Question What is the best jurisdiction for unlicensed cryptocurrency gambling website?

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squiddy

New member
Hello everyone,
I'm going to start unlicensed cryptocurrency gambling website. No fiat money will be involved - user payments, prizes payouts, invoices for 3rd party services or salaries will be paid in crypto olny. So I guess I don't need bank account at the moment.
What company jurisdiction and type would be the best for this kind of business?
My idea is to setup LLC in Marshal Islands and build whole IT infrastructure elsewhere.
Will it work? Are there other/better jurisdictions I could choose?

I'd greatly appreciate your help.
 

Sols

Staff member
Mentor Group Gold
Don't they require gambling/data processing license?
Gambling license: no such thing as online gambling under Costa Rica law. It's a legal vacuum.

Data processing license: this is basically just a bribe some service providers will push on you to earn a few more dollars. Pay it if you want to. It has no meaning in reality.
 

squiddy

New member
Have the whole IT infrastructure to be kept withing Costa Rica territory or I'm free to use data centers around the world?
 

Sols

Staff member
Mentor Group Gold
Because you operate in a legal vacuum in Costa Rica and usually offer illegal gambling services to players, it doesn't really matter where the servers are located but many prefer to keep them in Costa Rica or Panama.

What do you want to do?

If you want to follow the law, then get local licenses as required where your players are located.

If you don't mind breaking the law and plan to keep a low profile, and not grow your business so much it attracts law enforcement attention, Costa Rica has what you need.

There is no legal way to offer unlicensed, unsupervised gambling. Once you go Costa Rica, it's just a question of in what manner you decide to break the law. Hosting your illegal games in Costa Rica is legally not any different than hosting them somewhere else. The law is already broken.
 

squiddy

New member
My plan is to start gambling service but with slightly new approach.
Imagine web application, kind of slot machine - no registration, no deposits or withdrawals, just pay to play. User places bet, pays and got paid. Game outcome is determined in provably fair fashion.
Apart from ongoing network traffic surveillance, it won't be possible for 3rd parties to tell where users or funds come from.
My goal is to find the way to run this kind of business as legit SOF.
 

Sols

Staff member
Mentor Group Gold
That's a good idea and other people are doing it successfully.

But there is no legal way to do it and also offer it to players resident in regulated markets (which is most of the world by now). You end up having to launder the money.
 

squiddy

New member
This is what I was afraid of. Sadly it looks like I need to reconsider my plans :confused: Thank you for valuable input!
 

squiddy

New member
agree, problem will be to get banking for your setup. Payment processing is also not that easy. You will need to study your competitor carefully.
As I mentioned I was not going to use bank account on business level at all. I know it's impossible to get one for unlicensed gambling.
Planned solution was to use cryptocurrencies only. Earned coins would be distributed as profit to company members. Then members would liquidate crypto acting as natural persons.
 

squiddy

New member
Are you looking to stay unregulated for a long time?
And i would open a european entity thats servicing the offshore entity.

Eur - IT company
Offshore - Crypto
I guess I have no choice but stay unregulated forever. Even having gambling license from selected jurisdiction I won't be allowed to accept players from other countries.
Regarding the structure you suggested I do not see added value for extra IT company. How would it help?
 

Panther

New member
I guess I have no choice but stay unregulated forever. Even having gambling license from selected jurisdiction I won't be allowed to accept players from other countries.
Regarding the structure you suggested I do not see added value for extra IT company. How would it help?
i could explain why but i dont know the rules about chatting privately. anyway do what you think is best brother i wish you the best.
 

squiddy

New member
i could explain why but i dont know the rules about chatting privately. anyway do what you think is best brother i wish you the best.
I do not insist on my solution, just didn't understand your advise :) But If you cannot share more details here, that's OK.
 

celizo

Active Member
What do you think of creating:

1/ a company A in Costa Rica.
2/ and a company B in another jurisdiction as services provider (customer support, digital marketing, servers/databases administration...)

B will invoice A for these services (paid in crypto).

For the jurisdiction of B, I don't know the best option (easy to setup and manage [accounting], low tax)? Seychelles, Cyprus, Delaware, UK, UAE...?
Or B as an onshore company depending where you live?
 

squiddy

New member
So you suggest to create intermediary entity - some kind of shell company (B)? If yes, then sure. Having one was planned as mandatory part of business structure. It's possible I just misunderstood Panther earlier.
 

Panther

New member
So you suggest to create shell company (B)? If yes, then sure. Having one was planned as mandatory part of business structure. It's possible I just misunderstood Panther earlier.
;) done this process a million times with other clients (i live in Cyprus so most of the Fintech industry is here) they all faced same questions at somepoint
 

squiddy

New member
;) done this process a million times with other clients (i live in Cyprus so most of the Fintech industry is here) they all faced same questions at somepoint
Do you suggest to sell crypto on company level and redistribute profits as fiat or just pass crypto directly to company members? I expect liquidating crypto on business level can be hell of a challenge.
 

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