Gambling Laws and Regulations in Costa Rica: A Complete Guide by Altenar

Costa Rica has become a major operational base for international iGaming operators thanks to fast setup times, low costs, and an offshore-friendly legal environment. While its reputation is often shaped by outdated forums, the country continues to offer a unique model: regulated land-based casinos inside hotels, a state monopoly on domestic lottery and sports betting, and a permissive—but strictly offshore—framework for online operators.

Brief History of Gambling in Costa Rica

Historically rooted in regulated gambling since the early 20th century, Costa Rica evolved into a global iGaming hub in the late 1990s due to its tech-friendly landscape and absence of specific online gambling laws. Today, around 300 companies still run international operations from Costa Rica under municipal data-processing licences.

Timeline of Events

The following timeline charts the key laws, changes, and milestones in Costa Rica’s gambling history, tracing the country's evolution from early regulation to its current status as a central hub for international online operators.

1880s: First recorded evidence of gambling in Costa Rica

1922: Law No. 3/1922 prohibits chance-based gambling activities

1991: Decree No. 20224-G allows hotel-based casino licensing

1990s: First offshore online gambling firms arrive in Costa Rica

2001: AML Law No. 8204/2001 was passed, targeting financial crime

2009: Law No. 8718 grants lottery / sports betting monopoly to JPS

2012: Law No. 9050 introduces a gambling taxation framework

2015: Decree No. 39231-MSP-MH formalises tax regime for casinos

2018: Costa Rica becomes an offshore base for iGaming

2021: JPS launches pilot for regulated online gambling concessions

2025: Pilot remains pending - the legacy offshore model continues

There is no formal iGaming licence. Instead, operators set up a local company, obtain a municipal data-processing permit, and are prohibited from serving Costa Rican players. Compliance obligations include AML controls under Law 8204/2001, MEIC advertising rules, and maintaining servers within Costa Rica. Taxes are minimal because the country follows a territorial tax regime, exempting foreign-sourced gaming revenue.

Costs remain low: municipal permits typically range from $5,500–$7,500, renewals are inexpensive, and corporate obligations are straightforward. The model appeals to operators seeking fast deployment, low overhead, and an established offshore ecosystem. However, limitations include lack of access to the domestic market, banking hurdles due to Costa Rica’s grey regulatory status, and competition from long-standing operators.

Despite uncertainty around future reforms, Costa Rica remains one of the most efficient launchpads for iGaming companies targeting North America, LatAm, and Caribbean markets.

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