In October of 2002, Panama began offering internet gaming licenses to interested parties wishing to operate within their jurisdiction. Every internet gaming company registered within or hosted inside of Panama must be registered under the Online Gaming Act of 2002.

This regulation allows for international wagering to take place online. The official currency of all entities operation within the jurisdiction of Panama is the USD, and no online gaming companies are subject to foreign exchange control.

The jurisdiction of Panama offers a standard US infrastructure and all the necessary resources at nearly half the cost. Being so close to the US, Panama has ready access to multiple broadband networks.

Panama's legislation was a long time in the making. The small Republic of Panama has always had an economy that thrived due in part to their close proximity to the United States. While the rest of the world was moving toward the digital world to boost profits in the late 90s and early 2000s, Panama still relied mostly on tourism and local goods.

Hosting gambling via the web wasn't high on the priorities list. However, casinos and gambling have been a big part of the culture for some decades now. Panama hosts legal gambling and has 36 gambling houses available to the public. Casinos, horseracing, and pari-muteul are all legal in the country, as well as many bingo houses. It was only a matter of time before they began to offer online licenses to operate within their jurisdiction.

The jurisdiction of Panama closely regulates all gaming sites and companies operating with their approved license. They ensure that all software used and all specific games of chance meet the strictest of standards and regulations. All games must be fair, and all winnings must be paid to the player.

Panama authorities may monitor all games to make sure they're operating under acceptable standards. Panama will keep a complete record of every transaction made, and all transactions and records are subject to inspection via designated officials of the Panamanian government or the government of the license holder.

Panama doesn't hand a license over to just any person or corporation applying. All applicants must meet a strict set of criteria based on the 2002 regulations. Application processing can take anywhere from a few weeks to two months or more, only after all necessary documentation is filled out and submitted. Applicants must have no criminal record and must provide multiple credible references.

A Master License is granted to successful applicants, and it's valid for a period of seven years. The license fee is $40,000 USD, and the annual fee is $20,000. Any holder of a Master License may grant sub-licenses, which are all subject to an annual fee. All research and investigative costs must be paid by the applicant.

Internet gaming companies with a Panamanian license operate with a slue of tax exemptions. Tax laws of the license holder's government are not the responsibility of the Panamanian government.

Licence Fee
$40,000 plus $20,000 annually.

Licence Length
7 years.

Contact Details
La Junta de Control de Juegos

Avenida Perú,
Calle 35 Este,
Edificio antiguo “Hacienda y Tesoro”
Panama City
Panama

The Gaming Commission (Junta de Control de Juegos) is part of the Ministry of Economy and Finance. Telephone numbers provided are:
Economy: (+507) 507-7000 (+507) 506-6600
Finance: (+507) 507-7600