Decreto Ley Nº 2 (1998), Panama

Basic Laws: Decreto Ley Nº 2 (1998) - Panama

What is this law and why it was adopted

Decreto Ley Nº 2 of 10 February 1998 is a basic regulation that restructured Panama's gambling regulator Junta de Control de Juegos (JCJ), anchored its functions, and defined key mechanisms for government control of "chance games" and betting. The law is published in Gaceta Oficial No. 23484 of 17. 02. 1998.

The official materials of the Ministry of Economy and Finance (MEF) directly formulate: Decreto Ley Nº 2 "restructures JCJ, gives it functions and introduces other provisions."

Key provisions (according to the text of the law)

1) JCJ authority

The law imposes on the JCJ the control, fiscalization, supervision and regulation of games of chance and all activities that generate bets (bets). This is formulated in norms that are often cited by the regulator when issuing by-laws.

2) Definitions and limits of regulation

JCJ received the right in each case to determine whether a particular product is a "game of chance" and whether it falls under the regulatory regime. This is important for the emergence of new formats (terminals, interactive games, etc.).

3) Licensing and Supervision

Decreto Ley Nº 2 laid down a framework for licensing gambling activities (casinos, gambling halls, betting/bookmaking, racetrack bets, bingo, etc.), as well as procedures for control, inspections and sanctions. Official consolidated versions and excerpts are available in PDF MEF and on legal portals (Justia/Legispan).

4) Institutional binding

JCJ operates under the Ministry of Economy and Finance of Panama (MEF) and through its Plenum issues resolutions and regulations for specific verticals (casinos, bets, online formats, etc.).

How the law "works" in practice

By-law regulation and evolution of norms

Based on the Decreto Ley Nº 2 authority, JCJ adopted regulations for different segments. An illustrative example is remote (online) games: the JCJ Plenum approved a special regulation Resolución Nº 65 of 25. 10. 2002, and later these provisions were updated and clarified (for example, in the 2020 resolution).

Decision practice and delegation

Decisions of the JCJ Plenary and delegation of individual actions (licenses, permits) are based on the articles of Decreto Ley Nº 2; relevant administrative procedures are publicly described on government portals.

Why Decreto Ley Nº 2 is' foundation'

1. A single regulator and clear powers: the law eliminated fragmentation and secured the center of responsibility in the person of JCJ.

2. Flexibility to new products: JCJ's right to qualify a product as a "game of chance" allows rapid coverage of innovation.

3. The legal basis for industries: it is on it that licensing regimes and control are built (including subsequent regulations for online games).

Structure of sources and where to read the text

Decreto Ley Nº 2 (Gaceta Oficial No. 23484, 17. 02. 1998) is available in legal act repositories (Justia/Legispan) and in MEF PDF publications.

JCJ/MEF official page with a brief description of the mandate and links to key norms.

JCJ by-laws (including online games) - in open PDF archives of MEF.

Decreto Ley Nº 2 (1998) is the cornerstone of gambling regulation in Panama. He created a modern oversight architecture, gave the JCJ broad powers and laid down mechanisms by which the country was able not only to systematize the offline market, but also institutionally open the way to online formats through the resolutions of the JCJ Plenum. For any analyst on the Panama market, this law is a starting point.

Note: for links to specific articles, see the official MEF PDF publication (including article 9 on JCJ powers) and consolidated versions on Justia/Legislan.