State Revenue (Panama)

Government revenues from licenses and taxes (Panama)

Resume Summary

The budgetary effect of the Panama gambling industry consists of royalties, periodic deductions from gross gaming income (GGR), taxes/fees on winnings and related payments (fines, duties, publications in Gazeta, etc.). Supervision and administration is carried out by the Junta de Control de Juegos (JCJ) under the Ministry of Economy and Finance (MEF), and the state-owned Lotería Nacional de Beneficencia (LNB) forms a separate, socially oriented revenue line.

1) Cash flow picture

1. 1. Licenses and Permits

Primary licensing fees for opening a casino/lounge/bingozal/bookmaker or for online activities.

Annual renewals and administrative fees (re-registration, change of address/list of games, platform audit, etc.).

Fines and sanctions for violations (often a tangible source of one-time receipts).

1. 2. State participation in GGR (offline)

For land facilities, there are regulated shares in gross gaming income (participación en los ingresos), which vary in types of venues and games.

Charged monthly based on site reporting and JCJ inspections.

1. 3. Online sector (iGaming)

A separate regulation for distance games provides for regular interest with GGR (Panama uses a fixed rate for online operators; the current size must be checked against the current version of the regulation and JCJ resolutions).

Additionally: contributions for domains, technical audits, certification costs (indirectly support state supervision).

1. 4. Lotteries (LNB)

The state lottery generates income through the distribution of circulation revenue: part - for the prize fund, part - for social programs and administration.

The lottery winnings themselves are subject to deductions, which are transferred to the budget in accordance with the relevant law.

1. 5. Other

Regulatory publications in "Gatseta," state fees for registration actions, AML/advertising fines, as well as court/admin fees in case of proceedings.

2) Who administers and how it works

JCJ (MEF): issues/renews licenses, approves operating rules, collects reports and payments, conducts inspections, applies sanctions. Online operators control monthly reports on GGR, deposits, rates, balances, etc.

Lotería Nacional: conducts circulations and transfers social contributions according to the built-in revenue distribution formula.

Tax authorities: accept related taxes (for example, corporate - on the principle of territoriality) and deductions from prizes where provided.

3) What different segments pay

3. 1. Land casinos and lounges

License/renewal + participation in GGR at rates depending on the format of the site and the list of games.

Target charges (e.g. for supervision/infrastructure) recorded in by-laws are possible.

3. 2. Bingo

License/permit + monthly reports and share with GGR bingo formats (paper/electronic).

Promotional draws with clothing prizes are issued in accordance with advertising standards and also fall into reporting.

3. 3. Bookmakers/betting shops

Permission + participation in betting margin income (GGR betting), reporting on coupons and calculations of winning tickets.

3. 4. Online operators

Fixed rate with GGR distance games (pay monthly).

Costs of content certification, log storage and integration for regulator access to data.

3. 5. Lotteries

Social mission: Part of the lottery revenue is initially allocated to charitable and public needs.

Lottery prize tax is withheld and transferred to the budget.

💡 Important caveat: specific rates, percentages and methodologies for each segment are enshrined in the current JCJ resolutions/rules and lottery laws; they should always be checked in the current revision because the settings may have been updated.

4) How it gets into the budget (simplified scheme)

1. The operator/site keeps track of turnover and payments, forms GGR (bets minus winnings).

2. On the basis of GGR, a share/fee (offline or online) is considered → transfer to state revenue.

3. Plus license/admin payments (primary and annual).

4. According to lotteries: part of the proceeds is distributed according to the social formula; prize tax is withheld and listed separately.

5. Fines/sanctions go as one-time receipts via admin lines.

5) Assessment of contribution: "calculator on a napkin"

A. Offline Casino

Visitors per month × average loss per guest = GGR offline (score)

Apply government interest (JCJ rate for this type of site) → offline proceeds

B. Bingo and the halls of the machines

Loading of places × games/hour × business hours × days × average rate × (1 − average RTP) → GGR bingo / slots

Multiply by the effective participation → receipt rate

C. Online

Active players per month × average dep/bet × (1 − average RTP) = GGR online

Multiply by iGaming Online Fee → Revenue Rate

D. Lotteries

Circulation revenue × distribution rate → part in social programs + tax on prizes → budget

Fold A-D and add licenses/renewals/penalties.

6) Nuances affecting the box office

Seasonality: holidays, carnival, cruise calls, MICE events in the capital.

Promo and tournaments: increase turnover and, accordingly, GGR (and payments to the budget).

Payment rails: the availability of USD cards, e-wallets and bank transfers reduces friction and maintains stable fees.

Compliance/AML: strict KYC and reporting reduce the risks of payment blocks and lost receipts.

Regulator updates: adjustments to participation rates, advertising rules and technical requirements change the dynamics of income.

7) Responsible play = sustainable earnings

Long-term predictability is important for the state: deposit/time limits, self-exclusion, transparent bonus rules, quick and verifiable payments reduce complaints and systemic risks - which means they stabilize the tax/licensing base.

8) Frequent Questions (FAQs)

Does the online sector pay corporate tax?

Panama has a territorial principle: corporate taxes depend on where income is generated. At the same time, a separate fee with GGR is used for distance games according to the JCJ regulations. The final tax burden depends on the structure of the business and requires consultation with a tax adviser.

Is there a separate tax on casino winnings?

The mode for lottery prizes is defined separately (withholding at the source). For offline/online winnings, conditions depend on the type of game and regulations in place; always check current site and JCJ rules.

How often are fees paid?

Standard - monthly reporting (offline and online). Licenses/renewals - according to the schedule specified in the permits.

Is it possible to "lay down" the numbers for the business plan in advance?

Yes, use the modular calculator in section 5, substituting conservative traffic/ARPU assumptions and current participation/fee rates for your segment.

9) What to check before publishing numbers

Current JCJ resolutions (participation rates by segment, online collection rates).

Recent changes in lotteries (structure of distribution of revenue/deductions by prizes).

Clarification of MEF/tax on the application of territorial taxation to your structure.

Government revenues from gambling in Panama are a system of regular and predictable payments: licenses and renewals, participation in the GGR ground segment, fiscal fees from online operators, as well as legislated deductions for lotteries. The key to the stability of revenues is transparent JCJ rules, high-quality compliance of operators and affordable payment channels. With a competent policy of supervision and digitalization of reporting, the budgetary effect of the industry remains stable, and the social mission of lotteries is visible.