Panama tightens gambling rules after Bill No. 403 is approved

Guest Contribution – Panama’s National Assembly has approved Bill No. 403, which significantly changes the operating rules for land-based and online gambling operators. The initiative emerged amid the rapid growth of the online gambling market in the country. The document was authored by lawmakers Raúl Pineda and Crispiano Adames.

The key goal of the new package of measures is the prevention of gambling addiction and the protection of vulnerable groups. The bill enshrines a responsible gambling approach, extending uniform and stricter standards to all forms of gambling, whether casinos or online betting platforms.

10% of profits will go toward tackling gambling addiction

One of the central innovations is a mandatory 10% contribution of profits from gambling venues and operators to the Instituto de Salud Mental (INSAM), the national mental health institute. The funds collected will be directed to specific tasks:

• treatment for patients diagnosed with gambling addiction;
• establishing a specialized center for gambling-related disorders.

In effect, the government has recognized problem gambling as a public health issue and backed that recognition with a financial mechanism.

Biometrics instead of an “I’m 18” checkbox

The bill explicitly prohibits minors from participating in any form of gambling. To enforce this ban in the digital environment, mandatory biometric identity verification is provided for users of online platforms. The technology is intended to replace token age checks that are easy to bypass.

This approach puts Panama among the countries that have opted for technological barriers rather than declarative rules.

Betting ads disappear from screens, social feeds, and stadiums

The new rules ban advertising for gambling and betting through traditional media, social media, and in sports settings, including events and broadcasts. Promoting such services through influencers and public figures is spelled out as a separate provision and is also prohibited.

Notably, sports betting in Panama continues to grow in popularity, and it is not only about the region’s traditional favorite, football (soccer). An analysis of statistics from major betting platforms such as Parimatch, Melbet and Pin Up shows rising interest in disciplines less common in Latin America, including chess, curling and even cricket. According to data provided by online cricket Pin Up app, betting on this sport has been increasing for several months in a row. 

Such a diversification of bettors’ sporting preferences only underscores why Panamanian lawmakers are seeking to cover as broad a range of betting activity as possible with regulation, without limiting it to casinos alone.

Junta de Control de Juegos receives expanded powers

Oversight of compliance with the updated legislation has been assigned to the Junta de Control de Juegos (JCJ), Panama’s gambling regulator. The agency will be equipped with modern technological tools to monitor the industry’s operations in real time.

A tiered system of penalties is provided for violations of the new rules:

• a fine of up to 10% of the operator’s revenue;
• license suspension or revocation;
• criminal prosecution in cases provided by law.

Payment restrictions and lessons in schools

Another notable measure concerns the financial protection of players. The bill limits the payment methods operators may offer users. The goal is to reduce the risk of over-indebtedness and financial harm for people involved in gambling.

In addition, Panama plans to include educational courses in the school curriculum about the risks associated with gambling. Prevention from an early age is becoming part of the state’s responsible gambling policy.

The final say rests with the president

Despite approval by the National Assembly, Bill No. 403 has not yet taken effect. For that, the signature of the President of the Republic of Panama is required. If signed, the document will mark one of the most sweeping reforms of gambling regulation in the country’s history.

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