The Republic of Panama is the southernmost country in Central America. Embracing the isthmus and more than 1,600 islands off its Atlantic and Pacific coasts, the tropical nation is renowned as the site of the Panama Canal, which cuts through its midsection. Panama is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north, and the Pacific Ocean to the south.
It is equally well known for its natural beauty, for its diverse plant and animal life, including hundreds of bird and tree species, and for its vibrant music and culture. The capital and largest city are in Panama City, the metropolitan area of which is home to nearly half of the country’s population of 3.9 million. The national currency, the balboa, is issued only in coins. The balboa is at par with the U.S. dollar, and U.S. paper currency is freely circulated.
The Stock Exchange of Panama is the main stock exchange. In 1970 the Panamanian government began to promote offshore banking by giving international transactions tax-exempt status; it also removed other forms of regulation. As a result, Panama attracted great amounts of foreign capital, and by the 1980s it had become Latin America’s largest financial center.
Several major Latin American, North American, and European banks have branch offices in Panama City. Finance and trade are the cornerstones of the Panamanian service sector, which is, in turn, the basis of the national economy. Panama is one of the biggest financial, merchant, and transport centers in Latin America.
The gambling jurisdiction of Panama offers US standard infrastructure and necessary resources and at half the cost. Panama is an attractive place to launch an operation due to minimal governmental interference and gambling-friendly banking industry. Panamanian tax policies allow Internet gaming companies to operate essentially tax-free when accepting foreign wagers.
Additionally, Panama has become the Mecca of online casinos. The government of Panama offers casino operators, software, and service providers in the gambling industry, with a gambling license that allows gambling operators to conduct business related to casino, lotto, and other gaming-related activities. Panama Gambling License is one of the most popular licenses for online casinos worldwide.
Panama has a long history of legal casinos and gambling with over 30 land-based gambling operations, including lottery, horseracing, and bingo halls, already well established in the country.
Panama’s infrastructure offers a wide array of services for online gaming operators and providers, such as high-capacity private racks, private cloud services, custom dedicated servers amidst other hosting options.
Panama has long been recognized as one of the preferred locations for Online Gambling operators to base their operations. This success has been due to a combination of factors, such as a progressive legislative system, political stability, first-rate telecommunications facilities, and a well established financial services industry. A wide range of gambling sites operates out of Panama including sports betting, casino sites, poker, bingo, and more.
Panama Online Gambling Regulations
In Panama, the operation of gambling establishments both land-based and online is regulated by Junta de Control de Juegos. The Junta de Control de Juegos is one of the smallest advanced gaming jurisdictions in the world which audits, licenses, and regulates online casino websites operating in its waters and servicing the international community.
The Gaming Decree-Law No. 2 of February 1998 makes it so the State of Panama issues all authorizations, contracts, and gaming licenses to third-party operators of brick and mortar casino venues, other live venues with slot machines, online betting sites, and online casinos which offer games considered to be games of chance.
In 2002, new legislation in relation to regulated online gambling was introduced in Panama. Several of the world’s leading sports betting and online casino sites are currently licensed and regulated by Panama.
National Anti-Money Laundering Regulations, Unusual Transactions Act, Counter-Terrorism Financing Regulations and Know Your Customer Policies are applicable to all Panama Gambling Companies. As part of its duties, the Junta de Control de Juegos monitors gaming businesses and services to ensure that they operate according to the standards and regulations of the Government of Panama. Compliance audits are conducted on a regular basis to ensure that the terms of the license are met.
Licensees must maintain a complete audit trail for each player making a deposit with an operator, including financial transactions and individual bets. Gaming systems, including back-end software logs, must be made available to third-party auditors. Gaming rules, results of games, and pay-outs are to be made available to Junta de Control de Juegos for five years.
Let’s talk more about the benefits by understanding the reasons why obtaining a Panama igaming license may be ideal for you.
How to Start An Online Gambling Business in Panama
When starting a Panama Online Gambling Business, first of all, it’s important to think about one of the most essential procedures, that is company registration and acquisition of the license. Panama Gambling License gives many excellent opportunities to each licensee and makes their business profitable. Internet gaming companies domiciled in Panama enjoy complete tax exemptions.
Customs duty concessions are given for imports needed to carry on Internet gaming. Licensed Gambling companies in Panama may qualify for tax-exempt status, meaning they do not have to pay any income tax. There is no VAT or other Sales Tax applicable on Panama, there is also no tax or other duties payable on gambling operations. Offshore companies, such as on-line gaming companies are not subject to foreign exchange control.
Panama has political stability, first-rate telecommunications facilities, and a well-established financial services industry. In addition, it maintains an attractive environment for international online gaming companies. Panama Gambling License is recognized by many countries all over the world, so you will have a large potential customer base after getting it.
In order to obtain a Panama Gambling License, the decision to approve the application is at the discretion of the Junta de Control de Juegos, based on the documentation submitted by our experts. Panama issues one Online Gambling license which covers all gaming operations, igaming service providers, network operators, affiliates, white-label operators, and igaming software suppliers.
With this Panama Gambling License, online gaming companies can operate legally. Each applicant undergoes a thorough assessment, ensuring that licenses are only awarded to those applicants who are able to demonstrate such a financial standing and integrity as to preserve the international reputation of Panama as an online gambling hub.
In case something does not correspond to requirements, the Junta de Control de Juegos will provide a checklist of necessary improvements. A Panama Gambling License covers all forms of online gambling including Casino, eSports, Poker, Sports Betting, Lotto, Bingo, Horseracing, Bitcoin Casino, Fantasy Sports, Games of Skill, and other gaming-related activities without being required to obtain one license for each individual product. Panama Gambling License enables companies to operate all over the world.
Panama Gambling Requirements
Residence in Panama. Operators wishing to offer their services to Panama gamblers must be residents of Panama and they must obtain the relevant licenses and authorizations from the Junta de Control de Juegos. In case the company is a foreign entity, it must appoint a local director, whose domicile is in Panama, to deal with the competent authorities in the country and have the power to conclude contracts on its behalf
Opening of a bank account with one of the banks in Panama where the operator would need to deposit the players’ money. Licensed remote gaming operators will only be allowed to make payments to players through the payment processors that have been approved by the Junta de Control de Juegos
Requirements regarding the minimum share capital of the company depending on the type of game it offers
A monthly declaration giving details regarding income from games of change as well as the fees due will have to be submitted to the Junta de Control de Juegos on a standard form
Compliance with the principles regarding the protection of minors as well as with the content of the promotional material used and the locations where they can be displayed
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