The benefits of operating a gaming company from Costa Rica

In this article, iGaming consultant Ron Mendelson, Fast Offshore, explores the key benefits of operating a gaming company from Costa Rica and why it continues attracting businesses worldwide.

Costa Rica has emerged as one of the most popular jurisdictions for gaming companies looking to establish their operations in a stable and business-friendly environment. Located in Central America, Costa Rica boasts a combination of favourable legal frameworks, an attractive tax regime, and a robust infrastructure, making it an ideal base for iGaming operators.

1. No specific online gambling legislation

One of the most significant advantages of operating an online gaming company in Costa Rica is the absence of specific online gambling laws. Unlike other countries where obtaining a gambling license is mandatory and often involves complex processes and high fees, Costa Rica does not require gaming operators to obtain a formal gambling license.

Instead, companies can open a Costa Rica company and specify the object as iGaming, which allows them to provide gaming services as long as their activities are directed at players outside Costa Rica. This unique situation has enabled many gaming businesses to set up shop in the country quickly and with fewer regulatory hurdles. 

Advantages of a Costa Rica gaming company

• No gaming-specific regulatory requirements.

• Lower costs compared to traditional gambling licenses.

• Quicker and easier to obtain, allowing for fast setup of operations.

This regulatory flexibility makes Costa Rica particularly attractive for startups or companies that want to test the waters in the iGaming industry before committing to a more costly or regulated jurisdiction.

2. Tax efficiency

Costa Rica is a tax-friendly environment for gaming companies. The country operates under a territorial tax system, meaning that only income generated within Costa Rica is subject to local taxation. Since online gaming companies typically serve international markets, their revenue generated outside the country is exempt from Costa Rican income taxes.

This system creates significant tax advantages for gaming operators, allowing them to retain more profits than companies based in high-tax jurisdictions. 

3. Skilled workforce and talent availability

Costa Rica boasts a highly educated and skilled workforce, making it an ideal location for gaming companies seeking employees with technical, operational, and customer service expertise. The country is home to many professionals with strong backgrounds in technology, software development, cybersecurity, and customer support—all essential areas for a successful gaming operation. The government invests heavily in technical education programs and partnerships with international businesses, ensuring a steady stream of talent in relevant industries.

By establishing operations in Costa Rica, gaming companies gain access to a talented workforce that can help drive innovation, efficiency, and high levels of customer satisfaction. 

4. Stable political and economic environment

Costa Rica is known for its political stability, making it one of the safest countries in Central America for international businesses. The country has a well-functioning democracy with strong institutions, rule of law, and a history of peaceful transitions of power. For gaming operators, this means minimal risk of political instability or sudden changes in regulations that could jeopardise business operations.

Moreover, Costa Rica has experienced consistent economic growth over the past few decades. Its economy is diversified, with sectors such as technology, tourism, and financial services playing significant roles. The presence of large multinational companies further reinforces Costa Rica's reputation as a stable and business-friendly destination.

Operating in a stable and predictable environment allows gaming companies to focus on growth and innovation rather than worrying about political risks or unexpected regulatory changes. This level of security is a major draw for businesses looking for long-term investment opportunities.

5. Advanced telecommunications and technological infrastructure

Costa Rica has invested heavily in its telecommunications and technological infrastructure, making it a regional leader in internet connectivity and data services. For online gaming companies, having reliable and fast internet is crucial, as the nature of the business relies on real-time transactions, secure data transfers, and seamless customer experiences. As a result, Costa Rica provides the essential infrastructure to support both small and large-scale gaming operations.

6. Time zone alignment with major markets

One practical benefit of operating a gaming company from Costa Rica is its time zone alignment with major markets, particularly the United States and Canada. Costa Rica operates in Central Standard Time (CST), which is equivalent to or slightly different from many North American cities, depending on the time of year.

7. Favorable business environment and free trade zones

Costa Rica has cultivated a reputation as a pro-business environment, mainly through its Free Trade Zones (FTZs), which offer a variety of incentives for companies to establish their operations within the country. These free trade zones provide significant financial incentives, making Costa Rica even more appealing for gaming companies looking to reduce overhead costs and reinvest savings into business growth and development.

8. Strong legal protections for intellectual property

Protecting intellectual property (IP) is crucial for gaming companies that rely on proprietary software, games, and platforms. Costa Rica offers robust legal protections for IP, ensuring that gaming operators can safeguard their assets from infringement or theft.

Conclusion

Costa Rica offers a unique combination of benefits for gaming companies, from its lack of specific online gambling regulations and favorable tax regime to its skilled workforce, stable political environment, and advanced technological infrastructure. These factors, combined with its strategic location and pro-business policies, make Costa Rica a prime destination for gaming operators looking to establish or expand their operations.

If you are interested in establishing an iGaming company in Costa Rica, Fast Offshore is here to help. We have over 27 years of experience in iGaming, including in Costa Rica and we are ready to help. Contact us today.