Setting up an iGaming entity in Costa Rica: Why Operators Still Choose a Light-Touch Jurisdiction

As global regulation is tightening to curb illegal online gambling, offshore operators are facing more pressure to move front-end licensing to more stringent, transparent jurisdictions. But for operators seeking low-cost and fast company set-up, Costa Rica sits as an exceptional back-office jurisdiction, offering huge cost advantages and operational clarity for core business functions.

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With the absence of a stringent regulatory framework, Costa Rica attracts international operators and start-ups, seeking to launch quickly, test new products or audiences, or scale operations into the international market.

From customer support, marketing to corporate structuring, we cover everything you need to know about setting up an iGaming entity in Costa Rica.

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Costa Rica’s iGaming Regulation in 2026

Last year Costa Rica came under scrutiny for its flexible gambling regulations, or as some have put it, an ‘outdated’ regulatory framework which was last updated 50 years ago and introduced long before online gambling activities.

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To keep up with tightening international standards, the Social Protection Board, which oversees Costa Rica’s lottery activities, proposed a new framework in June 2025 to modernise the country’s regulation and encompass digital platforms, mobile apps, and electronic systems.

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Despite an initial approval by Junta de Protección Social (JPS) in November 2025, the Security and Narcotics Commission of the Legislative Assembly rejected Bill No. 25,057 in 2026, voted down with five votes against and only three in favor.

With the commission divided, Costa Rica is presently at a standstill with no hope of progressing its regulations unless the full assembly votes to reject the committee’s findings.

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‍What’s the current iGaming regulation for operators in Costa Rica?

Costa Rica permits iGaming activities and holds a developed industry of international iGaming operators taking advantage of its business-friendly environment. However, the local market is strictly forbidden, and operators must use international financial institutions for transactions instead of local banks.

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Costa Rica’s law outlines that online gambling takes place not because the operator is based within the country, but because of mutually processed transactions between players and operators.

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How Costa Rica’s iGaming licensing regime works

For operators seeking to set up shop in Costa Rica, they must apply for an iGaming license which is technically defined in the country as a data-processing license. As a data-processing business, operators can legally provide gambling services to the international market by following a straight-forward company set up.

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How to set up a Data-processing business in Costa Rica

Operators must register a company (typically an S.A. or S.R.L.), which generally takes 1-2 weeks, and open an offshore business bank account which typically takes 1-2 weeks. The estimated timeframe for company set-up usually takes 1 month in total. It is advised that operators obtain a legal opinion to state that it’s only targeting non-residents.

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What are the business costs and requirements to set up an iGaming entity in Costa Rica?

Costa Rica offers operators with exceptionally low business set up costs at around $4,000-$8,000.  The operator must submit identification of all applicants, provide proof of company ownership and proof of land use, such as an office rental agreement.

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There are no heavy substance requirements for resident shareholders, directors, or key gambling staff, however the operator must remain in good standing, meet annual obligations, maintain beneficial ownership and transparency, and maintain tax, compliance and employment compliance. Operators must be also compliant with AML legislation and responsible gambling practices.

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What are the compliance requirements in Costa Rica?

There is no strict gambling laws enforced in Costa Rica, which requires operators to self-regulate. Operators are required to meet Costa Rica’s gambling license requirements, which involve AML/RG practices.

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Banking and tax in Costa Rica

Costa Rica does not have specific banking restrictions for banking, however iGaming entities must comply with the country’s general business and tax laws. Operators aren’t permitted to work with local banks and must keep payment processing abroad. Gaming revenues generated outside of the country benefit from 0% tax, subject to the iGaming entity following the local regulations and not targeting local players or utilising local banking infrastructure.

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The benefits of setting up an iGaming business in Costa Rica

As a light-touch jurisdiction, Costa Rica is an ideal choice to set up an offshore entity in the iGaming industry to act as a base for operations. The location is ideal to host technical and support services, whilst the business targets foreign players and hosts banking offshore.

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An offshore vehicle is ideal for group governance, hosting IP and technology, staffing/contractor agreements, vendor contracts, and customer support and back-office operations. By having a clear offshore corporate structure, with a clear separation of liability with the operating model, operations can be executed efficiently such as hiring, marketing, compliance and scaling.

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Here’s a summary of the key benefits:

• Absence of expensive license fees, offering a low-cost route to market

• Business friendly with fast company set up, minimal operational requirements and efficient tax regime

• Light-touch regulation and ideal base for an operator to test innovation/new products

• Access to global markets

• Strategic location and skilled workforce

• Flexible payments and crypto-friendly

• Good privacy and business autonomy, absence of public registry of licensed operators

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Business models that suit Costa Rica

Offshore online casino operators is one of the most common and well-suited models, typically including slots-focused casino, live dealer platforms (foreign studios), and casino + crypto hybrids.

Costa Rica works because no formal gaming licence required, ability to operate internationally (non-local players only), and lower compliance and operating costs than regulated hubs.

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Sportsbook Operators (International Markets) are well suited when not targeting heavily regulated countries directly. These models include fixed odds sportsbooks, Esports betting, and peer-to-peer betting platforms.

Costa Rica is ideal because of the flexibility it offers in markets and UX, there is no local sportsbook licensing regime, and its popular for LATAM, Asia, and emerging markets.

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Poker & skill-based gaming platforms, particularly attractive for offshore player pools, places Costa Rica as a good choice. iGaming models such as online poker rooms, skill-based card games, and tournaments with foreign participants, work well because poker is often treated differently from chance-based gambling and centralised player operations don’t have heavy oversight.

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Social casino & sweepstakes models are a very strong fit for Costa Rica, such as free-to-play social casinos or gamified reward platforms. Costa Rica works because of its lower legal exposure and can be particularly attractive to US-facing operators using sweepstakes mechanics.

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iGaming affiliate and media models work super well in Costa Rica, such as casino & sportsbook affiliate sites, SEO content networks, and paid media arbitrage. No gaming licence needed for affiliates, digital marketing is unrestricted, and its ideal for performance-based revenue models.

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White-Label & B2B iGaming Services are highly compatible because the business is viewed as a technology or data-processing business and there is no direct exposure to players.

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Crypto-Focused iGaming Platforms are one of the most popular models for Costa Rica, because of the absence of a crypto-specific licensing regime and flexible treasury and payment structuring.

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Key risks, misconceptions, and outlook

Costa Rica remains a well-established operational hub for the global iGaming industry, though not a licensing jurisdiction in the traditional sense. While misconceptions persist around “Costa Rica gaming licences,” the reality is that successful operators use the country as a base for technology, marketing, support, and management functions serving international markets.

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The main risks lie not in legality, but in poor structuring, unclear compliance practices, or misalignment with payment and market requirements. When approached correctly, Costa Rica offers operators flexibility, cost efficiency, and operational freedom that few jurisdictions can match. Looking ahead, its role is set to strengthen as part of hybrid, multi-jurisdiction model, making Costa Rica an attractive choice for forward-thinking iGaming businesses seeking scale, agility, and long-term resilience rather than regulatory branding.

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Gaming Gateway

At Gaming Gateway, we provide dedicated assistance with setting up an iGaming entity in Costa Rica, including corporate services, banking and more.

As a global iGaming licensing provider, we have the experience, expertise and network to meet your business objectives.

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Speak with iGaming experts to launch your iGaming entity in Costa Rica today.

Gary Harrison

CEO

gary@gaminggateway.com