Impact of offshore licensing on the economy (Costa Rica)

Costa Rica is not a classic "licensing" jurisdiction for online: instead of an industry license, an offshore operating model has taken root here. Gambling companies are registered as "data processing companies," keep offices, support, risk analytics, DevOps and BI in the country, and place B2C law, acquiring and licenses themselves in other jurisdictions. This is already part of the economic landscape: the model brings jobs and exports of services, but requires fine-tuning so as not to slow down the country's finances and image.

1) Where the economic effect is born

Export of services and foreign exchange earnings

iGaming operating centers sell services abroad (support, IT, anti-fraud, hosting, content management), forming a stable inflow of currency.

Due to the time zone and English-speaking environment, San Jose competes with the Caribbean and North Latin America for BPO/ITES contracts.

Employment and human capital

Direct jobs: support 24/7, risk analysts, AML officers, engineers, designers, content producers.

Indirect Employment: Law Firms, Accounting, Cybersecurity, Telecom, Cloud, Recruiting, Real Estate

Competence upgrade: iGaming "school" cadres strengthen fintech, e-commerce and creative industries.

Taxes and fees

Companies pay corporate taxes under the general regime, IVA for local services, municipal fees; salaries form the social insurance base.

Free Zone Mode (FTZ) when performing investment/employment KPIs stimulates the inflow of high value-added projects.

Tourism and urban economy

Offline, the hotel-casino bundle increases hotel TRevPAR, smoothes seasonality and supports the evening economy (F&B, taxi, entertainment).

2) Why exactly "offshore" architecture works for Costa Rica

Low entry barriers and short time-to-market for operational headquarters.

Flexibility of corporate structures: B2C risks (advertising, payments, license) are carried out in jurisdictions where it is economically optimal; in Costa Rica - people, processes and technologies.

Network effects: the density of industry services (risk tools, BI, content, localization) reduces the cost of launching new projects.

3) Downside: costs and tight necks

Payment rails

The lack of a local online license complicates card acquiring and access to top PSPs; the unit cost of transactions is growing.

There is a dependence on cryptocurrencies and alternative methods: this speeds up calculations, but adds volatility and requirements to AML/chain analytics.

Reputation and compliance

"CR-operating system without a license" is perceived by partners as a more risky profile, which leads to additional checks, reserves and SLA delays.

For domestic consumers, there are no protection standards (ADR, centralized RG), which periodically causes media risks.

Leak of "licensed" finished value

The "license stamp" and part of the B2C margin "live" abroad: the country receives operating taxes and salaries, but loses its licensed rent.

4) Benefit-risk balance: economic matrix

Indicator	Impact on the economy
Export of services	Plus: stable foreign exchange earnings
Employment/Salaries	Plus: the growth of the IT/BPO labor market
Taxes/FTZ Investments	Plus if KPIs are met
Payments/Finance	Minus/Risk: acquiring is more expensive, dependence on alternatives
Reputation	Minus/Risk: "gray" image of the online segment
Innovation (IS/fintech)	Plus: demand for SOC, antifraud, KYC/AML
Licensed annuity	Minus: goes to external jurisdictions

5) Scenarios for 3-5 years

A) Status quo (most likely)

Saving the model "operating system in CR + license abroad."

Strengthening crypto/A2A payments and multi-cash desk (several PSP/networks).

Voluntary standardization of RG/ADR by major players to reduce payment risk.

B) "Light frame" for online

Entering minimum requirements without a "heavy" license: RG tools, transparent payments (SLA), basic certification of honesty, external ADR.

Effect: reducing the payment margin, increasing partner confidence and "whitewashing" the image while maintaining speed.

C) Full license (unlikely short term)

Move to issuing online licenses with full oversight.

Effect: growth of licensed rent and banking accessibility, but longer "time-to-market" and higher administrative costs.

6) What the state should do (pragmatic checklist)

1. Mini-standards of protection without drastic reform:

mandatory RG tools (limits, self-exclusion), basic content certification/RNG, ADR/ombudsman with response times, transparent advertising and bonus rules.

2. Payment diplomacy: working groups with banks/card schemes/fintechs → white lists of providers with an increased level of compliance.

3. Personnel and upskilling: grants/courses in AML, sanctions compliance, chain analytics, cybersecurity, payment engineering.

4. FTZ-point setting: additional incentives for service centers with high salaries/clouds/information security, revealing local multipliers.

5. Transparent industry statistics: aggregated data on employment, taxation, export of services - to reduce reputational risks and policy planning.

7) What business should do (to make the economy win)

Multi-ticket office: cards + crypto (ECN/stables) + A2A; automatic failover and public withdrawal SLAs.

Voluntary "quasi-regulatory" package: RG, certification of games, segregation of client funds (or guarantee deposits), external ADR.

Transparency: publish payment metrics and claim responses (bringing practice closer to licensed markets).

Investments in information security: SOC 24/7, pentests, PD tokenization, incident response plan - this increases the confidence of payment partners.

Local value chains: more purchases from Costa Rican providers (clouds, information security, training) → a multiplier within the country.

8) Short takeaways for economists and policymakers

The offshore operating model is already bringing tangible benefits to Costa Rica: export of services, employment, growth of fintech/information security competencies and the hotel and restaurant sector.

The main bottlenecks are payments and the reputation of the online segment.

A rational "light frame" can increase market confidence and reduce transaction costs without losing the speed and flexibility that made a country attractive.

The strategic goal is to turn the offshore harbor into a quality service center with predictable rules and a focus on exporting knowledge.

Bottom line. The impact of offshore licensing on Costa Rica's economy is a trade-off between flexibility and legitimacy. Today, the model accelerates service exports and employment, but pays a "risk tax" in payments and reputation. Moderate adjustment of rules (RG, ADR, transparent payments, personnel) can maintain entrepreneurial speed and at the same time improve the quality and sustainability of the economic effect for the country.