Live casinos that are licensed in Costa Rica

Is gambling in Costa Rica legal?

In Costa Rica, Internet gambling businesses are legal as long as the money being bet from abroad is not deposited in a Costa Rica bank account. The regulation atmosphere in the country was notoriously lax until recent years and it is still one of the more lenient in the world. Without character checks for online operators, entities like the Sicilian Mafia have been able to infiltrate the electronic gambling arena.

Electronic gambling includes sportsbooks where employees take telephone and computer bets worldwide. It also includes electronic casinos, which could be low budget establishments that operate from a motel room near the airport. Gamblers maintain money in offshore accounts, so the money wagered never reaches the country and is beyond the control of national taxes. All of this creates a nice situation when things are running smoothly but in the case of a dispute, can present many problems.

What is the regulating organization in Costa Rica jurisdiction?

Under proposed legislation that was not passed, the Ministerio de Economia, Industria y Comerciao would have been responsible for licensing, taxation, and electronic registry. Some online casinos in the country claimed to have a license with the Costa Rican Gaming Commission or another organization that sounds just as official. These are false claims, as there are no such entities. In essence, aside from a licensing requirement regulated by the government, there is no regulation at all, let alone a regulating organization.

What are the laws and legal system pertaining to Costa Rica gambling?

Government officials acknowledge unregulated money flows to be an issue and the government is working on additional oversight. Many of the companies are registered as call centers, software companies, or data processing firms. These are subject to few taxes and no special licensing fees. Only an online gaming license from the government is required to establish Internet gambling servers. Due to offshore handling of the money, online gambling operations do not pay taxes on earnings in Costa Rica.

Companies registered on Costa Rican soil are banned from promoting their gambling sites, including online casinos, to their own citizens. By preventing its own citizens from partaking in online gambling, Costa Rica eliminates the need to deal with social issues or other problems related to online gambling. At the same time, the jurisdiction can generate additional income through fees and taxes.

As of 2003, online gambling operations in Costa Rica were required to register with the economy ministry and pay a tax of $26,000 to $63,000, dependent on number of employees. In June 2003, a licensing fee was proposed. A 2004 proposed tax reform bill included a permanent tax on online gambling firms and casinos and efforts to improve tax collection methods. However, these were unsuccessful and currently, there are no real laws for online gaming. In 2010, discussions began regarding a two percent tax on gambling activities.

What are the licensing requirements for a website to use Costa Rica as its base of operations?

Currently, the only requirement is that the online gaming establishment obtains an online gaming license through the government. The Costa Rican corporation and license cost is $15,000, with an additional payment of $1,500 due every three months to keep it in force. Some gaming companies apply for a data processing license, though this is not required.

Is there any customer dispute legislation for Costa Rica gambling?

The process for complaint and dispute resolution is non-existent. There is no central governing body responsible for handling customer complaints. Online Costa Rican gaming companies govern themselves, so players deal with the individual operator when they have a dispute or complaint. In the government’s eyes, the wager is placed where the player sits, not where the Web site is being hosted.

Who do I contact if I have a problem with a casino in this jurisdiction?

When players have a complaint or dispute, they must deal with the individual online gaming operator. Therefore, it is recommended that they do some in-depth research prior to investing any money at an online casino that operates from Costa Rica. Proceeding with caution is advised due to the unregulated nature of the industry within this country.

What should I look for in a gambling website operating out of Costa Rica?

Potential customers should look for gaming sites that have voluntarily joined regulatory sites designed to monitor their actions. The most reputable online gaming operations will do this, providing customers with some peace of mind. There are currently over 300 online gaming companies within the country and the majority of them are fly by night. Look for companies that have a longstanding reputation within the industry, and audited payouts and software. Make sure the entity has an active and authentic Costa Rican online gaming license.