Bitcoin gambling license

doraemon4k

New Member
Hi everyone
I am creating a web casino that only operates with cryptocurrencies, I need information on how I can do this legally, the problem is that my budget is very small, I have been looking at licenses in Costa Rica around 4.000 $, then I saw in some forums that in Costa Rica does not need a license, so I am a little lost in this matter, would someone with experience know how to guide me in this matter?

thanks
 

Sols

Trusted Member
Business Angel
It's true you don't need a license in Costa Rica (more precisely, there are no licenses and no local laws on the matter), but if you plan to take customers from jurisdictions where gambling is regulated (which is most of them by now), you should also have local license for each country. It used to be that serious gambling companies would get a license in Malta and that was enough for most of the world but nowadays these companies also need to get a local license in every EU country, US state, and so on.

However, there are thousands of gambling websites that avoid that regulation and operate in the grey zone (or entirely black), through offshore licenses.

Your options are to find someone who offers a whitelabel solution where you piggyback on their licenses (not realistic with a tiny budget), obtain an offshore license (ie Curaçao, Antigua, or Kahnawakee - not realistic with a tiny budget), or operate without a license. If you operate without a license, you will struggle to find game providers, marketing partners, and bank accounts. It's not impossible but it's hard. If your business is entirely in crypto, the lack of a bank account might not be such a big problem.

As always, your first challenge begins at home. Where are you based? Is gambling regulated there?
 

doraemon4k

New Member
It's true you don't need a license in Costa Rica (more precisely, there are no licenses and no local laws on the matter), but if you plan to take customers from jurisdictions where gambling is regulated (which is most of them by now), you should also have local license for each country. It used to be that serious gambling companies would get a license in Malta and that was enough for most of the world but nowadays these companies also need to get a local license in every EU country, US state, and so on.

However, there are thousands of gambling websites that avoid that regulation and operate in the grey zone (or entirely black), through offshore licenses.

Your options are to find someone who offers a whitelabel solution where you piggyback on their licenses (not realistic with a tiny budget), obtain an offshore license (ie Curaçao, Antigua, or Kahnawakee - not realistic with a tiny budget), or operate without a license. If you operate without a license, you will struggle to find game providers, marketing partners, and bank accounts. It's not impossible but it's hard. If your business is entirely in crypto, the lack of a bank account might not be such a big problem.

As always, your first challenge begins at home. Where are you based? Is gambling regulated there?
Hello, thank you very much for your answer

Small amounts of money will be moved on my website (only in cryptography, deposit and withdrawal), I do not need game providers or bank accounts, I am programming my own cryptocurrency game,

Yes, the game is regulated here, and somehow the game with cryptocurrencies are also in Spain.
So, if I want to operate without a license, should I have an offshore company (servers) in another country like (Costa Rica)?

I want to do everything possible in the legal framework, so as not to have problems in the future.

sorry for my english, greetings
 

doraemon4k

New Member
@Sols already nailed it. I only want to ask what is your budget to setup this operation, 4K US$ only?
Yes, my budget could be around that price for this, but more is impossible, I already spent a lot on the project and I need funds and advertise for my business
 

Cetme308win

Trusted Member
Business Angel
anyone from this forum has an online casino.
What options are there for white label casino?
spaniard here as well.....I'm also interested in crypto gambling .... I found that some russians have online casinos operating without any license....of course,you will need an offshore VPN for setting up your site....
 

SaintVince

Active Member
spaniard here as well.....I'm also interested in crypto gambling .... I found that some russians have online casinos operating without any license....of course,you will need an offshore VPN for setting up your site....
I think in Russia everything is possible. But I wonder how can they accept payments? Or is it crypto only?
do you have a name of their casino?
 

Cetme308win

Trusted Member
Business Angel
I think in Russia everything is possible. But I wonder how can they accept payments? Or is it crypto only?
do you have a name of their casino?
They use virtual wallets for accepting cards as well as other methods like yandex,perfect money and bitcoin.....gambling is almost illegal there.....
 

doraemon4k

New Member
spaniard here as well.....I'm also interested in crypto gambling .... I found that some russians have online casinos operating without any license....of course,you will need an offshore VPN for setting up your site....
Can you tell me a little more about this? Or where can I find relevant information about the problems I may have with justice, where should I install the servers and how to declare all this in Spain?
 

Cetme308win

Trusted Member
Business Angel
Can you tell me a little more about this? Or where can I find relevant information about the problems I may have with justice, where should I install the servers and how to declare all this in Spain?
most of the times guys that don't have a license uses a front business....
about problems you can have with the justice,obviously is illegal,you are not dealing with drugs but is illegal....

What I would do is that:
starting a company is Costa Rica for the casino with nominees,I would try to get a bank account there,in Panama or Puerto Rico for the business....If you get a real physical address for the business not just a mailbox could be easier( I know a bank in Puerto Rico that could open for it and your funds are protected under FDIC,but you need a real office).
About the servers,I would choose Malaysia for that...

About declaring it to Spain, I would create an affiliate marketing company in Seychelles with nominees for example that I would use for promoting the online casino,and declare some of the money as a freelance working there as an affiliate....
 

Sols

Trusted Member
Business Angel
Yes, the game is regulated here, and somehow the game with cryptocurrencies are also in Spain.
So, if I want to operate without a license, should I have an offshore company (servers) in another country like (Costa Rica)?
You're still probably breaking Spanish law, since you are in control of the company, operate from Spain (you, the human, regardless of where the servers are based), and you don't have a Spanish gambling license. You can reduce your exposure by blocking Spanish customers but that's no guarantee.

If you were to move to Costa Rica, it's a different story.

I want to do everything possible in the legal framework, so as not to have problems in the future.
To be completely honest — your options are to either go completely black (illegal), or find other people (investors, co-founders) who can help you fund the business enough to do a whitelabel deal. You can probably find someone with a Curaçao license you can work with. Although if you're building your own games, you might struggle to get a license unless you can get someone to certify the RNG you use to determine it's a fair game.

Whitelabel under EU licenses tend to require six figure capital requirements. Offshore can be done for much less.
 

doraemon4k

New Member
most of the times guys that don't have a license uses a front business....
about problems you can have with the justice,obviously is illegal,you are not dealing with drugs but is illegal....

What I would do is that:
starting a company is Costa Rica for the casino with nominees,I would try to get a bank account there,in Panama or Puerto Rico for the business....If you get a real physical address for the business not just a mailbox could be easier( I know a bank in Puerto Rico that could open for it and your funds are protected under FDIC,but you need a real office).
About the servers,I would choose Malaysia for that...

About declaring it to Spain, I would create an affiliate marketing company in Seychelles with nominees for example that I would use for promoting the online casino,and declare some of the money as a freelance working there as an affiliate....
Hello, thanks for answering,
Then I would need to create an offshore company in Costa Rica and servers in Malaysia.
why malaysia?
And if I operate exclusively with cryptocurrencies I also need to open a bank account?
I've been keeping an eye on this website: Costa Rica offshore company with online gambling l
It is similar to what you propose, do you think it is reliable?

I will consider your advice
Greetings and thank you
 

Cetme308win

Trusted Member
Business Angel
Hello, thanks for answering,
Then I would need to create an offshore company in Costa Rica and servers in Malaysia.
why malaysia?
And if I operate exclusively with cryptocurrencies I also need to open a bank account?
I've been keeping an eye on this website: Costa Rica offshore company with online gambling l
It is similar to what you propose, do you think it is reliable?

I will consider your advice
Greetings and thank you
I think Malaysia could be great because their privacy and protection that bulletproof hostings offer there are pretty good...
A bank account is desirable if you wanna sell the cryptos for FIAT.

I would preffer to contact a local lawyer in Costa Rica because he would even help you to open some bank accounts for your company
 

doraemon4k

New Member
You're still probably breaking Spanish law, since you are in control of the company, operate from Spain (you, the human, regardless of where the servers are based), and you don't have a Spanish gambling license. You can reduce your exposure by blocking Spanish customers but that's no guarantee.

If you were to move to Costa Rica, it's a different story.


To be completely honest — your options are to either go completely black (illegal), or find other people (investors, co-founders) who can help you fund the business enough to do a whitelabel deal. You can probably find someone with a Curaçao license you can work with. Although if you're building your own games, you might struggle to get a license unless you can get someone to certify the RNG you use to determine it's a fair game.

Whitelabel under EU licenses tend to require six figure capital requirements. Offshore can be done for much less.
If I get a registered office address and a resident representative
No problem with this then?

I have been thinking of acquiring this offer: Costa Rica offshore company with online gambling l

They recognize that Costa Rica does not need a license, but they talk about a data processing license that
allows you to perform gaming activities outside the territory of Costa Rica,
I have read many comments on this forum that say that data processing is not necessary.
They also provide legal representation in Costa Rica.
Do you think it is a good option to acquire this?


And one last question, how much do you think it would cost to obtain a white label sub-license? Recommend me a place to ask.
As for the RNG certification, I don't think I have any problem with that, all the games that I am
Doing is probably fair.

sorry for asking you so many questions, thank you very much for your time
 

Sols

Trusted Member
Business Angel
If I get a registered office address and a resident representative
No problem with this then?
I don't think the DGOJ would be satisfied with that.

I have been thinking of acquiring this offer: Costa Rica offshore company with online gambling l
They recognize that Costa Rica does not need a license, but they talk about a data processing license that
allows you to perform gaming activities outside the territory of Costa Rica,
I have read many comments on this forum that say that data processing is not necessary.
They also provide legal representation in Costa Rica.
Do you think it is a good option to acquire this?
You can very easily and cheaply comply with Costa Rican law. That part is easy. What's difficult is complying with Spanish law. As long as you live in Spain, Spanish law applies to you.

Costa Rica can be an OK starting point if you have some staff sitting there, and later pivot into getting a Malta license or whitelabel deal. But only if you have the industry connections and financial means to build a business and brand

I'm not saying it can't be done. There are a lot of illegal gambling websites out there to prove it's possible. But you are (rightfully) concerned about this legally and I would therefore not recommend some cheap, prepackaged Costa Rica solution that will fall apart if DGOJ or other Spanish authority comes after you.

And one last question, how much do you think it would cost to obtain a white label sub-license? Recommend me a place to ask.
As for the RNG certification, I don't think I have any problem with that, all the games that I am
Doing is probably fair.
Probably is not the same as certifiably. If you look at NetEnt, Microgaming, and all the other game manufacturers, their RNGs have been vetted by law enforcement forensics and academic researchers. It's not a simple project but one you will likely have to go through if you want to offer your games under any kind of license. Otherwise, what guarantee is there that the games are fair?

You might have a great technical solution and innovative product, but gambling is a highly and tightly regulated industry.

Consider attending ICE in London next week to learn more about how the industry works: Welcome You can find whitelabel providers there of all sizes and budgets. One of the best conferences in the industry.
 

Cetme308win

Trusted Member
Business Angel
I don't think the DGOJ would be satisfied with that.



You can very easily and cheaply comply with Costa Rican law. That part is easy. What's difficult is complying with Spanish law. As long as you live in Spain, Spanish law applies to you.

Costa Rica can be an OK starting point if you have some staff sitting there, and later pivot into getting a Malta license or whitelabel deal. But only if you have the industry connections and financial means to build a business and brand

I'm not saying it can't be done. There are a lot of illegal gambling websites out there to prove it's possible. But you are (rightfully) concerned about this legally and I would therefore not recommend some cheap, prepackaged Costa Rica solution that will fall apart if DGOJ or other Spanish authority comes after you.


Probably is not the same as certifiably. If you look at NetEnt, Microgaming, and all the other game manufacturers, their RNGs have been vetted by law enforcement forensics and academic researchers. It's not a simple project but one you will likely have to go through if you want to offer your games under any kind of license. Otherwise, what guarantee is there that the games are fair?

You might have a great technical solution and innovative product, but gambling is a highly and tightly regulated industry.

Consider attending ICE in London next week to learn more about how the industry works: Welcome You can find whitelabel providers there of all sizes and budgets. One of the best conferences in the industry.
What he can do is moving to Cyprus,Panamá or Andorra and get the Costa Rica solution right? That could be cheaper than getting a license in Malta
 

Sols

Trusted Member
Business Angel
What he can do is moving to Cyprus,Panamá or Andorra and get the Costa Rica solution right? That could be cheaper than getting a license in Malta
If he's moving, why not move to Costa Rica?

Cyprus and Andorra aren't very gambling friendly, nor crypto friendly. Panama is OK for gambling. Quite a few Costa Rican gambling companies also have offices in Panama.
 

Elve

Building Trust
Entrepreneur
but they talk about a data processing license that allows you to perform gaming activities outside the territory of Costa Rica
This data processing license of CR is useless, it's like throwing your money in the trash (4000 USD per year). No one will recognize that license for Gambling activity as like payment processors.

If you plan to accept crypto only, you do not need a license. With a CR license or nothing your business will be illegal in any case in the EU.

But if you want to continue on this way I can advise you "GLCA abogados" a good firm in San Jose.
 

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