The legality of Panama's gambling

Legality of casinos, bookmakers and lotteries (Panama)

General overview

Panama is one of the few countries in Latin America where all major forms of gambling are legalized and regulated. The state considers the gambling sector as part of the tourism and financial infrastructure, providing strict control through specialized bodies.

The main regulator is the Junta de Control de Juegos (JCJ) under the Ministry of Economy and Finance (MEF), while the historic Lotería Nacional de Beneficencia is responsible for national lotteries and charity raffles.

1. Casinos: Fully legal under JCJ control

Casino operations have been permitted since 1998, when Decreto Ley Nº 2 came into effect. This law enshrined the JCJ's competence to license and supervise all forms of case games.

Casino format: usually at hotels or tourist complexes, with a limited number of slot machines and tables.

Licensing: private companies are issued licenses for a fixed period with the possibility of renewal; requires financial stability, accounting system, internal rules for AML/KYC and operator responsibility to JCJ.

Control: JCJ inspectors conduct regular audits and monitoring of technical systems, and financial reporting is subject to MEF verification.

Role in the economy: Casinos have become part of the tourism ecosystem - especially in Panama City and areas with business hotels.

2. Bookmakers and betting shops

Sports betting and racetrack betting are also permitted and regulated by the JCJ.

Main formats:

Sportbook - ground and online points with licensed operators.
Tote is a centralized horse racing betting system historically associated with the Presidente Remón racetrack (in effect since 1956).
Regulation: there are separate provisions of the JCJ on reporting and taxation of rates; licenses are issued on the basis of an application and financial guarantees.
Online betting: Allowed since 2002 (Resolución No. 65 JCJ) as long as the operator has Panama-certified servers and meets control and AML requirements.
Pools and interactive lottery products are also allowed in the country if they meet the JCJ criteria.

3. Lotteries: The oldest and socially significant form of gaming

Lotería Nacional de Beneficencia (LNB) - established by law Ley 25 of 1914, began work in 1919.

Primary mission: Fundraising for social, educational and health programs.

State monopoly: Only the LNB has the right to conduct official state circulations and draws.

In addition to paper tickets, digital formats and joint actions with JCJ are being introduced to combat illegal sales.

Transparency is controlled by a separate MEF audience and the National Audit Office.

4. Online gambling and its legality

Panama was one of the first in the region to legalize online gambling in 2002, adopting Resolución No. 65 JCJ, which set licensing terms for internet operators.

Allowed formats: casino, poker, bingo, sports betting, keno and games with a random number generator.

Requirements:

servers and backend must be physically located in Panama;
compliance with AML/KYC procedures;
incorporation in the jurisdiction of Panama;
regular financial reporting to JCJ.
On this basis, Panama has become a regional offshore for iGaming companies that serve international markets but are regulated by national law.

5. Sanctions and player protection

JCJ has the authority to suspend licenses, block equipment and impose fines for violations.

Illegal operators (without a JCJ license) are subject to criminal liability and asset forfeiture.

Responsible play tools are being introduced - self-exclusion, deposit limits, systems for warning problem gamblers.

To prevent fraud, the regulator cooperates with banks, payment processors and international auditors.

6. Ratio between public and private entities

JCJ is responsible for the entire commercial and private gambling sector.

Lotería Nacional is an autonomous state institution with a social mission.

Between them, interaction is built on taxation, advertising and combating the shadow market.

7. Taxes and budget revenues

Casinos and bookmakers pay fixed fees and interest on gross gaming income.

The lottery transfers part of the net profit to the social fund and the state budget.

Official MEF figures indicate that the gambling sector provides a steady stream of income and jobs in service, IT and tourism.

8. Legal framework (main documents)

1. Decreto Ley Nº 2 (1998) is the basic law governing gambling and creating the JCJ.

2. Resolución Nº 65 JCJ (2002) - regulation for online gambling.

3. Ley 25 (1914) - Law of Lotería Nacional de Beneficencia.

4. JCJ by-laws: regulations on licenses, technical standards, auditing and advertising.

In Panama, gambling is legal and systemically regulated. Casinos, bookmakers and lotteries operate within the framework of transparent licenses and tax reporting. JCJ provides control over the private sector, and Lotería Nacional remains a symbol of state social responsibility. With early digitalization and a stable legal framework, Panama has become one of the most predictable and open jurisdictions for gambling in Latin America.