Legal Requirements for Starting a Gaming Company in Costa Rica

Costa Rica has gained recognition as a popular destination for entrepreneurs looking to establish online gaming companies. However, the country’s legal landscape is unique and requires a nuanced understanding. Contrary to what some might believe, there is no such thing as a Costa Rica gaming license. Instead, the country offers a regulatory environment that allows operators to run online gaming businesses without needing a traditional gambling license. Here’s a detailed look at what you need to know to start a gaming company in Costa Rica.

No Costa Rica Gaming License

One of the most important aspects to understand about Costa Rica is that it does not issue any kind of official gaming license. This can be surprising for those unfamiliar with the country’s legal framework. In Costa Rica, there is no licensing authority, specific iGaming laws, or regulatory oversight tailored to the online gambling sector.

Despite this, it is entirely possible to operate an online gambling business from Costa Rica. What you need is not a license but rather a Costa Rican company explicitly established to provide online gambling services. This company operates under the premise that it offers online gambling to users outside of Costa Rica, as online gambling within the country is illegal.

It’s essential to be wary of any service providers who claim to offer a Costa Rica gaming license at a steep price—such a license does not exist, and these claims are misleading. Instead, the correct approach is to establish a Costa Rican company with the business objective of providing online gambling services to international clients.

The Process of Establishing a Costa Rica Gaming Company

Starting an online gaming company in Costa Rica involves incorporating a corporate entity that explicitly outlines online gambling as its business purpose. There are two main routes to take:

1. Shelf Companies: These are pre-incorporated companies ready for transfer. They have already gone through the incorporation process and can be transferred to the new owner. After the transfer, the company name can be changed to align with local legislation and your business's specific needs.
2. Custom Incorporation: Alternatively, you can choose to incorporate a brand-new company. This process involves passing due diligence checks, submitting all required documentation, and waiting for the company to be officially registered. Fast Offshore, a corporate service provider with extensive experience in Costa Rica, can assist in this process, ensuring that all legal and bureaucratic requirements are met.

Operating Without a License: The Implications

While the absence of a gaming license in Costa Rica simplifies the setup process, it also comes with limitations. Most notably, because there is no formal regulation, you will not be able to work with conventional payment providers such as Visa, MasterCard, or other major financial institutions. Costa Rican banks and other financial institutions typically refuse to open accounts for unlicensed online gambling companies.

However, this does not mean you are without options. Many Costa Rican gaming companies operate using cryptocurrency as their primary means of transaction. The country’s government is notably crypto-friendly, even allowing companies to pay employees in digital currencies for earnings above the minimum wage. This crypto-centric approach allows you to operate effectively in the online gambling market, particularly if your target audience is comfortable using cryptocurrencies.

Benefits of Operating a Gaming Company in Costa Rica

Despite the lack of a formal license, Costa Rica offers several significant advantages for online gaming operators:

• Business-Friendly Environment: Costa Rica is known for its political stability and business-friendly atmosphere. The government’s hands-off approach to online gambling, as long as it targets foreign users, makes it an appealing choice for entrepreneurs.
• Quick Setup: Establishing a Costa Rican company is relatively quick and straightforward, particularly with the assistance of experienced service providers like Fast Offshore.
• Tax Benefits: Costa Rica does not impose taxes on revenue generated by online gambling companies operating internationally. This can be a significant advantage for startups looking to minimise expenses during their initial growth phase.
• No Strict Regulations: The absence of a stringent regulatory framework allows for more flexibility in how you run your business. You are not required to meet specific gambling obligations, which reduces overhead costs and administrative burdens.
• Crypto-Friendly: If your business model involves cryptocurrency, Costa Rica is an ideal location. The government’s positive stance on digital currencies provides a favourable environment for crypto gaming operations.
• Testing Ground: Costa Rica is an excellent jurisdiction for testing new gaming concepts. Entrepreneurs can use the country as a ‘sandbox’ to refine their platforms and software before moving to a more regulated jurisdiction where a formal license is required.

Moving Beyond Costa Rica

While Costa Rica provides an excellent starting point, some businesses may eventually seek to operate under a more formalised licensing regime, particularly if they wish to expand their payment options or attract players from regions with stricter gambling laws. Fast Offshore recommends using Costa Rica as an initial base to test the market and then transitioning to jurisdictions like Curacao or Kahnawake, which offer more formal gaming licenses.

Conclusion: Why Partner with Fast Offshore?

Starting a gaming company in Costa Rica can be a strategic move, especially for startups looking to enter the iGaming industry with minimal upfront costs and regulatory burdens. However, navigating the process requires careful planning and a deep understanding of the local legal environment. Fast Offshore, with over 26 years of experience in both Costa Rican and international gaming markets, is ideally positioned to help you set up your gaming company smoothly and efficiently.

Whether you’re looking to establish a Costa Rican gaming company or considering moving to a licensed jurisdiction later on, Fast Offshore offers comprehensive support, from incorporation to ongoing corporate services. Contact Fast Offshore today to learn more about how we can help you make the most of Costa Rica’s unique position in the online gaming industry.