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Gambling License in Panama

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Panama issues gambling licenses under Cabinet Decree No. 462, allowing companies incorporated locally to legally operate online gambling and direct services at international markets. The Panama gambling license covers casino games, sports betting, and poker — with no restrictions on serving players outside Panama.

Operational costs are low, taxation on foreign-sourced gambling revenue is minimal, and the licensing process is handled by the Panama Gaming Commission (Junta de Control de Juegos). For operators targeting a cost-effective, internationally recognized online gambling license, Panama remains one of the more practical jurisdictions outside the EU.

Panama

Why Operators Choose a Panama Gambling License

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    Favorable tax environment

    Panama applies a territorial tax system. Companies providing gambling services to clients outside Panama are exempt from local income tax, VAT, and withholding taxes. Profits from international operations are not taxed, as long as no bets are placed by Panamanian residents. There is, however, an annual licence fee and a fixed levy on gross gaming revenue.

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    Regulatory legitimacy and market access

    A Panama gambling license is recognized by payment processors, platform providers, and B2B partners across international markets. It provides the legal foundation operators need to negotiate contracts, open merchant accounts, and operate with documented regulatory standing.

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    Access to international markets

    A Panama gambling license permits companies to offer online gambling services globally, except in territories where local laws prohibit offshore gambling or specifically restrict Panamanian-licensed operators. Panama does not impose mandatory server location requirements, offering flexibility for hosting and technology choices and facilitating connections with international payment systems.

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    Privacy and data protection

    Panamanian law emphasizes confidentiality for both companies and individual stakeholders. Shareholders’ details do not have to be disclosed in public registries, and player data protection is enforced according to international standards, helping enhance user confidence.

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    Long-term and cost-effective licensing

    Online gambling licenses in Panama typically have a term of seven years, with the possibility of renewal. Fixed licensing and renewal fees are relatively predictable compared to some other jurisdictions.

Panama License Cost & Fees

Application Fees

The Panama Gaming Commission (Junta de Control de Juegos) charges a non-refundable investigation fee of $5,000–$10,000, paid at submission. Amount varies based on application complexity and ownership structure.

Initial License Fee

A one-time state fee of $40,000 is due upon license approval under Cabinet Decree No. 462. This covers the first year of authorized international operations.

Ongoing Annual Costs

The annual license renewal fee is fixed at $20,000. From year two onward. Operators must also account for local legal and registered agent representation in Panama.

Revenue Taxation

A fixed 10% levy applies to Gross Gaming Revenue (GGR). Under Panama’s territorial tax system, 0% income tax applies to revenue earned from foreign players.

How to Get a iGambling License in Panama

  • Step 01

    Incorporation and local representation

    • Incorporate a Panamanian company (Sociedad Anónima) under Law 32 of 1927 with at least three directors, typically taking 2–3 weeks.
    • Appoint a local legal representative (usually a law firm) registered with the Junta de Control de Juegos.
    • Prepare official corporate documents and open a local or international business bank account.
  • Step 02

    Preparation of documents and preliminary checks

    • Gather all documentation as listed above.
    • Run criminal background checks for all key people.
    • Prepare business plan and feasibility study.

    This stage usually lasts 2–4 weeks, depending on how quickly documents are collected and certified.

  • Step 03

    Application submission

    • Submit the complete application to the Junta de Control de Juegos (JCJ) through your Panamanian attorney.
    • Pay the non-refundable investigation fee (from USD 5,000 up to USD 10,000, depending on complexity).
  • Step 04

    Due diligence and review

    • The JCJ reviews all documents, performs due diligence, and may request additional information.
    • Investigation covers business model, funding sources, technical infrastructure, and AML/KYC compliance policies.
    • May involve interviews or further background checks.
  • Step 05

    License fee payment and issuance

    • Once approved, pay the initial license fee of USD 40,000 directly to the state under Cabinet Decree No. 462.
    • On payment, the official Panama gambling license is issued to the company.
    • Operators can begin offering licensed casino, sports betting, and gaming services internationally (but not to Panama residents).
  • Step 06

    Ongoing obligations and renewal

    • Pay the annual license renewal fee of USD 20,000 starting from the second year.
    • Keep AML/KYC compliance systems, technical controls, and regulatory reporting fully up to date.
    • Undergo regular regulatory audits and submit annual financial statements to the JCJ.
    • License renewal is required every 7 years; the renewal fee is USD 20,000.

Core Requirements & Documentation

Corporate Structure & Personnel
  • Applicants must incorporate a local Panama company (Sociedad Anónima) with a minimum of three directors of any nationality.
  • A local legal representative or resident director must be appointed as the official point of contact with the Junta de Control de Juegos.
  • A dedicated compliance officer is mandatory to oversee all AML and KYC obligations under Panama’s Law 23 of 2015.
Documentation & Background Vetting
  • Operators must provide technical certifications for server integrity, IT security, and data protection protocols.
  • All gaming software and RNG systems must be independently tested and certified by recognized laboratories such as BMM Testlabs, GLI, or eCOGRA.
  • A manual of internal control procedures must be submitted, detailing automated processes for customer verification . and transaction monitoring.
Technical & Software Standards
  • Operators must provide technical certifications for server integrity, IT security, and data protection protocols.

  • All gaming software and RNG systems must be independently tested and certified by recognized international laboratories.

  • A manual of internal control procedures must be submitted, detailing automated processes for customer verification.

Post-Licensing Support

Compliance Monitoring

We assist with regular internal audits and annual reports to keep your Panama gambling license in good standing. Our team helps you stay current with KYC/AML requirements and transaction monitoring obligations under the Junta de Control de Juegos (JCJ).

Legal & Tax Advisory

We provide ongoing guidance on Panamanian regulatory changes and territorial tax reporting under Panama’s territorial tax system. We help manage change-of-control notifications and provide support for contract drafting with local and international counterparties.

Banking & Payments

We support opening and maintaining international business accounts for gaming operators. We manage payment processor relationships and ensure AML compliance under Law 23 of 2015. Our team assists in securing settlement channels for both fiat and cryptocurrency flows.

Accounting & Audit

We handle bookkeeping and financial statements prepared to Panama gaming industry standards. We coordinate with certified Panamanian auditors to perform the mandatory annual reviews required by the JCJ.

Technical Troubleshooting

We manage ongoing software audits and integration of new certified gaming platforms. We maintain your IT security protocols and ensure RNG systems remain certified by accredited laboratories such as BMM Testlabs, GLI, or eCOGRA.

Marketing Compliance

We advise on permitted advertising channels and compliant promotional materials for international markets. This includes responsible gambling standards, geo-targeting restrictions, and player data privacy requirements under applicable jurisdiction rules.

What Operators Ask Before Applying:

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What types of online gambling does the Panama license cover?

The Panama gambling license allows you to operate all common forms of online gambling. This includes casino games, sports betting, poker, eSports, lotteries, bingo, horseracing, fantasy sports, Bitcoin casinos, and games of skill. With one license, you can offer multiple gaming products to international players.

Who can apply for a Panama gambling license?

Only companies registered in Panama as corporations under Law 32 of 1927 can apply. Your company must have at least three directors, but both shareholders and directors can be of any nationality. A local legal representative registered with the Junta de Control de Juegos is also required.

Can licensed operators accept players from Panama?

No, Panamanian law prohibits licensees from providing gambling services to Panamanian residents. All gaming activity must be targeted at international markets.

What are the main costs involved in obtaining and maintaining a Panama gambling license?

The state issues the license for a one-time fee of $40,000, with annual renewal at $20,000 from year two. Investigation fees paid to the Junta de Control de Juegos at submission range up to $10,000. A fixed 10% levy applies to gross gaming revenue (GGR).

How long does it take to get a Panama online gambling license?

Registering a Panamanian company usually takes up to 20 business days. Once your company and documents are ready, license processing by the Junta de Control de Juegos takes about 1 to 2 months.

What are the main compliance requirements for Panama gambling licensees?

License holders must maintain strong AML and KYC procedures under Panama’s Law 23 of 2015. You need to keep detailed transaction records, submit annual audits and financial statements, ensure proper game fairness, and respond to regulatory checks.

Is there any tax on gambling revenue earned outside Panama?

No, Panama applies a territorial tax system. Income earned from gaming activities outside Panama is not subject to Panamanian income tax, VAT, or withholding tax. However, there is a fixed 10% levy on gross gaming revenue.

Does Panama require servers or staff to be located locally?

No, there is no requirement for gaming servers or staff to be based in Panama. Operators have full flexibility on hosting infrastructure and technical setup location.

How long is the Panama gambling license valid?

The standard license is valid for 7 years and can be renewed by the Junta de Control de Juegos, with the maximum term reaching up to 20 years across renewal cycles.

What are common reasons for license application rejection or delay?

Applications are often delayed or rejected due to incomplete documentation, lack of a clear business plan, inadequate financial resources, or insufficient AML/KYC systems.

License Scope & Validity

  • Category Details
    Covered Activities Online Casino, Sports Betting, Poker, eSports, Lottery, Bingo, Fantasy Sports
    Initial Period Up to 7 years
    Extensions Renewals possible up to 20 years in total
    Sub-Licensing Permitted under master license (additional fees apply)
  • Stage Typical Duration
    Company Registration Up to 20 business days
    Application Processing  1 – 2 months (after full documentation submission)
    Total Setup Time Estimated 1.5 – 3 months

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