What is the procedure for obtaining a gambling license in Costa Rica?

Costa Rica is an offshore jurisdiction that houses many online gambling projects. That’s for a reason, given the country’s lenient regulatory approach and very few restrictions imposed on businesses. In order to obtain an online gambling license in Costa Rica, it’s important to know the procedure in detail, from local company formation to the licensing application submission and opening of a bank account. In this article, you will find all the information you need.

Does Costa Rica have a specific regulatory body for gambling licenses?

As a rule, Costa Rica doesn’t have a centralized regulatory body that would issue online gambling licenses to companies. The license issuing process and ongoing compliance are both curated by municipalities depending on the company’s exact place of registration. This being said, there is a legislation upon which the Costa Rica gambling license issuance is based. It is called the Commercial Code of Costa Rica (Código de Comercio). In it, license applicants will find the available business structures for registration, as well as the main compliance requirements.

What are the initial steps involved in applying for a gambling license?

The first step towards obtaining an online gaming license in Costa Rica is always forming a company. Entrepreneurs can choose between two company types to incorporate in the country: SA (Sociedad Anonima), which is the same as a Limited company, and SRL (Sociedad de Responsabilidad Limitada), which equals an LLC. When it comes to online gambling platforms, the most widespread corporate structure is the LLC. The process involves preparing a set of necessary documents, opening a local office with an address in Costa Rica, and securing a corporate bank account. Once the company is formed, one can proceed to the licensing application.

Are there different types of gambling licenses available in Costa Rica?

As a rule, there is no classification of gambling licenses in Costa Rica to date, as the country does not have a unified licensing framework for this type of business model. Nevertheless, the absence of license types and classes substantially simplifies the registration process: after you form a company and submit all the required documents, your application will be reviewed, and the license will be practically in your hands.

What documentation is typically required as part of the application process?

Along with the licensing application, a company owner must prepare an obligatory package of documents. It includes the AML/KYC compliance policies and agreements, identity documents of the beneficiary owner(s) and local director(s), a local address of the company registered in Costa Rica, and a detailed business plan with a description of planned activities. A trusted legal advisor can assist you with the preparation of all the paperwork, especially if it’s your first time registering an online gambling business in Costa Rica.

Is there a residency or physical presence requirement for obtaining a license?

Costa Rica does not impose strict residency requirements on the beneficiary owners or directors of the companies. However, it is essential to comply with the physical presence requirement in the country: every company applying for the online gambling license in Costa Rica must have a local office space with a registered address. At the same time, operational activities, such as server hosting and customer support, can be conducted from other jurisdictions.

What are the typical fees associated with applying for and maintaining a gambling license?

Every business owner wanting to expand their operations to the Costa Rica market will have to pay an annual licensing fee, as well as, in some cases, a quarterly maintenance fee. The licensing costs in Costa Rica are comparatively modest, at about $5,000 to $10,000 per year. However, the final price can be modified depending on your company structure, including business models and planned activities. Some extra expenses might be involved, such as technical and cybersecurity audits or notary fees.

How long does the application process usually take?

Costa Rica presents an ideal opportunity for entrepreneurs who want to enter the global online gambling market fast. Along with the preparation and submission of all the required documents, the whole process takes no more than a month on average. In many cases, it can be sped up even further, especially if you have a reliable legal partner on your side.

Are there specific requirements for the software and platforms used by licensed operators?

Costa Rica does not impose specific technical standards or software requirements for online gambling platforms. However, operators are expected to ensure fairness and security of their products, as well as compliance with international security and data protection standards. For this, implement measures to guarantee fair play and protect user data, and adhere to best practices in online gambling operations, especially if targeting players from jurisdictions with stringent regulations.

Does Costa Rica have any restrictions on the jurisdictions where licensed operators can offer services?

While Costa Rica's regulatory framework is generally lenient, there are some important restrictions to consider. Local online gambling operators are prohibited from targeting Costa Rican residents. In addition, caution is advised when offering services to players in countries with strict online gambling laws, such as the United States. Operators should implement geo-blocking measures to restrict access where necessary.