Costa Rica Casino Laws

With the new Casino Laws in Costa Rica people that are interested in buying a hotel in Costa Rica that has a casino attached have been asking us many questions. I had our lawyers put together a summary of the new law to help answer these questions. We at Coldwell Banker Vesta Group Jaco always go above and beyond to find the answers for our clients when they are looking to invest in Costa Rica real estate. Enjoy the reading and please email us or give a call with any of your Costa Rica real estate needs.

i. Definitions:

For the Costa Rican legislation, a casino is any establishment duly authorized for the execution of gaming activities, solely as an additional service provided by a hotel.  Only authorized establishments may use the “Casino” denomination, or execute their activities.  A hotel may only have one casino operating.

Every game executed by a casino must be authorized and in accordance with all applicable legal regulations.  For legal purposes “game” is any and all entertainment, recreation and distraction activity that takes place in the establishments destined for their execution.  All legally permitted games may take place in a casino.

Slot machines may only operate within a casino.

ii. Operations Permit:

a. Entity:

The Ministry of Public Security is the entity in charge of the vigilance, supervision, and superior control of casinos.  Said Ministry authorizes the functioning permits, previous compliance of legal requirements. This permit states the number of tables and machines that may operate in a casino.  The permit will be issued to the name of the hotel’s name.

b. Requirements :

For the casino operations permit the following is required:

i. The hotel or hotel owner has to be enlisted as a Patron within the Costa Rican Social Security Office (C.C.S.S.), and up to date with the pertinent obligations.

ii. The Hotel must be up to date with all tax obligations.

iii. Sworn statement establishing the origin of the funds for the initial investment and operation of the casino.

iv. Sanitary permit for casinos emitted by the Ministry of Public Health.  Previous to said authorization the Ministry of Public Health must perform a site inspection with the purpose to certify the site complies with all legal requirements.

v. Certificate from the Costa Rican Tourism Institute establishing the "tourist interest declaration" and number of rooms the hotel hosting the casino has.

vi. Estimate of the class and number of machines to be operating in the casino.

vii. Estimate of the number of personnel that will provide services in the casino, indicating the services that are going to be supplied.

The casino must keep an entry book for the names and identification number of the personnel in charge of the gaming tables and the administrators of the casino.  This book must be handed over to the Ministry of Public Security at the moment when the casino begins operations, and must be updated every six months.

The casino may remain open from 15:00 to 5:00 hours of the following day.

The hotel that provides the casino must comply with the following;

i. A minimum of sixty rooms.

ii. Qualified as a "complete service" hotel based on the Costa Rican Tourism Institute Hotel Rating Manual, with a minimum of three stars.

iii. The casino destined area must not exceed fifteen percent of the total area of the hotel.  Said percentage may be augmented by ten points per every twenty additional rooms.  The casino and lobby must be distant from each other, with no direct access to public road, but within the same hotel.

It is strictly prohibited:

i. The entrance and permanence of underage children in the casino area.

ii. The entrance and permanence of people who demonstrate a drunken behavior, under the influence of drugs, or suffer an altering behavior, that may cause public disturbance or affect the developing games.

iii. The free distribution of alcoholic beverages to clients.

iv. The entrance and permanence of weapons, or objects that may be used as such, excepting security personnel.

iii. Taxation :

a. Taxes:

A Casino’s net revenues from the exploitation of duly organized gaming rooms, is subject to a ten percent

(10%) tax.   In addition to the previously established tax, casinos will pay a monthly sum of fifty thousand colones (¢ 50.000) per duly authorized table.

The obliged to cancel previous tax must render a monthly sworn statement. Based on said statement, the corresponding taxes must be paid on the first ten days of the following month.

A penalty for the execution of unauthorized games will be sanctioned with a two hundred thousand colones

(¢ 200.000.00) penalty, without undermining any other applicable sanction.

b. Functioning Permits:

Municipal patents authorizing the exploitation of a casino or gaming room must cancel an annual fee of five hundred thousand colones (¢ 500.000).