Panama Gambling License

Obtaining a gambling license in Panama offers several advantages for online gambling operators:

Government regulation of the gambling sector
The Gambling Commission in Panama provides competent regulation and continuous monitoring of gambling operations, ensuring compliance with legislation and high safety standards.

Flexible regulatory environment
Panama has a flexible and responsive regulatory environment for gambling activities, making it easy to obtain licenses and conduct business.

Tax incentives
Tax policies in Panama are favorable to gambling operators. Income earned from activities outside the country is not subject to taxation, which provides a significant financial advantage.

Political stability
Panama is characterized by political stability, which is important for long-term sustainability and business security.

Developed infrastructure
Panama boasts an advanced telecommunications and financial infrastructure, providing a favorable environment for online gambling, including secure transactions and reliable means of communication.

The term of the license is 7 years
The extended license term saves the company’s budget for license renewal.

Wide range of gambling games

The license in Panama allows operators to engage in various forms of online gambling, including casinos, sports betting, poker, and others.

Simplicity of business organization
The process of setting up and obtaining a gambling license in Panama is relatively simple compared to some other jurisdictions, making it attractive to operators seeking simplified regulation.

Robust financial sector
Panama’s well-developed financial sector ensures secure financial transactions, allowing operators to manage their finances efficiently.

Before obtaining a gambling license in Panama, it is also important to consider the potential drawbacks of this jurisdiction:

Little awareness among players of what a Panamanian license is
Not all players are aware of the existence of a Panamanian license and the level of protection and regulation it offers. In theory, this could reduce the flow of customers to the website. However, with active customer relations, improved service, and transparency, as well as providing additional information about the license on the site itself, this problem is easily solved.

Strict regulatory oversight
The regulator oversees the gambling activities of companies and requires strict compliance. To run a business that complies with the legislation, it is recommended to contact the professional lawyers of Fast Offshore Licenses.

Small domestic market
Panama, although a major online gambling center, has a small domestic market. Companies that are involved in online gambling in Panama are directing their efforts to conquer the international market.

Reputation in the international market
The government of Panama has faced money laundering problems in the past. The situation is currently under control, but these precedents have hurt the jurisdiction’s reputation.

Panama’s inclusion in the list of jurisdictions that do not cooperate with the EU on tax matters
The attractiveness of a gambling license in Panama may suffer due to the country’s inclusion on the list of jurisdictions that do not cooperate with the EU on tax matters, potentially limiting business opportunities with Europe. However, the country does not have a specific tax on gambling, and Panama’s tax regime is generally favorable to the gambling industry.

The basic requirements for obtaining a gambling license in Panama include:

• the applicant must be a legal entity (registered company or corporation) authorized to do business in Panama;
• the foreign company needs to appoint a local director residing in Panama to interact with the relevant authorities in the country and have the authority to enter into contracts on behalf of the company;
• a physical office of the company in Panama is required;
• no share capital requirements;
• opening a bank account in one of Panama’s banks;
• payment of license fees;
• monthly financial statements;
• adherence to the principles of protection of minors, control of the content of advertising materials and where they are placed;
• implementation of AML compliance measures;
• online gambling requires compliance with technical standards that guarantee the fairness of the game, security, and integrity of the gaming platforms.

There are several types of gambling licenses in Panama that allow for various forms of gambling activities. Among them:

• casino license – allows the operation of traditional casinos with table games and slot machines;
• bookmaker’s license – allows the establishment and operation of bookmaker’s offices for betting on sports and other events;
• online Gambling License – allows companies registered in Panama to operate online gambling platforms, including online casinos and betting websites;
• slot machine license – a specific license for facilities focused on opening slot machine halls;
• bingo hall license – allows for the organization and operation of bingo halls and related activities.

Each type of license requires compliance with its own set of rules and requirements. Businesses should obtain a specific license that matches their gambling intentions.

To obtain a license in Panama, an online casino must be registered as a business. There are many different business structures in the country, but there is no separate type of corporation dedicated solely to outside business. The most common option for registering an online casino is Sociedad Anonima, which is ideal for international businesses because foreigners can own 100% of the shares.

Legally, the names of the shareholders do not have to be disclosed and their assets are separate from the corporation. However, shareholder information must be provided to the bank with which the corporation opens a bank account. The process of creating such a corporation is simple and takes about 2 weeks.

How to incorporate a company in Panama:

1. Decide on the name of the company.

The company name must be unique and contain an abbreviation reflecting its legal form. The uniqueness of the chosen company name should be verified with the Panama State Registry.

2. Prepare the documents and submit them to the Public Registry of Panama.

Before collecting the necessary documents, it is necessary to conduct a background check of all founders for criminal records, as well as to make sure that they have the necessary specialized education and relevant documents.

The list of documents for the registration of Sociedad Anonima includes:

• Articles of Association, which contain the main provisions of the company, such as name, objectives, shares, and management structure;
• Memorandum of Association;
• A copy of the passport and proof of residence (e.g. utility bill) is required for each shareholder and director;
• if you are unable to attend the incorporation in person, you will need a power of attorney appointing a representative to act on your behalf;

All documents must be notarized by a public notary.

3. Registration fee.

The state fee for SA registration in Panama is 300 USD.

4. Obtaining a tax identifier (RUT).

Registro Único del Taxyente (RUT) is a unified register of taxpayers in Panama, which includes all-natural and legal persons obliged to pay taxes in this country. The registration procedure is conducted through the website of the General Directorate of Revenue (Dirección General de Ingresos, DGI).
The registration period is 4-5 working days.

5. Obtaining a Business Authorization (“Licencia de Funcionamiento”) from the Ministry of Finance and Taxes of Panama.

It is mandatory for all persons doing business in Panama to obtain a business permit. Failure to do so may result in penalties from the Panamanian Ministry of Finance and Taxes. The validity period of the permit ranges from 1 to 5 years, with the possibility of renewal.

6. Open a corporate bank account.

The process and list of documents to open a corporate bank account in Panama depend on the requirements of the particular bank, but in most cases, you will need the company’s incorporation documents, articles of incorporation, and documents proving the identity and authority of the director. Some banks may also ask for a statement of the company’s account with another bank or a guarantee from an individual. Opening a corporate bank account in Panama takes 1-2 working days.

In Panama, gambling activities, including both land-based and online platforms, are subject to regulation by the Junta de Control de Juegos (JCJ), established in 1947. The JCJ controls and supervises gambling in the country, issues licenses, and monitors operators to ensure that they operate legally and responsibly.

Regarding the legislative framework, in 1998 Panama passed Law No2 on the Regulation of Gambling, which legalized gambling enterprises in the country, established the procedure for issuing licenses, and defined the powers of the regulatory body Junta de Control de Juegos.

Later, on October 25, 2002, Resolution No. 65 was approved, regulating the conduct of gambling and related activities through electronic communication systems. Then, on November 12, 2002, Panama passed the Online Gaming Law, which established the licensing of electronic gambling. Despite the amendments made from 2003 to 2020 to the 2002 Law, the government decided to make new legislative changes for online gambling. Thus, in 2022, Resolution No25 was passed, aiming to promote gambling activities both among companies operating with residents of Panama and residents of other countries.

The basic rules of Regulation No25 require that a gambling license must be obtained. The licensing process includes compliance with certain rules and regulations such as financial obligations, protection of players’ interests, and countering criminal activities. The law also establishes company and equipment registration requirements, state fees, and regulatory rules, including:

• annual declaration;
• ensuring transparency and preventing fraud;
• maintaining the reputation of the jurisdiction;
• establishing age limits;
• taking measures to prevent gambling addiction.

Legislation prohibits persons under the age of 18 from participating in gambling, including online gambling, and operators are required to enforce it.

In addition, businesses wishing to operate in this jurisdiction are required to comply with anti-money laundering regulations, and counter-terrorist financing and maintain high standards of fair dealing with players.