Panama Online Gambling Regulation

After being shut out of the U.S. market last year with the Unlawful Internet Gambling Enforcement Act (UIGEA), companies such as UK's Partygaming (PRTY.L) and Austria's Bwin (BWIN.BE) continue operating legally, even getting funds from investors in the London Stock Exchange and looking forward to customers in emerging markets of China and India. Representatives Barney Frank and Ron Paul introduced H.R.5767 which would stop its implementation but approval will not discourage others doing business outside of the U.S.

The Inter-American Trade Report, October 2003, has a short summary of the regulation for online games in Panama.

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PANAMA: Online Gambling Regulation

Panama regulated online gambling operations this past February via Resolution 065 of the Games Control Board (Junta de Control de Juegos). Although under the Constitution gambling is a state monopoly, local jurisprudence has upheld the power of the State to grant concessions to operate said activities on its behalf to private companies. Online casinos would be exempt from Panama income taxes, since Panama taxes only local-source income and the Regulation allows online transactions only with users from outside of Panama.

Online gambling operations must prove economic solvency and previous related experience, and upon granting of the license must pay a US$10,000 fee and a yearly US$20,000 license.

Operators must comply with money-laundering regulations and notify the Financial Analysis Unit of any suspicious transactions above US$10,000. An account must be maintained to guarantee payment to winners. Infringements are subject to a fine ranging from US$1,000 to US$50,000.

By Alvaro Aguilar
Gaceta Oficial, Feb. 3, 2003
http://www.natlaw.com/panama/topical/ec/ecomm.htm

Keywords: online gaming, casino, gambling