Panama's gambling history

History of gambling in Panama

Panama is the transport and financial hub of Latin America. Its gambling ecosystem developed at the intersection of charity lotteries, horse racing and hotel casinos, and in the late 1990s moved to a modern regulatory model with independent supervision and licensing of the online segment.

Early forms: charity lottery and city raffles

The first institutionalization of gambling is related to the social agenda. On December 5, 1914, Ley 25 was adopted, according to which the state took over the management of Lotería Nacional de Beneficencia; the net proceeds went to charity, schools and hospitals. Ticket sales began in 1919 - this format remained the "legitimate face" of games in the country for decades.

Era of horse racing: From Juan Franco to Presidente Remón

Horse racing became a mass entertainment in the middle of the 20th century. The modern metropolitan hippodrome Presidente Remón has been operating since 1956 and is considered the center of the Panama turflet - world-class jockeys are trained here, and the facility itself regularly hosts regional events.

Course for modernization: 1990s

Until the 1990s, traditional forms of leisure (lottery, hippodrome), gaming halls and casinos at hotels coexisted in the country. The "big turn" occurred in 1998, when Decree Law No. 2 of February 10, 1998 was adopted. Document:

determined the basic principles of regulation of games, consolidated the powers of the regulator, laid the foundation for the privatization of the gambling sector and the transition to a system of licenses.
Control is carried out by the Junta de Control de Juegos (JCJ) under the Ministry of Economy and Finance.

💡 In practice, it was 1998 that became a watershed: casinos and gaming halls are switching to transparent rules, compliance is increasing, and a "showcase" for private investors appears.

The emergence of the online segment (since 2002)

Against the backdrop of a telecom breakthrough in the early 2000s, Panama was one of the first in the region to formally open a channel for remote (online) licensing. In 2002, norms were introduced that allow licensing of Internet operators and establish requirements for platforms, payments and reporting. This cemented Panama's status as iGaming's "entry point" for Latin America.

Industry in the 2000-2010s: hotel casinos, sports betting, control systems

Casinos at hotels in Panama City and tourist areas have become part of the MICE- and entertainment offer along with shopping centers and gastronomy.

Sports betting and racetrack vertical have been integrated into a single JCJ oversight system with a focus on transparency and player protection.

The regulator develops audit, technical certification and AML/KYC practices, maintaining a balance between investment attractiveness and risk control.

Regulatory Architecture: How Governance Works

Junta de Control de Juegos (JCJ) - licensing, control, interpretation of the list of "games of chance" and requirements for operators (up to a decision on each type of game).

Lotería Nacional de Beneficencia is a separate historical institution with its own social mission and distribution of income for charity.

Social and economic contours

Historically, the lottery has funded social programs; horse racing formed a sporting identity and a "lift" for talented jockeys; casinos gave tourism an "urban" dimension. Since the late 1990s, the industry has become a notable contributor to employment, taxes and the influx of tourists, and in the 2000s, the online sector added the export of digital services (hosting, support, compliance).

Milestones (timeline)

1914 - The state institutionalizes Lotería Nacional de Beneficencia (Ley 25).

1956 - Presidente Remón Racetrack opens in Panama City.

1998 - Decree-Law No. 2: modernization of regulation, formalization of the powers of the JCJ, privatization of the sector.

since 2002 - the launch of online licensing and rules for remote gaming; Panama becomes iGaming's regional gateway.

Panama's path is an evolution from charity lotteries and horse racing to a flexible, invested model with professional supervision and an online vertical. The 1998-2002 decisions set a course that still defines the face of the industry: a combination of tourist casinos, a developed racetrack, a sustainable lottery, and export iGaming content overseen by JCJ.

Note: Laws and dates are based on official materials from the Ministry of Economy and Finance (MEF) of Panama and the historiography of the lottery/hippodrome; for a detailed study of the regulatory framework, see the text of Decree-Law No. 2 of 10. 02. 1998 and JCJ publications.