How Much Does It Cost to Start an Online Casino? The Complete 2026 Guide - Company Jurisdiction
Choosing the Right Company for an Online Casino
A gaming licence is issued to a legal entity, but the licensed company is not always the only company used within an iGaming structure. The wider company incorporation and corporate structuring plan should be designed around licensing, payments and supplier onboarding.
In practice, an operator planning to start an online casino may require separate entities for licensing, intellectual property, payment processing, marketing or operational support.
The choice of company jurisdiction affects:
- Gaming licence eligibility
- Banking and payment-provider acceptance
- Tax and reporting obligations
- Ownership disclosure
- Corporate maintenance
- Supplier onboarding
- Ability to receive and settle player funds
For startup operators, four company jurisdictions are commonly considered: Costa Rica, Nevis, Belize and the British Virgin Islands. A Cyprus company may then be added as a separate EU payment, settlement or contracting layer where the project requires it.
Each offers a different balance of cost, privacy, administration and acceptance by banks and payment providers.
Costa Rica Company
Costa Rica is one of the most frequently used company jurisdictions for startup iGaming projects.
It is particularly common in structures where the gaming licence is obtained in another jurisdiction, while the Costa Rican company acts as the operating or contracting entity.
A Costa Rican company may be used to sign agreements with:
- Casino platform providers
- Game aggregators
- Payment service providers
- Marketing partners
- Affiliates
- Customer-support suppliers
Why Operators Choose Costa Rica
Costa Rica is often selected because it offers a relatively straightforward corporate structure and is familiar to many suppliers working with international online gaming businesses.
For a startup, the main advantages may include:
- Relatively fast incorporation
- Predictable annual maintenance
- Flexible international business use
- Recognition among iGaming technology and service providers
- Compatibility with several offshore gaming-licence structures
Costa Rica is often paired with an Anjouan gaming licence because the combination provides a practical entry structure for a first-time operator.
Limitations of a Costa Rica Company
A Costa Rican company does not automatically solve banking or payment-processing requirements.
Some European banks, card acquirers and payment institutions may treat a non-European online gambling company as high risk. They may request additional documents, higher reserves, stronger transaction monitoring or a separate European contracting entity.
The company should therefore be selected together with the payment strategy rather than before it.
Nevis Company
Nevis is commonly used for international business structures that require corporate flexibility and a relatively straightforward maintenance framework.
A Nevis company can be used as:
- The licensed gaming entity
- An operating company
- A holding company
- An intellectual-property owner
- A contracting entity for international suppliers
Why Operators Choose Nevis
Nevis may be attractive to operators looking for a structure that can support international ownership, commercial agreements and future business expansion.
Potential advantages include:
- Flexible corporate organisation
- International business use
- Relatively manageable annual administration
- Potential use as part of a multi-company structure
- Compatibility with selected offshore licensing models
Nevis may also be considered when the operator wants the licensed entity and operating company to be located in the same jurisdiction.
Limitations of a Nevis Company
As with most offshore entities, payment-provider acceptance should be checked before incorporation.
A Nevis company may be acceptable to one PSP and rejected by another, particularly where the business:
- Targets high-risk markets
- Processes card payments
- Has limited operating history
- Uses a complex ownership structure
- Cannot demonstrate sufficient compliance procedures
A separate payment or settlement company, such as a Cyprus company, may therefore be required depending on the selected PSP and banking model.
Belize Company
Belize offers an established corporate registry and is commonly used for international commercial structures. Companies are registered through the Belize Companies and Corporate Affairs Registry.
In an iGaming structure, a Belize company may be used as:
- An operating company
- A holding company
- A supplier-contracting entity
- An intellectual-property owner
- A marketing or management company
Why Operators Choose Belize
Belize may appeal to operators seeking a familiar international corporate structure with relatively straightforward administration.
Potential advantages include:
- Established company-registration framework
- Flexible shareholding structure
- Use in international commercial agreements
- Relatively simple corporate maintenance
- Potential use within a holding or operational structure
Limitations of a Belize Company
Belize is still treated as an offshore jurisdiction by many European financial institutions.
As a result, a Belize company may face:
- Longer onboarding with banks and PSPs
- Enhanced due diligence
- Higher processing fees
- Larger rolling reserves
- Restrictions on certain card-acquiring services
- Limited access to direct SEPA settlement
For this reason, Belize may work well as a corporate or holding entity, while a separate European payment or settlement company in Cyprus handles selected financial functions.
British Virgin Islands Company
A British Virgin Islands Business Company is formed under the BVI Business Companies Act. The BVI framework allows several company types, including companies limited by shares, which are commonly used in international structures.
BVI companies are frequently used for holding, ownership and investment structures rather than as the main player-facing operating company.
Why Operators Choose the BVI
The BVI is widely recognised in international corporate structuring and is often used where the owners require a clear holding structure.
A BVI company may be used to:
- Hold shares in the licensed operating company
- Own intellectual property
- Hold investments in several gaming projects
- Separate ownership from day-to-day operations
- Structure investor participation
The BVI may be particularly useful when several shareholders or investors are involved and the group requires a separate top-level holding entity.
Limitations of a BVI Company
A BVI company is not always the strongest choice for direct player payments.
Many payment institutions and acquiring banks prefer the merchant-facing company to be located in a jurisdiction with clearer operational substance, local management and a closer connection to the payment market.
Using a BVI company as the direct merchant may lead to:
- More extensive due diligence
- Questions about operational substance
- Limited access to European acquiring
- Higher reserves and processing costs
- Requests for an additional operating or payment entity
For this reason, BVI is often better suited to a holding role than to direct collection of player deposits. Our company incorporation team can assess whether a BVI holding layer is appropriate for the wider structure.
Why an Offshore Gaming Company May Need a Cyprus Payment Agent
An offshore company does not automatically need a Cyprus payment agent as a matter of law.
The need usually arises from the operator’s commercial and payment structure rather than from the gaming licence itself.
A Cyprus payment agent may be introduced when the licensed or operating company is located in Costa Rica, Nevis, Belize or the BVI, but the operator requires access to European payment infrastructure.
The Cyprus entity may act as a contracting, settlement or collection agent under a formal agreement with the licensed operator.
1. Access to European Payment Providers
Many European PSPs and acquirers are more comfortable contracting with an EU company than directly with an offshore gaming business.
A Cyprus company can provide:
- An EU-registered contracting entity
- European corporate documents
- A clearer local compliance profile
- Access to selected EU banking and settlement services
- A familiar legal framework for supplier agreements
This does not guarantee approval. Gambling remains a high-risk industry, and the PSP will still review the gaming licence, UBOs, target markets, transaction flows and compliance procedures.
2. Euro and SEPA Settlement
A Cyprus entity may be used where the operator needs to receive or settle payments in euros through European banking infrastructure.
This can simplify:
- Settlement from European PSPs
- Payments to platform and game suppliers
- Affiliate commissions
- Operational expenses in the EU
- Currency management
The precise account and settlement model depends on the bank or payment institution and must be approved during onboarding.
3. Card Acquiring
Direct card acquiring for an offshore casino company can be difficult.
Some acquirers may require:
- An EU merchant entity
- Local substance
- European management or operational presence
- Clear contractual links to the licensed operator
- Detailed AML and chargeback controls
A Cyprus payment-agent structure can make the contractual and settlement chain easier for the acquirer to understand.
It does not remove the need to disclose the offshore licensed operator. The PSP must understand the full flow of funds and the role of every company in the structure.
4. Separation of Gaming Operations and Payment Functions
A payment-agent structure can separate the regulated gaming activity from selected payment and administrative functions.
For example:
- The offshore company holds the gaming licence
- The casino website and player terms identify the licensed operator
- The Cyprus company receives or settles funds as an authorised agent
- The relationship is governed by a payment-agent agreement
- Accounting records show the funds as belonging to the licensed operator
This separation can make reconciliation, reporting and supplier payments more manageable.
5. Stronger Commercial Perception
Some platforms, payment providers and commercial partners are more comfortable dealing with an EU company for invoicing and settlement.
A Cyprus entity may provide a more familiar corporate framework without replacing the offshore gaming licence.
It can also make it easier to demonstrate:
- Operational substance
- Transparent management
- Auditable financial records
- Clear intercompany agreements
- European accounting and reporting
What a Cyprus Payment Agent Does Not Do
A Cyprus payment agent does not legalise an otherwise unlawful gaming operation.
It also does not:
- Replace the gaming licence
- Allow the operator to target prohibited markets
- Remove AML or KYC obligations
- Guarantee bank or PSP approval
- Hide the identity of the licensed operator
- Allow an unlicensed company to provide regulated payment services
Where the Cyprus company itself provides regulated payment services from or within Cyprus, authorisation from the Central Bank of Cyprus may be required. Cyprus payment institutions and electronic money institutions operate within the PSD2 framework, and authorised institutions may provide services across the EU subject to the applicable passporting rules.
For this reason, the structure should distinguish between:
- A commercial payment or collection agent
- A regulated payment institution
- An electronic money institution
- A merchant account holder
- The licensed gaming operator
These roles are not interchangeable.
Documents Required for a Cyprus Payment-Agent Structure
A properly documented structure may require:
- Payment Agent Agreement
- Intercompany Services Agreement
- Clear description of the flow of funds
- Gaming licence and company documents
- Board resolutions approving the arrangement
- AML and KYC policies
- Player Terms and Conditions
- Privacy Policy
- Payment and withdrawal policy
- Accounting and reconciliation procedures
- Transfer-pricing support where applicable
The casino website, merchant descriptor, player terms and PSP contracts should all describe the structure consistently.
Any mismatch between the licensed operator, payment recipient and website terms can delay onboarding or lead to account suspension.
Example Corporate Structures
Structure 1: Costa Rica Operating Company with Cyprus Payment Agent
- Costa Rica company acts as the licensed or operating entity
- Gaming licence is issued to the Costa Rica company or linked structure
- Cyprus company contracts with selected European PSPs
- Cyprus company receives funds as an agent for the operator
- Funds are reconciled and transferred under the agency agreement
This structure may suit a startup that needs an affordable offshore operating company but also wants access to selected European payment channels.
Structure 2: Nevis Licensed Company with Cyprus Payment Agent
- Nevis company holds the gaming licence
- Nevis company signs platform and gaming agreements
- Cyprus company provides payment collection and settlement support
- Both entities maintain separate accounting records
- The full structure is disclosed to banks and PSPs
This model may be considered where the operator wants the licensed company in Nevis but requires a European payment layer.
Structure 3: BVI Holding Company, Offshore Operator and Cyprus Payment Agent
- BVI company holds the shares of the operating group
- Costa Rica, Nevis or another company holds the gaming licence
- Cyprus company manages selected payment and settlement functions
- Intercompany agreements define ownership, services and payment flows
This model may be suitable for a project involving several investors, brands or operating companies.
Which Company Structure Is Best?
There is no company jurisdiction that works equally well for every online casino.
A practical starting point is:
- Costa Rica for a cost-efficient startup operating structure
- Nevis for broader international flexibility
- Belize for selected operational, holding or supplier-contracting structures
- BVI primarily for ownership, investment and holding purposes
- Cyprus as a potential EU payment, settlement or operational layer
The final structure should be tested against the gaming licence, target markets, platform, game providers, banking requirements and expected payment flow before any company is incorporated.
The objective is not to create the largest possible group structure.
It is to create the simplest structure that banks, PSPs, suppliers, regulators and auditors can understand.
Discuss Your Company Structure
The correct structure depends on the gaming licence, ownership model, target markets, banking requirements and expected flow of funds. Incorporating the companies before these points are confirmed often creates unnecessary cost and restructuring later.
iGLicenses can compare the available jurisdictions, coordinate company incorporation, and help align the operating structure with banking and payment requirements.