Costa Rica License

Costa Rica is located in Central America between Nicaragua on the north and Panama on the south. Because of the liberal approach and the flexible law system it is known to be as one of the most popular jurisdictions in the world for sportsbooks and online casinos. Over the years the number of licensed entities by the Costa Rican authorities has well surpassed 250. On top of this the license fees are one of the lowest out there. These two facts put this jurisdiction well ahead of its counterparts.

As liberal as it is gambling is illegal in Costa Rica. The decision to license online gambling entities including casinos and sportsbooks has been disputed for a long time. The local population stated it has a bad influence for the younger generations. However, the legislation was deliberately changed to strictly prohibit land casinos and sportsbooks on the grounds of Costa Rica. The licensed entities can freely operate as long as they are not offering their services and products to the people of Costa Rica.


Under the law of Costa Rica there are no different types of licenses. It all comes down to one general license for sportsbooks, casinos, lotteries etc. However, before the application process starts the entity must have an office located in Costa Rica. Once that’s settled the entity can apply for the Data Processing License. This is done at the local municipality hall.

This is another reason why this jurisdiction is so favored. The rules are straightforward, the application process doesn’t take that long and the fees are one of the lowest in this area. As long as they have no customers which are residents of Costa Rica and no illegal activities are undertaken the regulator has the operator’s best interest at heart.

Conditions in Costa Rica

As much as this topic has been disputed in Costa Rica remote gaming and sports betting has been the source of a large sum of revenues directed to the Costa Ricans. Because of this the living standard has risen to a higher level. Their territory is fairly limited so they can’t develop to be an agricultural nation, nor they have the capacity to become an industrial powerhouse. But, the gambling industry is not a demanding one as long as there’s decent communications infrastructure. Managing their licensees is their least concern.

Taxing in Costa Rica

Sportsbooks and other remote gaming and betting entities get taxed on the basis of their size, not in terms of revenues and turnover, but in terms of number of employees. This has been considered as a loop hole as some entities went rogue and fired their employees to take advantage of the tax benefits.