Gambling Laws in Costa Rica
In 2010, Costa Rica’s government passed a law barring citizens from gambling in land-based casinos. The review also says Costa Ricans are prohibited from wagering on online gaming sites licensed in Costa Rica.
Despite those restrictions, land-based casinos continue to operate in the country. Hotel casinos are a significant part of its tourism industry and attract many visitors from abroad. Costa Rica is also described as a centre for online gaming: gambling is treated as taking place where players are, rather than where servers are located. On that basis, operators seeking a Costa Rican licence must block IP addresses originating in the country.
Apart from excluding Costa Rican players, the review describes few conditions for obtaining a gambling licence. It says limited supervision has made the country an appealing base for rogue operators in recent years.
Obtaining a Costa Rican Gambling License
Costa Rica has no dedicated Gambling Authority. Applicants instead seek a data processing licence through San Jose city hall, a process that requires a physical presence in the country. The review describes rogue sites setting up there while marketing their services internationally.
Licence charges depend partly on the size of the operation, with an additional fee due each quarter. The review says the government provides no further oversight as long as licensees keep paying those charges.
The review also cites Costa Rica’s tax treatment as an attraction for rogue casinos. It says corporations pay no tax there on income earned abroad. Since Costa Ricans are barred, gaming sites reportedly pay no tax on money earned from overseas players.
Obtaining a data processing licence involves a short application process. The review says many operators could be ready to launch in as little as one month, compared with several months or longer in other gambling jurisdictions. It presents this faster setup as another attraction for operators with a poor reputation.
Player Complaints
Players who have a dispute with a casino holding a “licensed” Costa Rican operation have limited options. The review describes no official gambling regulator responsible for online casino complaints, leaving customers to raise issues with the casino itself, with uncertain results.
The review also identifies possible information gaps: Costa Rica does not require independent software testing or set best practices for safeguarding player funds. Casinos do not have to publish RTP percentages, odds tables or other details that could help players decide how much to wager.
Relationship to U.S. Players
The review recounts that in 2006, the United States enacted the Unlawful Internet Gambling Enforcement Act (UIGEA), which barred U.S. banks from processing online gaming transactions. It says many casinos responded by blocking American IP addresses. Costa Rican gaming sites later used Bitcoin and other cryptocurrencies to attract some U.S. players who might otherwise have had less access to online gambling.
Proposed Legislation
In 2013, a bill was proposed to create an official gambling control board in Costa Rica. The proposal would have:
- Raised licensing fees
- Required online casinos to pay tax calculated on gross income
- Added a tax intended to deter criminal activity
The proposal had not advanced at the time of the review. It therefore described Costa Rican gaming sites as operating without regulatory requirements or player protections.
Conclusion
The review does not suggest that every casino with a Costa Rican licence is dishonest. It warns, however, that limited oversight and player advocacy can make the jurisdiction attractive to rogue operators. Its advice is to research a gaming site carefully by reading reviews and checking for licences from other jurisdictions.
If a casino holds only a Costa Rican licence, the review urges players to be especially cautious. It says there may be little recourse after mistreatment and advises wagering only money they can afford to lose.
