Panama Gambling License
The largest banking system of the offshore zone, the absence of currency control and the territorial principle of taxation, and political and economic stability – are just a few privileges for holders of Gaming License Panama. If you are searching for an effective solution for company legalization in Panama – Gofaizen & Sherle guarantees you professional support for guaranteed results.
In search of a jurisdiction to open a gambling business, many companies are looking for a similar infrastructure to the U.S. but do not want to overpay. Panama is an ideal solution for starting and scaling a business due to the lack of excessive regulatory intervention and favorable environment for online gambling operators.
The key advantage is the territorial principle of taxation, thanks to which companies providing services to non-residents are exempt from taxes. However, a fixed levy of 10% of gross revenue (GGR) applies to gambling operators.
The Panama iGaming License allows you to work with any type of gambling, and its validity period can reach up to 20 years. Local servers are not required and financial institutions support international operations while complying with AML/KYC standards.
The main regulator is the national gambling control board, JCJ (Junta de Control de Juegos). The JCJ regulates and controls gambling in the country. It issues licenses and supervises gambling operators to ensure that they operate legally and responsibly. To obtain a gaming license in Panama, one must meet certain requirements and procedures established by the JCJ, such as financial stability, transparency of operations, and protection of players’ interests.
Advantages of obtaining a Panama Gambling License
Access to the international market
A license issued in Panama allows operators to work with players all over the world, providing a global reach.
Favorable taxation
Panama offers attractive tax conditions for gambling companies, including exemption from income tax and no exchange controls outside Panama.
Privacy
Panamanian law ensures the privacy and protection of player data, which helps to increase trust and attract new customers. In addition, the regulator protects shareholder data and does not require it to be disclosed in public registers.
Variety of gambling opportunities
The Panama Gambling License allows operators to offer a wide range of gambling types, including casino, poker, sports betting, and other forms of gambling.
Flexibility in attracting investment
Ability to utilize loans, mortgages, and trusts, providing additional financial advantages.
Professional regulation
The Panama Gaming Commission provides professional support and regular monitoring of gambling operations, ensuring compliance with legislation and high-security standards.
Fast registration and freedom in infrastructure
It takes up to 20 working days for a company to register in Panama, and operators can host gaming servers in any country without mandatory local hosting.
Long-term validity
The license is issued for a period of up to 20 years, which saves the company’s budget for permit renewal.
Request more information about the Panama Gambling License
Disadvantages of obtaining a Panama Gambling License
- Not all players are aware of what a Panamanian license is and what level of protection and regulation it has. Theoretically, it can reduce the flow of clients to the site. But if you work with clients, improve service and transparency, and additionally provide information about the license on the site – this issue can be solved.
- The regulator carefully monitors the gambling activities of companies and requires compliance with several rules. Without professional legal assistance, it can be difficult to run a business that will meet the legal requirements.
- Panama has a small domestic market; companies must realize that they must take certain steps to enter the international market to increase profits.
- In the past, the Panamanian government had problems with money laundering, which affected the reputation of the jurisdiction. Now these moments are controlled but are still “fresh in the memory” of many global players.
Procedure for obtaining a gambling license in Panama
Preparation of documents
Step 1
- Before collecting documents, it is necessary to check the background of all founders for the absence of a criminal record, the presence of specialized education and to confirm the relevant certificates. In addition, it is necessary to collect financial documents, develop a business plan and confirm the sources of funds.
Develop quality software
Step 2
- You will need to develop a website with quality and simple functionality that is player-friendly. The gaming platform should provide a high level of security, user data protection, and customer verification system in accordance with AML/KYC standards.
Open a company
Step 3
- The next step is to register your gambling company with the local Registry, which will meet the government requirements.
The completed application, along with a package of documents and bank references, must be submitted to the JCJ (Junta de Control de Juegos) regulator for review. Usually, this process takes about 6-8 months. If you have provided incomplete information, the regulators may request additional documentation.
Gofaizen & Sherle will provide professional support to obtain a favorable response within the short timeframe (implied by the jurisdiction).
Submission of the application
Step 4
- The completed application, along with a set of documents and a bank recommendation, must be submitted to the JCJ (Junta de Control de Juegos) regulator for review. Usually, this process takes about 2-3 months. If you provide incomplete information, the regulators may ask for additional documentation.Gofaizen & Sherle will provide professional support to get a positive response in a short time frame (implied by this jurisdiction).
Payment of fees
Step 5
- At the payment stage, mandatory fees must be paid. The state duty for the license is USD 50,000. To confirm the company’s solvency, a deposit of USD 500,000 is required, as well as a surety bond of USD 100,000 to cover winnings. Both amounts can be deposited directly or an agreement can be made with an insurance company, which will issue a swap for the specified amount. An annual insurance commission of USD 5,000 to USD 10,000 is charged for issuing such a swap.
- Additionally, a one-time fee of USD 1,000 must be paid for the registration of the web system.
Obtaining a Panama Gambling License
Step 6
- If all the steps are done correctly, your company will be able to legally provide gambling services in Panama with a Gambling License. However, even after obtaining a license, you will have to comply with the requirements of the regulator and ensure the transparency of the site.
Requirements for obtaining a Panama Gaming License
- Register a legal entity in Panama and enter it in the Public Registry of Panama.
- Have at least one shareholder and three directors (nominee directors may be appointed).
- Establish a physical presence in Panama, such as an office or call center.
- Pay a $50,000 license fee, $500,000 compliance guarantee, and $100,000 winnings guarantee.
- Provide monthly financial statements including deposits, wagers, and player account balances.
- Comply with AML/KYC standards, data protection, and fair play policies.
- Comply with regulatory requirements, including anti-money laundering measures, protection of minors, and responsible gambling.
- The majority shareholder or president of the company must have at least 5 years of experience in the gambling industry.
- Provide a certificate of no criminal record and proof of funding sources.
- The use of international servers is allowed, but their location must be declared to the regulator.
- The license covers both B2C and B2B activities, without the need for separate permits.
Gambling Lawyers in Panama
Position
Senior Associate, Business Development Manager (FX & iGaming)Phone
+372 5477 0344
Position
Senior Associate, Head of Sales (FX and iGaming)Phone
+372 5300 1858Explore more information about the Panama Gambling License
Overview of Gambling license in Panama
| License processing time | 1 month |
| License application fee | 40 000 USD |
| Minimum capital requirement | No |
| Tax on profit | No |
| Resident employee | No |
| Office requirement | Legal address |
Panama Gambling Laws
Panama’s first gaming regulation law No. 2 was passed in 1998, which legalized gambling enterprises in the country, regulated the issuance of licenses, and defined the powers of the Junta de Control de Juegos regulator.
Despite the amendments, the government decided to establish new legislation. Thus, Resolution No. 25 was passed in 2022, which legalized all online gambling in the jurisdiction. The resolution is aimed at the development of gaming activities, as companies working with residents of Panama or residents of other countries.
Main provisions of the legislation:
- Compulsory licensing
Operators must obtain a Panama iGaming License, which allows B2C and B2B activities without restrictions on types of gambling. License holders can offer online casinos, sports betting, poker, roulette, slot machines, and others.
- Presence in Panama
To obtain a permit, you must register a company in Panama and have a local presence, such as an office or call center.
- Financial transparency
Companies are required to pay government fees, file annual financial statements, ensure cash flow transparency, and prevent fraud.
- Protection of players’ interests
Operations are subject to strict regulations, including age restrictions (under 18 years of age gambling is prohibited), mandatory risk communication and responsible gambling programs.
- Compliance and crime control
Licensees must comply with Act No. 23 of 2015 aimed at combating money laundering (AML), terrorist financing (FT) and illegal financial activities. Companies are required to identify customers (KYC), track transactions and report to the JCJ.
- Regular audits
JCJ’s Audit Department conducts scheduled and unscheduled audits, assessing gaming operators’ activities, accounting records, and compliance with legal requirements. If violations are found, companies are required to make adjustments to their operations.
- Use of servers and cryptocurrencies
Local servers are not required, but official documentation of the location of the servers must be provided. The use of cryptocurrencies is not prohibited, but all accounting and tax calculations are done in U.S. dollars. In addition, operators can link cryptocurrency wallets to bank accounts if the bank allows it.
Taxation
Companies with a gaming license in Panama are subject to a 10% tax on gross gaming revenue (GGR). This tax is calculated monthly and must be paid in the first 10 days of the following month. At the same time, companies are required to submit a report to the regulator containing details of:
- the sum of all player deposits,
- the total amount of bets,
- the balance of funds on users’ accounts.
In addition, the following tax rates apply when distributing profits:
- 10% – on dividends received from income within Panama (20% if the company’s shares are issued to bearer),
- 5% on dividends distributed from income earned outside Panama or from export operations.
Companies operating outside Panama are exempt from corporate income tax if the income is not related to the economy of the country. However, all operators are required to maintain transparent accounting and comply with PANAMA GAAP or US GAAP financial standards, providing regular reporting to the regulator.
FAQ about obtaining a Panama gaming license
What is the gambling tax in Panama?
Licensed gambling companies in Panama are required to pay 10% of gross gaming revenue (GGR) to the state budget every month. There are also mandatory financial guarantees to ensure the stability and solvency of the operator.
Is it legal to gamble in Panama?
Yes, gambling is legal and regulated in Panama. Land-based and online operators operate under Law No. 2 (1998) and Resolution No. 25 (2022). The industry is overseen by the Junta de Control de Juegos (JCJ), which enforces standards of safety, fairness, and player protection.
How to Obtain a Gambling License in Panama?
To obtain a license, you must register a company in Panama, open a local office, appoint a minimum of three directors, and prove financial stability. The process involves submitting documents, paying fees, and approval from the JCJ, taking an average of 6-8 months.
What is the cost of a Panama Gaming License?
A Panamanian gambling license costs an initial license fee of $40,000, which is paid once. In addition, there is an annual license fee of $20,000 and license processing costs of about $10,000.
Timeline for obtaining a Gambling License in Panama?
Usually, this process of obtaining a Panamanian gambling license takes about 2-3 months. The regulatory authorities may request additional documentation if you have provided incomplete information.
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