Online betting in Costa Rica is best described as a tolerated, largely unregulated grey area rather than a licensed-and-protected market. There is no dedicated online-gambling regulator, and the state Junta de Protección Social (JPS) holds the monopoly on domestic lottery and sanctioned sports betting. The famous ‘Costa Rica gambling licence’ is not a real gaming licence - operators simply register as ordinary or ‘data-processing’ companies under general commercial law and are meant not to target Costa Rican residents. That means locals who play offshore sites do so without any local consumer-protection safety net.

Costa Rica never built a modern online-gambling framework. Instead, offshore-facing sportsbooks, casinos and poker rooms established themselves from the late 1990s as ordinary businesses, often structured as ‘data-processing’ or business-process operations that keep wagering, payments and servers outside the country. The domestic side is different: the JPS is an autonomous state institution that runs the national lottery and sanctioned sports betting for residents, with proceeds funding social programmes.

In early 2026, the Legislative Assembly’s security commission rejected gambling-reform Bill 25.057, which would have created a formal licensing and oversight regime. Lawmakers have since filed a successor initiative, file 25.600 (‘Strengthening and Modernisation of the JPS’), which would turn the JPS into the sole regulator of games of chance - but as of 2026 no dedicated online-gambling regulator exists.

Licensed vs offshore: know the difference

FeatureJPS (domestic)‘Data-processing’ offshore operators
AuthorityState institution (JPS)Municipal commercial certificate
Gaming-regulator oversightYes (state monopoly)None
May target CR residentsYesNo (not intended for locals)
Player-protection guaranteesState-backedNone locally

The key takeaway: a site advertising a ‘Costa Rica licence’ has not been vetted for game fairness, segregation of funds or dispute resolution the way an MGA or UKGC licensee would be.

Payment methods locals use

Because there is no regulated domestic online market, payment habits are informal. Commonly used rails include:

  • Local bank cards and transfers (Visa/Mastercard via Costa Rican banks) - though banks can be cautious about gambling-coded transactions.
  • SINPE Móvil, Costa Rica’s popular instant mobile-transfer system, for peer and merchant payments generally.
  • E-wallets and international processors.
  • Cryptocurrency, used on crypto-focused sites to sidestep card declines.

Remember that offshore operators are not supposed to use the local banking system to serve residents, so payment friction is common by design.

Crypto gambling status

Crypto occupies its own grey zone. The Central Bank of Costa Rica (BCCR) has stated that cryptoassets are not legal tender, have no state backing and sit outside the national banking system. Crucially, private crypto use is not banned - you can legally buy, sell and hold it. That gap is why crypto casinos operate freely, but with zero local recourse. Pending Bill 22.837, which passed its first debate in July 2025, would require Virtual Asset Service Providers to register with SUGEF and follow anti-money-laundering rules.

Tax on winnings

For individuals, gambling and lottery winnings are generally not treated as taxable income in Costa Rica, and a 2020 proposal to tax lottery prizes was archived by the legislature in 2022. Costa Rica taxes largely on a territorial basis. This is general information only - always confirm with a qualified Costa Rican tax adviser.

Safer gambling and getting help

Because offshore and crypto sites carry no local player protection, self-discipline matters. Set deposit and time limits, never chase losses, and treat gambling as entertainment, not income. Costa Rica does not run a dedicated gambling helpline, but IAFA (Instituto sobre Alcoholismo y Farmacodependencia) operates a free national orientation line at 800-4232-800 (800-IAFA-800) for addiction and substance-related problems and can point people toward help.

18+ only. Gambling can be addictive - please play responsibly. If it stops being fun, call IAFA on 800-4232-800.

Sources