Could you give me a brief overview of what gambling regulation looks like in Costa Rica at the moment?
Physical gambling
Let’s start with a look at the current framework for physical gambling in Costa Rica. Activities like casinos are regulated under Law No. 9050 – Ley sobre el Impuesto a Casinos y Empresas de Enlace de Llamadas a Apuestas Electrónicas. This law was introduced to regulate long-standing gambling activities in the country. It assigns the responsibility of licensing, overseeing and supervising operations to the Ministry of Public Security – for both casinos and companies offering related services.
Physical casinos are authorised to operate as complementary services to the national hotel industry. They are also required to comply with tax obligations established by law. This legislation has been in force since its publication in the Official Gazette, issued by the Office of the Presidency of the Republic on 27 July 2015.
Online gambling
Although Costa Rica does not have a formal regulatory framework for online gambling, companies can obtain a Data Processing License – which is not a regulatory gambling licence per se. These licences are granted at the municipal level and permit companies to operate as long as their services target users outside Costa Rica. They do not explicitly authorise online sports betting or casino activities aimed at Costa Rican residents.This legal and tax framework has enabled many international companies to establish operations in Costa Rica, generating significant employment in the process.
So, there are no laws and regulations for online gaming in Costa Rica and online gaming activities cannot be specifically licensed. But what has held Costa Rica back from regulating online gaming?
As I summarised earlier, 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, outside of physical casinos and the national lottery.
The Junta de Protección Social (JPS) – www.jps.go.cr – is the only entity that could, under Law No. 8718, regulate or authorise operators to provide online gaming services to locals or residents. However, doing so would require the creation and implementation of formal regulations and a national bidding process after enabling Regulation 100.
As I often say at industry conferences: A regulation must be balanced
While an unregulated gaming market will always present problems in terms of player protection, are there any factors that are unique to Costa Rica?
Not particularly. Like in any unregulated environment, users face significant risks. Without government oversight or legal guarantees, players are vulnerable – whether they play on reputable international platforms or shady websites. The most common issues include funds being withheld, disputes over payouts or the misuse of personal data.
In such cases, Costa Rica’s consumer protection laws – Law 7472 (Consumer Protection) and Law 8968 (Personal Data Protection) – cannot intervene, as these platforms fall outside national jurisdiction. That’s why I always recommend players carefully verify the legitimacy of the site before engaging. Gambling should be a form of entertainment, and a poor experience can be avoided by taking proper precautions.
Brazil has recently regulated online gaming. Do you think this may encourage change in Costa Rica?
Yes – and I believe it should. I’ve personally been involved in the Brazilian regulatory process since 2017. It’s been a long journey but, by 2024 the process began, and by 2025 the first companies are expected to be fully authorised.
This has meant restructuring operations to meet compliance standards – something normal in regulated markets, as it is crucial for user protection and legitimacy.
Some areas still need refining in Brazil, such as site blocking and payment processor oversight, but progress is being made through collaboration between operators and the regulator. I currently serve as CEO of Betsul.bet.br, a regulated brand in Brazil, and I can say the outlook is positive.
Costa Rica, while much smaller, would benefit significantly from regulation, both in tax revenue and job creation. I know that the JPS has been working toward regulation, especially since the market is currently filled with grey area operators. That said, any meaningful change will require political will and structural support, not just the efforts of the JPS.
Gaming isn’t usually a political priority but, from my perspective, regulation is the path forward – for the benefit of the country, companies and the many Costa Ricans already working in this sector.
More broadly, several nations in Latin America are in the process of regulating their online gaming markets. What do you think has fuelled this change?
- Multiple positive factors are driving the change:
- Tax benefits for the state
- Stronger player protection
- Formal job creation, both direct and indirect.
- Technological development – especially in countries like Costa Rica, which is a regional tech hub.
Many people underestimate what goes into running an online gaming operation. It’s not just launching a website – it involves legal, financial, technological, marketing and compliance areas.
Regulation allows countries to capture the full economic value of this complex industry
What do you expect Costa Rica’s gaming market to look like in the next five years?
If everything moves in a positive direction, change is both possible and necessary. We’ve already seen how some companies operating from Costa Rica have shut down or moved as other countries like the US began regulating. A new regulatory framework would encourage foreign investment and support the large community of Costa Ricans already working in gaming – from software engineers, lawyers and marketers to AI specialists and accountants.
If regulation does not move forward, Costa Rica will likely see more operations of questionable legality, which will ultimately harm local consumers. That’s why I believe the Government should at least initiate a regulation process, even if it’s selective. Costa Rica is a small market, and a responsible approach should limit the number of licensed operators to reflect that.
