Costa Rica Gambling License

Despite the large number of advantages, gambling in Costa Rica has several disadvantages:

Lack of popular payment providers.
Since there is no real gambling license in Costa Rica yet, companies cannot work with providers that are familiar to everyone – Visa, MasterCard, and others.

Limitation of client base
Having a registered business in Costa Rica, you will not be able to serve residents.

Obstacles to opening corporate accounts
Opening a corporate account in Costa Rica for a gaming business is often complicated due to the strong U.S. influence on the country’s banking system, making it difficult to establish banking relationships.

As there are no specific requirements for gambling companies in Costa Rica, operators must comply with the general legislative rules that apply to any type of business in the jurisdiction:

AML/KYC regulations:
Gaming companies in Costa Rica must follow the national legislation for the prevention of money laundering and terrorist financing (AML/CFT). This includes the obligation to implement a know-your-customer (KYC) policy, as well as maintain customer identification records, monitor financial transactions for suspicious activity, and report it to the appropriate authorities.

Bookkeeping:
Each company must keep accounting records according to local legal standards. Commercial Code requirements are to keep records in Spanish. A ledger, inventory, meeting minute book, and shareholder register must be maintained.

Internal Controls:
Costa Rican gaming companies are required to maintain detailed records for each player, including records of deposits, wagers, and transactions, and make this data available for external audits. They are also required to keep records of all games, including rules, results, and payouts, and provide this information to local authorities for 5 years, while the systems and software of the games must be open to inspection by auditors.

It is prohibited to operate within the jurisdiction:
Confirmation is required that your activities will extend to players living outside the jurisdiction. The ability of local players to access your site should be restricted by IP blocking.

In addition, there are general requirements that comply with the rules of many jurisdictions:

• company registration
• local office
• employee insurance
• proof of inspection by the municipality
• register all employees with CCSS (Caja Costarricense del Seguro Social)
• host servers in the jurisdiction

As mentioned earlier, there is no such thing as a Gaming License in Costa Rica. To carry out its activities, a gambling company acts as a legal entity that is engaged in online gambling.

However, according to local legislation, the company can obtain a data processing license in Costa Rica.

The license, issued by the local municipality of Costa Rica, provides the holder with the following capabilities:

• Processing customer data.
• Providing gambling services both online and in physical gaming establishments in Costa Rica.
• The ability to offer a wide range of gambling games including card games, roulette, craps, sports betting, bingo, keno, and virtual slot machines.
• Authorization to provide gaming services on the Internet.

However, this license also does not allow to provision of services to residents and is focused only on activities outside the jurisdiction.

The first step for starting a business in this jurisdiction is to register a company. The whole process takes about 3 weeks together with the preparation of the documentation package.

First, you need to choose a company structure. According to the Commercial Code, there are 6 types of companies:

• Corporation.
• A limited liability company.
• Joint Stock Company.
• An individual limited liability company.
• A general partnership.
• Limited liability company (limited partnership).

Note the incorporation of a corporation or limited liability company, they have significant advantages:

• There are no initial requirements for the amount of authorized capital.
• The company’s shareholding is not limited to the possibility of 100% ownership by non-residents.
• Flexibility in the selection of directors without strict conditions.
• The company registration process is characterized by high speed.
• Comparatively low costs of starting a company.
• Excellent option for the crypto-gambling business, as the law allows wages to be paid above the minimum in cryptocurrency, although the minimum must be paid in fiat.

Registration requirements:

• Hire a legal representative or local agent who will be responsible for legal matters and operations.
• The company must have 2 or more shareholders.
• Rent a local office.

You will also need to collect the following package of notarized documents in Spanish:

• Articles of Association of the company
• Power of Attorney
• Copies of the passports of the beneficiaries
• Authorization from the Department of Immigration and the Ministry of Health
• Office Lease Agreement
• Insurance for employees

After selecting the legal structure for your company, the basic steps for setting it up in Costa Rica include:

• Verifying and reserving a name for your company.
• Preparing the documentation package
• Opening a corporate account in a foreign bank to conduct business.
• Conducting due diligence checks on all parties involved.
• Paying the state duty for company registration.
• Applying to the National Registry of Costa Rica
• Registration of the shareholders’ agreement (must include complete information on the purpose, main objectives, capital information)
• Registration with the Internal Revenue Service with the completion of Form D-140 and obtaining a tax number (NIT).
• Filing a Declaration of Ultimate Beneficial Owner (UBO) with the Central Bank of Costa Rica (the declaration must include personal and contact information, stock and capital information).
• Registration of the company as an employer with the Social Security Agency.
• Applying for national insurance and insurance against risks related to the company’s activities.