The country faces reputational risks associated with a history of money laundering and Panama's presence on the EU tax 'grey list.' The domestic gambling market is small, so most companies focus on foreign audiences.
Requirements and the licensing procedure A license can be obtained only after completing several stages: • Registering a legal entity in Panama • Appointing a local director residing in the country • Setting up a physical office and opening a corporate bank account with one of Panama's banks • Preparing a business plan and financial documents • Developing software in line with JCJ standards (for example, player geolocation tracking systems and financial flow controls) • Payment of government fees of $40,000 The application review period is typically two to three months. Online operators are subject to additional technical requirements.
The concept of a 'gambling license' includes both authorization for traditional casinos and for online business, including sports betting and poker.
Advantages of registering a gambling business in Panama Operators can highlight several key advantages. According to specialist consultants, Panama is becoming the optimal choice for offshore companies and those who want to scale a business with minimal costs.
'Are you ready to entrust the growth of your gambling business to Panama, taking into account all the pros and cons of this jurisdiction?'
Why does business choose Panama, and what challenges does it face on the way to obtaining a license? Does this country really meet the expectations of those who want to operate in the global gambling market?
Panama as an international hub for the gambling business Panama City has long been known for its openness to foreign investors. As representatives of international consulting firms note, Panama is often seen as an alternative to traditional European jurisdictions due to the simplicity of procedures and the flexibility of regulation.
Limitations and risks for companies However, a number of limitations arise on the path to success. Experts believe that Panama is gradually becoming one of the notable gambling hubs in Latin America. Panama not only attracts traditional casinos but is also becoming a magnet for startups in the online entertainment sector.
The Panamanian license is still relatively unknown among players, especially from Europe and Asia, which may affect trust in new brands.
Regulator and legislation: who sets the rules and how The main supervisory body is the Junta de Control de Juegos (JCJ). This institution has existed since 1947 and is responsible for issuing licenses, overseeing operators, and ensuring compliance with security standards.
Law No. 2, adopted in 1998, became the key regulatory act authorizing the operation of casinos and other gambling establishments. As part of regulation, the JCJ sets technical and financial criteria that all licensed operators must meet. The JCJ regularly verifies companies’ compliance with security standards.
How to set up a company for a gambling business To register a business, a Sociedad Anónima is most often used—a legal entity form that allows foreigners to own 100% of the shares. This structure provides shareholder confidentiality; however, opening a bank account will require disclosure of information.
The process includes choosing a company name, registration in the public register, obtaining an operating permit from the Ministry of Finance, and opening a corporate bank account. Usually, all stages can be completed within a few business days if the documents are prepared.
Comparison with other jurisdictions Panama competes with countries such as Curaçao, Malta, the United Kingdom, and the Isle of Man. In Curaçao, the licensing process is simpler; however, the level of oversight is lower. We learned this after a brief review of licenses on the websites and in the apps of popular iGaming brands. Among well-known examples are startups that want to enter the market quickly without spending on complex procedures.
Advantages of the jurisdiction First, income earned outside Panama is exempt from taxation. Second, the license term is seven years, which makes it possible to build long-term plans and avoid having to renew the permit constantly. A third advantage is the ability to use one license for different business formats: from online casinos to sportsbook platforms.
A developed banking system and modern communications make it easier and faster to launch a business. This is especially beneficial for companies targeting international markets. Thanks to this, international companies can serve customers from different countries without facing technical limitations.
According to the Junta de Control de Juegos (JCJ), the number of licensed operators is steadily growing, and the share of online gambling increases every year. Operators from all over the world are paying attention to this jurisdiction, hoping to gain competitive advantages.
Who Panama’s license is suitable for: practical cases The Panamanian license is mainly chosen by international projects focused on customers from Latin America, Asia, and Africa. In 2002, the country introduced a separate regulation for online gambling for the first time, and in 2022 the legislation was supplemented with new requirements for electronic platforms.
Its geographic location at the crossroads of North and South America, a stable political environment, and a developed banking system make the country attractive for launching a business. This country's modern telecommunications infrastructure, which is especially important for operators’ remote operations, is also a plus.
Limitations and reputational risks However, for now the number of licenses is low compared with Curaçao. We reviewed casino apps to play Aviator and checked the licenses of the first ten listings. We still did not find Panama among them. The basis was lists of platforms with the most popular titles, such as Aviator, Jet-X, and other crash games.
The country faces reputational risks associated with a history of money laundering and Panama's presence on the EU tax 'grey list.' The domestic gambling market is small, so most companies focus on foreign audiences.
Experts point to the JCJ’s stringent approach: operators are required to regularly submit financial reports and comply with all player protection requirements. Great importance is attached to anti-money laundering measures, as well as the transparency of financial transactions.
Comparison with other jurisdictions Panama competes with countries such as Curaçao, Malta, the United Kingdom, and the Isle of Man. Malta and the United Kingdom offer stricter standards, but also higher costs—fees can reach €50,000, and reporting requirements are much more stringent.
Panama benefits from the long license term, a low barrier to entry, and flexible regulation, although it lags in recognition. Before making a final decision, it is worth carefully studying not only the legislative aspects but also current market trends in order to make a choice that will help build a sustainable and profitable company.
