Panama - offshore for iGaming

Panama as an offshore for gambling business

1. Historical context

Panama is one of the oldest offshore financial centers in Latin America. Since the 1970s, the country has been developing a liberal corporate system convenient for international companies: quick registrations, currency freedom, confidentiality of beneficiaries and the territorial principle of taxation.

In the late 1990s, with the adoption of Decreto Ley Nº 2 (1998) and the creation of Junta de Control de Juegos (JCJ), Panama extended these principles to the gambling industry, becoming one of the first offshore hubs for online gambling in the region.

2. Why Panama is attractive to operators

Simplified corporate structure

Registration of the company (Sociedad Anónima) takes several days.

Minimum requirements: one shareholder and director, capital from 10,000 USD (not always required to deposit).

100% foreign ownership allowed.

Territorial taxation

Taxes are levied only on income earned in Panama.

Online operators targeting overseas markets are not subject to corporate external income tax; instead pay a fixed JCJ fee (10% GGR) under the 2020 resolution.

This model makes the country a de facto offshore zone for the iGaming business.

Transparent licensing

Regulation of online games introduced in Resolución Nº 65 (2002), updated Resolución Nº 11 (2020).

Licenses are issued by Junta de Control de Juegos (JCJ), a structure under the Ministry of Economy and Finance.

Requirements include platform technical certification, AML/KYC policy and monthly reporting, but the process remains relatively simple and predictable.

Political stability and banking infrastructure

Panama uses the U.S. dollar as its national currency, which eliminates currency risks.

The country has a stable banking sector integrated into international payment systems.

Gambling companies can open corporate accounts if they comply with JCJ and banks' compliance requirements.

3. License acquisition mechanism

1. Incorporation in Panama.

2. Applying to JCJ with capital sources, business model and technical systems.

3. Checking the operator for AML/sanctions bases.

4. License issuance and domain name/platform registration.

5. Monthly reports on sales and payments.

💡 Unlike Malta or Curaçao, Panama's license is less formalized and cheaper to maintain, making it especially attractive for B2B operators, hosting platforms and content providers.

4. Privacy mode

The law allows for nominal directors and shareholders.

Disclosure of beneficiaries is only required for banks and JCJs, but is not published.

Panama has signed FATCA and CRS agreements, but information exchange is limited to licensed banks and government agencies.

This provides a reasonable balance between transparency and confidentiality necessary for compliance operators.

5. Comparison with other offshore companies

Indicator	Panama	Curacao	Costa Rica
License	State (JCJ)	Private masters	No licensing
Online gambling	Allowed since 2002	Since 1996	Not regulated
Taxes	10% GGR + Territory System	2-6% GGR (by structure)	0%, but outside the legal field
AML/KYC	It is required	Minimum	Informal
Reputation	Medium-to-high	Average	Low
Suitable for	Compliance operators, providers	Startups, white label	Unofficial operators

Panama occupies a "middle niche" between classic offshore and regulated EU jurisdiction, combining transparency and low barriers of entry.

6. Limitations and risks

Reporting requirements: monthly reporting in JCJ on GGR and user activity.

AML control: banks require detailed justification of sources of funds and business model.

Image risks: After Panama Papers, the country is gradually strengthening tax information exchange and compliance.

Resident restrictions: Local players are not allowed on Panamanian licensed sites (benchmark - export market).

7. The economic importance of the offshore sector

Gambling companies with a JCJ license bring stable revenues: according to MEF estimates, from 10 to 15 million USD per year of taxes and fees.

The online sector provides jobs in IT, auditing, legal and fintech services.

JCJ's license has become a brand reinforcing Panama's reputation as a financial and technological hub of Latin America.

8. Prospects

Digitalization of licensing (electronic statements and reporting dashboards) is expected.

Possible reduction of barriers for B2B operators and content providers.

Joint initiatives of MEF and JCJ to strengthen AML compliance - to increase trust from international partners.

In the long run, Panama seeks to become a "responsible offshore" - combining low taxes, JCJ control and a reputation for trustworthy jurisdiction.

Panama is one of the most convenient and balanced offshore zones for gambling businesses: low taxes, understandable JCJ licenses, a stable economy and access to dollar infrastructure. Unlike the "gray" zones, Panama offers a legal, regulated and predictable regime where offshore status is combined with real jurisdiction and compliance with international standards.

Panama's main formula for success:

offshore flexibility + state JCJ license + political stability = sustainable iGaming hub in Latin America.