The license in Costa Rica will allow your company to conduct legitimate business in the field of virtual gaming services. The legislation of Costa Rica that regulates activities of the companies providing gambling services is one of the most liberal in the world. Gamblingsites.org does not promote or endorse any form of wagering or gambling to users under the age of 18. If you believe you have a gambling problem, please visit BeGambleAware or GAMCARE for information and help. A Data Processing License (DPL), which we can assist with from the local government authorities; In practice, you do not require a license for gaming online, but you do require a data processing license; Incorporation process for gaming company in Costa Rica. Incorporation of a Costa Rica Company for Gaming. This entity is a S.R.L.
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Costa Rica: Access Gambling sites from Abroad FAQ. Bet365 operates under a UK gambling license and its servers are located outside of India. While the Indian. Nation or country. Nationality – a national is a person who is subject to a nation, regardless of whether the person has full rights as a citizen; National (distribution), a type of product or publication that is distributed across an entire nation, e.g., a national magazine.
There is no such thing as a Costa Rica gaming license but this doesn’t mean that you cannot operate an online gambling business from Costa Rica. While there’s no licensing authority, specific iGaming laws, or any kind of regulatory framework for the sector, this doesn’t mean that the door is closed on it as a jurisdiction.
Some corporate service providers will try and sell a Costa Rica Gaming License with a hefty price tag, but they aren’t being totally honest. While it is possible to set up an online gambling company in Costa Rica, any talk of a ‘license’ is misleading.
A Costa Rica gambling company is a corporate entity that has its object defined as online gambling. This allows the operator to conduct online gambling activities from Costa Rica in the absence of any specific regulatory framework for online casinos and betting.
A Costa Rica gaming license, or better yet, gambling company, is a great option for startups to ‘test the water’before they dive in and spend a big sum on licensing. You can set up and online gambling company, test your software, website, and the popularity of your platform with your target demographic before taking the business to the next level.
The drawbacks of a Costa Rica gaming license is that, since there is no real license, you will be unable to work with conventional payment providers and merchants such as Visa, MasterCard, etc Instead, you can offer payments in cryptocurrency, adding in fiat at a later stage should you decide to apply for a license in another jurisdiction.
To get the whole picture and understand the benefits and drawbacks of a Costa Rica gaming company, keep reading!
Why Costa Rica is Still a Viable Option for a Gaming Company?
Costa Rica is a socially, economically, and politically stable country in Central America. Its government is business-friendly, encouraging of crypto, and relaxed in its attitude towards online gambling operators. That is, as long as they only offer online gambling to those based outside of the country. Online gambling within Costa Rica is illegal and the authorities take a tough stance on those found breaking the rules.
There are, however, zero laws against anyone operating online casinos or other forms of online gambling, from within the country, to those based abroad. In fact, in cases such as this, there are zero requirements to get a license or permit of any kind.
For those wishing to operate a cryptocurrency gaming business, Costa Rica is an obvious choice. The local government is so welcoming to crypto that they even allow employers to pay their staff in crypto. The law states that up to the minimum wage must be paid in fiat currency, but anything over can be paid in virtual currencies. There are also no laws or regulations in place for online gambling operators who wish to use cryptocurrency or digital payments. This means that Costa Rica is a popular location for iGaming startups and entrepreneurs that want to use crypto to facilitate payments.
The company will then have the choice of continuing in Costa Rica and only offering cryptocurrency payments or moving to another jurisdiction that provides an online gambling license and supports the use of fiat and cryptocurrency. Fast Offshore recommends using Costa Rica as a ‘sand-box’ type environment and then acquiring a license later on in Curacao or Kahnawake.
Frequently Asked Questions: Costa Rica Gambling License
Here are some of the questions we are most commonly asked by our potential and current clients, and our answers.
Is there a Costa Rica Gaming License?
No, there is not. While people refer to a Costa Rica gaming license, it doesn’t exist and there are no laws or regulations for online gambling in Costa Rica. Rather, operators need to incorporate a Costa Rica gaming company and make it clear that the object of the company is to provide online gambling services outside of Costa Rica. Online gambling is illegal within the country so operators need to refrain from catering to Costa Ricans.
Just to be clear, the Costa Rica gambling license does not exist and the operations of Costa Rica-based online gambling sites are not licensed, regulated, or supervised in any way. Even those in possession of the “Data processing license“, are still not regulated.
How can I get a Costa Rica gaming company?
When it comes to wanting to get a Costa Rica gaming company, there are two options. Firstly, you can opt for a shelf company that has already been incorporated and can be transferred to the name of the client. These companies already have names but after they’ve been transferred, they can be renamed in-line with local legislation.
The second option is to incorporate a company with assistance from Fast Offshore. This requires going through an onboarding process, passing through due diligence checks, and submitting all paperwork that is required under Costa Rican law. There is also a processing time where you will have to wait for your company to be incorporated. Whichever option you choose, Fast Offshore can assist you every step of the way.
Can I open a bank account for an online gambling company in Costa Rica?
No, you cannot. Like other jurisdictions, banks in Costa Rica do not allow unlicensed, unsupervised, and unregulated online gambling companies to open accounts with them. As a minimum requirement, a reputable financial institution would require an online gambling license.
Instead of using fiat currencies, those with a Costa Rica online gambling company are restricted to using cryptocurrency.
Can I accept US-based players with a Costa Rica Gambling license?
Online gambling is illegal in the United States and there is no such thing as a federal license that serves the whole country. While some states have legalised online gambling, Fast Offshore does not provide any services to clients wishing to offer services to players in the United States. We take the same attitude towards any jurisdiction where online gambling is illegal or forbidden.
Do I have to disclose the ultimate beneficial owner?
The law in Costa Rica states that personal information for each shareholder and the ultimate beneficiary must be disclosed to the Central Bank of Costa Rica. This information including passport and identity numbers, contact information, share type, number of shares held, and capital are submitted via a secure platform and must be updated every year. This information is not publicly available.
In addition to this, the owner of the company (if they are not a Costa Rican national) must grant power of attorney to a third person who can appear locally to present the required information to the Central Bank. This power of attorney can only be granted in front of a Costa Rican notary either in the country or at a Costa Rican consulate where a notary is present.
What about fees and taxes?
There is no tax payable on any revenue generated by a Costa Rica gambling company. As all revenue is generated outside of the country rather than within, the authorities do not impose taxation on these companies. Furthermore, because all transactions are in cryptocurrency, it becomes complex for the tax authorities to monitor such transactions as well as factoring in fluctuations in value. Therefore, an online gambling company in Costa Rica is not required to pay any tax.
Costa Rica Gaming License Cost
As there is no Costa Rica gaming license, there is no cost associated with this. There are however costs for setting up a company in Costa Rica for gaming purposes.
Prices for a Gaming Company in Costa Rica may vary depending on the requirements you have and the services you need. We have created a standard package with absolutely everything that is required to operate.
What Does the Costa Rica Gambling Company Package Include?
- Company name check
- Filing with the registrar of companies
- Payment of filing fees
- Notarized articles of Incorporation (Escritura)
- Preparation of English translations
The process takes between 2 to 3 weeks from start to finish. As there is no regulatory framework for an online gambling company in Costa Rica and no online gambling license, the cost is much lower than in jurisdictions where an online gambling license is required.
Requirements for your Costa Rica Gaming Company
If you think a Costa Rica gaming company is the right choice for you, Fast Offshore can help you with the entire process and explain all the requirements. Should you have any questions or require clarifications on the process, we are also able to assist.
Furthermore, if you want to incorporate a Costa Rica gaming company and then move on to a licensed jurisdiction, we can assist with that as well. Contact us today to find out more.
Benefits of a Costa Rica Gaming Company
Costa Rica Sites
Incorporating a Costa Rica gaming company will enable you to provide online casino, online poker, online slots, sports betting, and other forms of online gambling, from Costa Rica. You can offer these services to customers from around the world, but not those in Costa Rica. The company also allows you to provide gaming services to gambling and casino clients.
Other benefits include Costa Rica is a great testing jurisdiction for cryptocurrency casinos. The government’s crypto-friendly and ‘hands-off’ approach to online gambling regulation make it the perfect place to test a concept before transferring to a licensed jurisdiction. Costa Rica is home to some crypto gaming companies and those who only want to accept crypto and digital currency payments.
Costa Rica gaming companies can also enjoy the following benefits:
Costa Rica Casinos Opening
Costa Rica Casino Hotels
Contact Fast Offshore
Fast Offshore has been working both in Costa Rica and in online gambling for over 23 years. During this time, we have amassed extensive hands-on knowledge in all matters related to setting up and maintaining an online gaming company. We can provide thorough advice and assistance with all corporate matters both in Costa Rica and in other jurisdictions. If you’re considering starting an online gaming company in Costa Rica or you want an online gambling license elsewhere, let us help you.
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2nd and subsequent years – All annual fees become due January 1st each year and are payable prior to January 31st.
The iGaming industry is not just big, but it is still continuously growing. Yearly statistics show that the revenues are climbing, inspiring widespread confidence that profits will remain healthy into the foreseeable future despite hurdles and problems like pandemics and economic instability. As a form of entertainment that has long enjoyed unflagging demand, online casinos and sportsbooks will always provide a worthwhile investment opportunity. It is also easy and effortless for the majority of the consumers given the fact that technology is constantly evolving requiring minimum effort by them.
Curacao E-Gaming License
The Curacao e-gaming license is one of the world's most popular e-gaming licenses. Due to its popularity, there are approximately four hundred fifty (450) online gambling operators licensed and operating within the jurisdiction. Back in 1993, Curacao created some of the first legislation in the world regulating the online gambling market. Three years later, in 1996, the government created the Gaming License Authority responsible for issuing the relevant licenses as well as supervising and monitoring the industry. By 2001, the Curacao Interest Gaming Association was created to ensure that all gaming operators were in line with the regulatory framework and the code of conduct.
Benefits of Curacao Gaming License
A primary question before perusing the Curacao gaming license is what are the benefits of having a gaming license in general. Firstly, it provides security since operators can operate their business without having to worry about any legal repercussions. Unlicensed casinos can be subject to heavy fines, especially if they are registered in a jurisdiction that regulates gambling. There is even a chance that the operators' representatives could spend time in prison. Eventually, the casino could get shut down by the authorities if it does not comply with the regulations of the jurisdiction where the company is seated. Secondly, it is easier to operate because most financial institutions require a license to be eligible to open an account with them. Also, a gaming license provides credibility and boosts a good reputation it grants the casino a significant amount of legitimacy in the players' eyes and contributes to the iGaming ecosystem, fighting stigmas and helping to create a just, trustworthy and transparent gaming industry. Finally, a license makes any online casino operations more appealing for software and payment service providers, many of whom refuse to cooperate with operators who do not have a license.
Attempting to run an online casino business without the proper license exposes the operators to a number of complicated and serious problems. Some operators decide that the costs of licensing and taxes are too high and seek to save money by operating without a license. However, while this may save some money in the short term, the costs of the consequences are far higher than any fees and taxes. In short, online casino licenses may present a significant up-front cost, but the financial effects of any fines and prison time will outweigh them in the long run.
Beyond the advantages of having a license in general, what makes specifically the Curacao gaming license so special?
Certainly, there are many benefits for the holder relating to the operation including corporate and fiscal incentives. Firstly, Curacao is perhaps the quickest, less-expensive, easiest and most accessible jurisdiction to get a gaming license from. It has a straightforward process plus an easy maintenance and it provides entrepreneurs with a great favorable opportunity to test their concept before tackling tougher licensing jurisdictions. There are still requirements that need to be met, but the amount of bureaucracy is limited and precious time is being saved. It also offers one license, regardless of the game type. Some of the activities that are covered by this license among others are:
- online casino games (roulette, blackjack, slots);
- sports betting peer to peer games (poker, backgammon, mah-jong);
- mobile phone games, betting;
- live dealing;
- bingo;
- fantasy football;
- various trading activity;
- pari-mutual and pool betting;
- network gaming;
- lotteries; and
However, the Curacao license strictly prohibits among others the following countries: Aruba, Bonaire, Curacao, France, Netherlands, Saba, Statia, St. Maarten, Singapore and USA.
Tax and other Incentives
One of the most significant and noteworthy advantages of obtaining a gaming license in Curacao is the low tax incentive. Τhe government of Curacao charges only 2% of the tax from the net profits of the online gambling businesses as well as 0% corporate income tax. This rate of tax is significantly lower than in many other jurisdictions and they do not create massive barriers for new iGaming industry entrants. There is also no sales tax, import duties, no tax on gross bets and no restrictions on the withdrawal of dividends. All income must be foreign sourced to benefit from the fiscal incentive and any applicable economic substance and or permanent establishment rules must be met. Despite being labelled as a “tax haven”, Curacao complies with the EU Code of Conduct against harmful tax practices. It is also a qualified intermediary from the IRS, an OECD jurisdiction, enforces CTF and AML compliance, and is a member of the Caribbean Financial Action Task Force on Money Laundering.
Furthermore, it allows the company obtaining the license to test the concept, get a license base and reinvest funds without having to pay a fortune in costly applications, taxes and fees. In other words, it supports holistic growth and allows the company to diversify into other markers segments, games and areas without taking a financial hit. All these benefits, combined with Curacao's strong financial service sector, well-developed telecommunications infrastructure and economic stability makes it the winning jurisdiction for iGaming startups from all over the world. It is also the home of several international, well-established gaming companies that have been operating there for many years, something which reflects that operations are stable.
EU-Cyprus Payment Processing Agent
Over the years, it has become very difficult for offshore companies in Curacao to accept online payments, due to the ongoing regulatory scrutiny and their consideration as ‘high risk'. Any operation will be limited by its ability to accept payments in some jurisdictions. Payment service providers often block card payments from jurisdictions where a local license is required. Given the fact that you need to accept payments on your website before people can start using these services, a payment processing agent is definitely required. A processing agent is a company that is part of the structure which processes payments for the website offering the online gaming services and receives a fee to satisfy any tax rules. The best jurisdiction to process with the incorporation of a processing agent, ideally should have a low tax rate and be eligible for access to a variety of credit-card payment providers. Considering the increased difficulties for Curacao entities to obtain bank account and/or merchant accounts in Europe, creating a structure which involves the Curacao company (which has the license to operate online gaming) and the payment processing agent (preferably an EU- Cyprus company) creates a powerful and strong foundation for the company's operations.
Our team will assist you to identify and set up the most suitable corporate structure, adjusted to your personal needs. We have a great experience in such activities and we can provide all the corporate vehicles and required licenses to effectively implement such structure. We also have a wide network of banks and payment processors and we will assist you with bank and merchant account opening.
Originally Published by Oxford Management, February 2021
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.