Legalization Online (Nicaragua)

Prospects for legalizing online gambling (Nicaragua)

1) Starting point: where are we now

The legal framework covers offline. In Nicaragua, casinos and halls are regulated in detail (Ley Nº 766 + Regulation Decree No. 06-2015), supervision by the MHCP through the Casino Office. There is no direct procedure for private online B2C operators.

The control circuit is financial. Ley 977 (with a major update in September 2024) has expanded AML/CFT obligations for "obligated entities" and enhanced identification/reporting requirements.

Conclusion: on date 09. 10. 2025 online market is de facto "out of permission," and control is shifted towards payments and AML, not licenses. This is the starting point for reform.

2) Regional benchmarks: What to learn from neighbors/leaders

Colombia. Full Coljuegos license for online since 2016; active supervision, blocking illegal immigrants. This is the most "well-functioning" model in the region.

Brazil. Lei 14 joined. 790/2023: federal authorization for fixed rates, tight advertising rules, AML and fees; in 2024-2025 there is an active establishment of order and blocking of unregulated sites.

Peru. Accepted Ley 31557 (mod. Ley 31806) + Regulation DS 005-2023-MINCETUR: single mode for distance games/bets under MINCETUR.

Panama. JCJ's historically mature offline oversight; there are separate acts on online activities and regulations.

How it helps Nicaragua: There are ready-made "matrices" of norms (license/taxes/advertising/player protection) that can be adapted instead of writing "from scratch."

3) What legalization will give (pluses) and what interferes (minuses)

Pros:

Budget revenues (GGR tax + license fees) and "whitewashing" of payments. The experience of Brazil/Colombia shows that the fiscal potential is noticeable with state supervision and blocking of illegal immigrants.
Consumer protection: licensed operators, responsible play rules, complaint/ADR channels.
AML/advertising control: moving operations from the gray zone to Ley 977 requirements and specialized standards, like the leaders of the region.

Cons/Barriers:

Administrative resource. Personnel/IT systems will be needed in the MNS/profile office.
Social agenda. Game addiction and advertising concerns (see discussions in Brazil).
Payment infrastructure. We need clear rules for/e-wallet/crypto and KYC cards. (The experience of MINCETUR/Coljuegos shows the importance of clear schemes).

4) Scenarios for 2-4 years

S0 - status quo (average probability): offline remains as it is, online - "offshore + AML."

S1 - point "sports" legalization (12-24 months): a quick start with sports betting, then adding casino content; path of Brazil.

S2 - full mode (18-36 months): "online chapter" for Ley 766 + by-law: registry, B2C/B2B licenses, GGR tax, RG, advertising, payment rules - modeled on Coljuegos/MINCETUR.

5) Reform roadmap (practical layout)

1. Legislative bloc.

Add to Ley 766 a separate online chapter with definitions (remote games, bets, platform, supplier), MNSR/Casino Office competencies, B2C/B2B license categories, registries and grounds for sanctions.

2. Taxes/payments.

Tax option - on GGR (as in Colombia/Peru) + fixed license fees; register retention agents, reporting, control.

3. AML/KYC & RG.

Implement online Ley 977 standards: KYC, behavioral monitoring, deposit limits, self-exclusion, age 18 +, credit bans for bets (benchmark - Brazil).

4. Advertising and protecting the vulnerable.

Hours/advertising channels, clear disclaimers, prohibition to target minors/social benefits; norms of responsibility of sports sponsors.

5. Technology and control.

RNG/platform certification, log storage, mandatory reports, centralized monitoring option (like Coljuegos).

6. Execution.

ISP blocking and payment ban procedures for unlicensed domains; a public "white list" of licensees. (Colombia/Brazil/Panama approaches.)

7. Transition period.

"Amnesty for entry": 6-12 months to submit applications, after - increased blocking.

8. Members.

Consultations with banks/payment providers, telecoms, operators, NGOs RG and sports leagues - to "glue" the payment/social architecture.

6) What license regime looks like working for Nicaragua

Categories:

B2C operator (sports, casino, poker/bingo - modular) and B2B provider (platform, content, PSP).
Requirements: "fit & proper," transparency of beneficiaries, capital/guarantees, technical certification, local contact/representative. (Landmark - Colombia/Peru; for Nicaragua, it is realistic to scale.)
Finance: GGR tax + annual supervision fee/RG fund; transactional reporting window (day/week/month).
Protection of players: self-exclusion (single list), limits on deposits/time, mandatory pauses, complaint channels/ADRs under the Ministry of Health and Social Development/professional office.

7) Risks at the "halfway" and how to neutralize them

Too soft advertising rules → social. criticism. Solution: clear "watersheds" for sponsorship and age-gating.

Lack of inspectors/analysts. Solution: outsourcing certification, centralized reporting, risk-based oversight.

Payment "bottlenecks." Solution: joint MHCP + banks/PSP guidelines on onshore-KYC and source of funds.

8) Mini-FAQ

Can I run "betting only" and casino later?

Yes - this is what Brazil did: faster politically and operationally, then the verticals are "adjusted."

How to deal with illegal immigrants after launch?

Combo: "whitelist" + domain/payment locks + public sanctions cases (see Colombia/Brazil).

Where to "file" online in the current law?

In Ley 766 with online in a separate chapter and indicating that the MNSR/Casino Office is "autoridad de aplicación" for distance games.

Legalization of online in Nicaragua is a realistic project for 18-36 months, if you choose ready-made regional "matrices" (Coljuegos, MINCETUR) and immediately embed AML/RG hardness (Ley 977) into electronic channels. The greatest chance of success is given by phase launch from rates, GGR tax, B2C/B2B licenses, centralized monitoring and clear advertising/payment rules. Otherwise, the country will continue to "feed" the offshore - without budget revenues and with minimal player protection.

Relevant for October 09, 2025.