What Is a Panama Gambling License?
The Republic of Panama legalised remote betting through Executive Decree No 26 of 2003 and the later Online Gaming Act (Law No 32/2012). A permit – widely called the Panama Internet Gaming License – is issued by the Junta de Control de Juegos (JCJ), part of the Ministry of Economy and Finance.
The jurisdiction underwent a major transformation in 2022 with the passage of Resolution No. 25, which legalized all online gambling in Panama. It offers a single Internet Gaming License for remote operators plus separate concessions for land-based casino floors and betting shops. The JCJ does not distinguish between B2C and B2B; software vendors integrate under the operator’s certificate.
- Scope: any real-money casino, sportsbook, poker or lottery site hosted within or hosted in Panama may serve players abroad. Residents of Panama remain barred.
- Term: five years, renewable. The JCJ publishes the licence on its public site; operators must display the number on their homepage.
Panama is the southernmost country of Central America and serves as one of the biggest financial, merchant and transport centers in Latin America. The gaming industry in Panama is controlled by the Panama Gaming Control Board, established in 1947, which oversees both land-based and online gambling operations. According to the Ease of Doing Business in Latin America Index 2019, Panama ranks 8th in terms of time, cost, minimum capital, and bureaucratic procedures.
Benefits of Obtaining a Gambling License in Panama
The advantages of obtaining a gambling license in Panama are quite attractive:
| Benefit | Detail |
|---|---|
| Low headline tax | Offshore gaming companies are not subject to corporate or gaming duty if revenue is earned abroad. |
| Fast processing | The licence usually takes one to two months once the file is complete. |
| One permit covers all forms of online gambling (casino, sportsbook, bingo) | A Panama gambling license covers all forms of online gambling without requiring separate licenses for each product. |
| Flexible corporate law | A company in Panama can be 100% foreign-owned and directors may reside abroad. |
| Currency freedom | No exchange controls; settlements may be held in USD, the legal tender. |
Requirements for Applicants
Obtaining a license in Panama requires meeting specific criteria established by the Junta de Control de Juegos to ensure operator integrity and compliance with regulatory standards.
- Incorporate a Sociedad Anónima with min. US $10 000 stated capital.
- Provide experience in the gambling industry (CVs of key staff).
- Submit police clearances and proof of funds for all shareholders.
- Host primary servers within Panama or mirror logs locally for JCJ inspection.
- Lodge a US $150 000 bank guarantee with the Central Bank of Panama to protect player balances.
Step-by-Step Process to Obtain a Panama Gambling License
The application process for obtaining a Panama gambling license always follows the structured process:
| Stage | Action | Days |
|---|---|---|
| 1 | Form the company in Panama; open escrow for guarantee | 7 |
| 2 | File the JCJ application, business plan and AML manual | 1 |
| 3 | JCJ due-diligence & interview | 20–30 |
| 4 | Pay the initial license fee (US $40 000) | – |
| 5 | License is issued and published | Day 30–45 |
Costs and Fees Associated with the License
You should better understand the complete cost structure to budget appropriately for both initial licensing and ongoing operational expenses in Panama.
| Item | Amount (USD) |
|---|---|
| Initial licence fee | 40,000 |
| Annual licence fee | 20,000 |
| Bank guarantee | 150,000 |
| Local office + agent (typical) | 6,000 p.a. |
The initial license fee of $40,000 covers a master license valid for up to seven years. There is also an annual license fee of $20,000 that must be paid regardless of the license type. License processing costs typically amount to under $10,000 and cover administrative expenses during the application review.
Taxation and Financial Advantages
Panama offers one of the most attractive tax environments in the global gaming industry, providing significant financial advantages for licensed operators:
- Income tax: 0% on profits earned outside Panama; local play attracts 10% of gross gaming revenue.
- VAT/Sales tax: exempt on offshore digital services.
- No withholding on dividends to foreign shareholders.
Comparing Panama with Other Licensing Jurisdictions
Let’s understand how Panama compares to other popular licensing jurisdictions:
| Metric | Panama | Curaçao | Malta |
|---|---|---|---|
| Application fee | $40 000 | €4 600 | €5 000 |
| Annual fee | $20 000 | €24 600 | €10 000–€25 000 |
| Corporate tax offshore | 0% | 2% | ≈ 5% effective |
| Approval speed | 1–2 months | 8 weeks | 12–16 weeks |
| GGR duty offshore | 0% | 0% | Contribution 1.25–4% |
Expert Tips for Maintaining Compliance and Success
Successful operation under a Panama gambling license requires ongoing attention to compliance requirements and regulatory best practices. Here are our expert tips:
- File monthly GGR statements – even when 0% duty – to keep the gaming control board satisfied.
- Update AML/KYC manuals yearly; Panama features on FATF grey lists periodically and scrutiny rises.
- Display the JCJ license on the site footer with a direct link to the public registry.
- Ring-fence player funds in a segregated account to avoid guarantee claw-backs.
Verdict
A Panama gaming license combines modest fees with zero offshore tax, making it attractive for LATAM-facing sportsbooks and crypto online casinos. The trade-off is tougher payment-provider onboarding compared with tier-one EU licences. Operators planning to scale into regulated European markets should treat Panama as a stepping-stone rather than an end state.
Recent legislative improvements, including Resolution No. 25 (2022), have strengthened Panama’s position as a legitimate gaming jurisdiction while maintaining its cost advantages. The country’s political stability, advanced telecommunications infrastructure, and banking-friendly environment provide a solid foundation for successful gaming operations.