unauthorized gambling activities are strictly prohibited. Only games and gambling operations specifically authorized by the National Lottery (LNB) are permitted.
      • Unlicensed gambling establishments are subject to immediate closure if they operate without LNB authorization.
      • Traditional, instant, and electronic lotteries, as well as sports betting, online bingo, slot machines, card games, and roulette, are permitted only if licensed. Any other gambling activities not explicitly authorized by the LNB are prohibited.
      • Online gambling remains in a legal grey area; only operators approved by the LNB may legally offer online gambling services.

      Advertising and Marketing Limitations

      • Advertising and marketing of gambling services must not target minors or vulnerable groups.
      • All promotional materials must include clear information about the minimum age requirement and responsible gambling messages.
      • Advertisements must not make misleading claims about the chances of winning or encourage excessive or irresponsible gambling behavior.
      • Operators are required to avoid advertising in media or locations primarily accessed by minors, such as schools or youth centers.

      Responsible Gambling Requirements and Player Protection Measures

      • Operators must implement responsible gambling policies, including self-exclusion programs and tools for players to set deposit or loss limits.
      • Information about responsible gambling and support for problem gambling must be readily available to all players.
      • Operators are required to ensure the transparency and fairness of games, including regular checks of random number generators and payout ratios for online slots and other games.
      • Operators must provide secure mechanisms for player identification and data protection to prevent fraud and safeguard player information.

      Geographic and Location Restrictions

      • Physical gambling venues must be located in areas authorized by the LNB, with restrictions on proximity to schools, religious institutions, and other sensitive locations.
      • Unlicensed or unauthorized venues are subject to immediate closure by regulatory authorities.
      • Online gambling services may only be offered by operators with explicit approval from the LNB, and access may be restricted to residents within El Salvador’s territory.
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        Timeline

        Year/Date Event
        1960s State-run National Lottery (Lotería Nacional de Beneficencia, LNB) established, marking the beginning of formal gambling oversight in El Salvador.
        1990s Expansion of lottery and charitable gaming activities under LNB, with limited regulation of other gambling forms.
        Early 2000s Casino-style gambling and electronic gaming machines begin to appear, but regulation remains fragmented and largely focused on lotteries.
        December 2021 Ministry of Finance submits a new online gambling bill to the Legislative Assembly, proposing to give the LNB authority to regulate and license online gambling, sports betting, and other new gaming modalities.
        2021 National Lottery (LNB) officially designated as the highest regulatory body for all gambling activities, including traditional, electronic, and online games, with powers to license, supervise, and penalize operators.
        2022–2025 Implementation of the updated regulatory framework, with the LNB actively issuing licenses, monitoring compliance, and overseeing both land-based and online gambling activities.

        Requirements

        Software Certification and Technical Standards

        • Random Number Generators (RNG) and payout ratios for online slots and other games must undergo ongoing checks to ensure transparency and fairness. Operators are required to demonstrate that their gaming software meets standards for randomness and reliability.
        • All gaming systems and software must be certified by independent testing laboratories approved by the regulator to confirm compliance with technical standards.
        • Technical systems must be capable of providing real-time data to the regulatory authority for monitoring and oversight purposes.

        Data Protection, Privacy Measures, and Server Location

        • Operators must implement robust data protection measures, ensuring the security and confidentiality of player data in accordance with national data privacy laws.
        • Technical infrastructure should include secure data encryption, access controls, and regular security audits to prevent unauthorized access or data breaches.
        • There may be requirements for servers hosting gambling operations to be located within El Salvador or in approved jurisdictions to facilitate regulatory oversight and compliance checks.

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

        • Operators are required to implement comprehensive AML programs, including the identification and verification of all customers before allowing participation in gambling activities.
        • KYC procedures must include the collection and verification of personal identification documents, proof of address, and ongoing monitoring of player transactions for suspicious activity.
        • Operators must report suspicious transactions and comply with the reporting obligations set by the national financial intelligence unit and the Ministry of Finance.

        Financial Reporting, Auditing Standards, and Record-Keeping Requirements

        • Operators must maintain accurate and up-to-date records of all financial transactions, player activity, and game outcomes for a period specified by the regulator.
        • Regular financial reporting to the regulatory authority is mandatory, including submission of audited financial statements prepared in accordance with recognized accounting standards.
        • Operators are subject to periodic audits by independent auditors appointed or approved by the regulator to ensure compliance with financial and operational requirements.

        Technical Implementation Requirements for Responsible Gambling Tools

        • Operators must integrate responsible gambling tools into their platforms, such as self-exclusion mechanisms, deposit and loss limits, and reality checks to promote player protection.
        • Technical systems should allow players to set personal limits and self-exclude from gambling activities easily and effectively.
        • Operators are required to provide clear and accessible information about responsible gambling resources and support services on their platforms.

        Sources

        Primary Regulatory Authorities

        Legislation Resources

        Contact Information

        • Lotería Nacional de Beneficencia de El Salvador (LNB): Phone: +503 2528 1000 Email: info@lnb.gob.sv Address: Final 1a. Calle Poniente y 43 Av. Norte No. 2310, San Salvador, El Salvador
        • Ministry of Finance (Ministerio de Hacienda): Phone: +503 2244 3444 Email: atencionciudadana@mh.gob.sv Address: Edificio Ministerio de Hacienda, Alameda Juan Pablo II y 17 Avenida Norte, San Salvador, El Salvador
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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: 21 April 2025