Online casinos operate in a unique legal gray area in Costa Rica, where there is no formal gambling license or regulatory framework specifically for online gaming activities. Physical casinos are regulated under Law No. 9050, which assigns licensing and supervision responsibilities to the Ministry of Public Security, but these venues are only permitted on hotel premises (1). The Junta de Protección Social (JPS) holds a legal monopoly over most forms of gambling under Law No. 8718, including lotteries and sports betting, though online gaming services for Costa Rican residents remain unauthorized and unregulated.
Despite the absence of specific online gambling legislation, hundreds of gaming companies operate from Costa Rica by registering as regular corporations and obtaining data processing licenses rather than gambling-specific permits. These companies are legally prohibited from offering services to Costa Rican residents and must block local IP addresses, but they can provide online casino services to international customers (2). Under Costa Rican law, the location of online gambling is determined by where players are located, not where the operator is based, allowing companies to operate from within the country as long as they serve only foreign markets.
"There is currently no formal legal framework in Costa Rica that allows companies to operate online gambling or sports betting targeted at Costa Rican citizens" (1).
This regulatory approach has made Costa Rica a popular jurisdiction for international online casino operators seeking lower operational costs and minimal regulatory oversight. Companies can establish gaming businesses by simply registering a corporation and obtaining basic data processing authorization, with no gambling-specific licensing fees or mandatory software testing requirements (2). However, this lack of formal regulation also means limited player protection measures and challenges with traditional payment processors, leading many operators to rely on cryptocurrency transactions. While the current framework allows legal operation for international markets, Costa Rican authorities continue to strictly prohibit gambling services targeted at domestic residents.
Source:
https://www.gamblinginsider.com/magazine/1182/costa-rica-effective-regulation-is-the-industrys-path-forward
https://lcb.org/restrictions/costa-rica
Last updated: 24-07-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.