Costa Rica as offshore base for online gambling

Costa Rica has long appeared on the iGaming map as an "easy" entry point: there is formally no classic license for online casinos, and operators have traditionally worked through the data processing model. This approach has made the country popular with startups and small brands that value low launch costs, flexible requirements and fast deployment. Below is a detailed analysis of how it works, what are the pros and cons of the jurisdiction, and who it suits in 2025.

1) Jurisdiction and legal status

There is no separate "online casino license." Historically, companies have registered as data processing/software service providers and conducted B2C activities outside Costa Rica.

Focus on extraterritoriality. The key principle: do not target players within the country and comply with the laws of those markets where you really operate.

Minimum industry oversight. The absence of a specialized regulatory body means less formalities - and less external "legitimacy" for banks/payment providers.

2) How the "data processing" model works

Company registration (S.A. or S.R.L.). Establishment of a legal entity, appointment of directors/agents, basic corporate procedures.

Contractual construction. A legal entity in Costa Rica is positioned as a technological and operational center: hosting, support, risk management, backfix.

B2C product outside Costa Rica. The site/application is targeted at foreign markets; domains and CDNs can be located globally.

Key nuance. The lack of a "license" saves money and time, but complicates access to the payment infrastructure, where licensing jurisdiction is often required.

3) Taxes and costs

Flexible tax burden. Standard corporate regimes without special "gambling taxes"; the actual load depends on the group structure and sources of income.

Low starting costs. Registration, address, corporate services and compliance are cheaper than in "full" licensing centers.

Savings on checks. There are no expensive certifications and annual audits required in a number of regulated jurisdictions.

4) Infrastructure, personnel and operating system

Technical base. Reliable data centers, cybersecurity providers, developers, support centers in Spanish/English are available.

Time zone and language. Convenient for Latin America and US markets; English is spoken in the business environment.

Offshore hubs nearby. The regional ecosystem (payment processors, call centers, KYC providers) allows you to build hybrid chains.

5) Banking and payment solutions: where is the bottleneck

No license = more questions. Banks and MPS (merchant payment services) often require licensing paper; without it, the account/acquiring is more difficult to agree.

Solutions:

• removal of the payment circuit to other jurisdictions;
• work through aggregators/PSPs that accept offshore iGaming risks;
• emphasis on alternative methods (A2A, vouchers, crypto processing) - taking into account AML/KYC.
• Card schemes. High risk scoring, high commissions and frequent requests for documents are possible.

6) Reputation and Marketing: Light and Dark Sides

Plus: Fast start, flexibility, low barriers.

Minus: Mistrust on the part of partners, platforms and the media: "not licensed" sounds worse than "licensed in X."

Conclusion: For a long-term brand, a two-stage strategy is often used - starting from Costa Rica, then migrating/adding a license (Curacao, Malta, Alderney, Maine, etc.) as it grows.

7) Comparison with alternatives (brief)

Curaçao. Fast and affordable, but now more formal requirements; yet this is precisely the licensing jurisdiction - easier with the PSP.

Panama/Colombia. Regional models with licenses, but more expensive and longer.

Malta/Isle of Man/Gibraltar. The highest "legitimacy" and access to the payment ecosystem, but the most stringent requirements and budget.

Costa Rica. Minimum barriers and costs, maximum flexibility, but without a license stamp and with consequences for payments and reputation.

8) Who Costa Rica suits

Startups and MVP projects. Test hypotheses quickly without freezing capital on licenses.

B2B providers. P&D, development, affiliate marketing, support, risk analytics.

Niche LATAM brands. Local languages, marketing in the region, omnichannel.

9) Main risks and mitigation measures

Payment infrastructure. Build a multi-jurisdictional scheme, test on-/off-ramp in advance, keep spare PSPs.

Legal extraterritoriality. Strictly filter GEO, block prohibited markets, apply geo-compliance and age-/ID-verification.

Money laundering and fraud. Implement KYC/AML procedures, transaction monitoring, limits, behavioral analytics.

Reputation. Transparent T&C, responsible play, external information security/integrity audit reports (where appropriate), RNG certification from independent laboratories.

10) Costa Rica launch checklist

1. Establish a legal entity (S.A./S. R.L.), register address and agents.

2. Draw up a model of activity: development/data processing/outsourcing agreements.

3. Build geo-compliance and market filtering (block lists, KYC/AML).

4. Segment the payment loop: main/reserve schemes, alternative methods, crypto-processing by risk policy.

5. Configure information security: DDoS protection, WAF, anti-fraud, monitoring.

6. Think about PR/partnerships: emphasize transparency, RTP certificates, Responsible Gambling.

7. Plan a 6-18 month "licensing ladder" as it grows.

11) FAQ (short)

Can this be called a "license"? It is more correct to talk about the registration of the company and the "data processing" model, and not about the gambling license.

Will there be problems with banks? Possible; prepare documents, reserve providers and consider payment hubs in other countries.

Is it good for big brands? As a launch platform - yes; for scaling, licensing jurisdiction is almost always added.

Is it easy to scale to Latin America? Yes, due to language, time zones and marketing channels, but follow the local laws of the target countries.

Bottom line. Costa Rica is not a "license," but a pragmatic offshore tool for quickly logging into iGaming. It wins in price and speed, but loses in the "sign of quality" and the availability of payment infrastructure. The best approach is to use the country as a starting base, while building compliance and preparing the transition to a formal license as the brand grows.