Panama Advances Gambling Tax and Advertising Ban Law
PANAMA CITY, Panama. – Panama’s National Assembly has approved a bill imposing a 10% tax on online gambling revenue and banning advertising.
LISTEN TO THIS ARTICLE:The measure could raise compliance costs for operators and reshape how gambling services are marketed across the country.
The legislation, known as Bill 403 and advanced by deputies Raúl Pineda and Crispiano Adames, passed the Assembly and now awaits final signature from President José Raúl Mulino Quintero to become law. Lawmakers say the measures are designed to protect vulnerable groups and establish sustainable funding for treatment and prevention of problem gambling.
New Rules and Enforcement
If enacted, Bill 403 would require online gambling operators to pay a 10% levy on gross revenue. Funds collected will be channelled to the Institute of Mental Health (INSAM) to finance new treatment programmes and support the creation of a dedicated national centre for gambling addiction in Panama City. The measure is the most concrete financing mechanism proposed in recent regional policy discussions on gambling harm.
The bill also enacts an expansive advertising prohibition. Gambling-related promotion would be banned across traditional broadcast media, print, social media and sports sponsorships, and the use of celebrities or influencers to endorse gambling products would be prohibited. In addition, online platforms would be required to implement biometric identification tools aimed at preventing underage access, while payment methods would be restricted to limit rapid, high-frequency staking that can drive excessive losses.
Regulatory oversight will be the responsibility of the Gaming Control Board (Junta de Control de Juegos, JCJ). The JCJ would gain expanded surveillance powers, including real-time monitoring capabilities. Sanctions for non-compliance outlined in the bill include fines of up to 10% of an operator’s revenue, suspension of licences and, in serious cases, criminal proceedings against executives or operators who breach the rules.
Canadian Push for a Total Gambling Ad Ban Unlikely to Succeed
More Regulation
Implications for Operators and Public Health
Industry sources warn the new package could reshape market economics for both domestic and international operators serving Panamanian players. While the levy and advertising ban are intended to reduce harm, they will also raise operating costs and could force a recalibration of marketing and customer acquisition strategies.
From a public-health perspective, advocates welcomed the dedicated funding stream. "Creating a reliable mechanism to fund treatment and prevention is a major step forward for Panama", said a public-health specialist focused on addictive behaviours. "A 10% levy, if properly administered, could support outpatient services, training for clinicians and a national treatment centre. But funding alone is not enough – regulatory capacity and data-sharing will be crucial to translate resources into effective care."
At the same time, questions remain about implementation and privacy. "Biometric ID can be an effective barrier to minors, but it raises legal and technical challenges around data protection and cross-border operator compliance", said a digital-privacy analyst. "Operators, the JCJ and health authorities will need clear standards to avoid litigation and ensure user data is safeguarded."
Regional context underscores the trend: governments across Latin America have recently tightened gambling taxes and introduced new levies. Panama’s move follows changes in Brazil’s tax regime and recent consumption taxes enacted in Colombia, reflecting a wider policy focus on generating revenue for social programmes while addressing gambling-related harm.
Lawmakers also embedded education and prevention in the bill, proposing nationwide awareness programmes to be taught in schools and community centres. Supporters say this element aims to tackle problem gambling upstream by increasing literacy about financial risk and addictive behaviours among young people.
What operators should expect next: following the Assembly vote, Bill 403 requires the president’s signature to become law. If signed, the JCJ will begin rulemaking to operationalise levy collection, advertising restrictions and biometric requirements – a process likely to include transition periods and consultation with industry stakeholders. Operators with exposure to the Panamanian market should prepare for increased compliance obligations and potential technical investments to meet identity-verification and payment-control standards.
RELATED TOPICS: Regulation
Review this New Post
Leave a Comment
User Comments
Comments for Panama Advances Gambling Tax and Advertising Ban Law