Panama Accelerates Gambling Market Growth by 16.5% in H1 2026
Guest Contribution – Panama’s regulated gambling market delivered an impressive performance in the first six months of 2026. Total wagering volume reached PAB 1.61 billion ($1.61 billion), representing a 16.5% year-on-year (YoY) increase. The online segment and slot machines emerged as the primary growth drivers, while several traditional verticals recorded declines.
The pace of expansion in the Panamanian market compares favorably with a number of Latin American peers. Analysts attribute the acceleration to a continent-wide shift toward regulated mobile-first products: players are increasingly migrating to licensed applications and mobile platforms, reshaping the structure of the entire regional industry.
Winners and Losers Across Segments
The market picture is mixed. Among the segments recording growth, the following stand out:
- online betting, with growth of nearly 60% year-on-year (YoY);
- slot machines, which retain their position as the largest segment;
- table games and bingo, which posted moderate positive momentum.
At the same time, revenues from horse race betting, sports betting, and lottery sales all moved into negative territory.
Slots Hold Nearly 70% of the Market
Type A slot machines remain the backbone of Panama’s gambling industry. They account for $1.11 billion in wagers, or approximately 69% of the total market, with annual growth of 7%. The machines are installed in casinos and dedicated gaming halls under the supervision of the Gaming Control Board. The multiple plays per coin mechanic makes them more attractive than Type C machines, consistently securing slots’ dominant market share.
The online segment, meanwhile, has grown to the point where it now accounts for nearly one quarter of total wagering volume.
Online Gambling: From Modest Growth to a Sharp Acceleration
The online segment’s trajectory has followed a rocket-like trajectory. Growth remained moderate in 2024, a noticeable acceleration began in 2025, and H1 2026 delivered a surge of nearly 60% year-on-year (YoY). Regulated applications and websites are rapidly capturing the Panamanian player audience, transforming the digital channel from a secondary into a structural pillar of the industry.
The demand mix within the online segment is also shifting. According to search data and industry portals, Panamanian players are showing increasing interest in live dealer formats. Among specific titles, the fastest audience growth is recorded on Red Door Roulette live casino, as well as platforms featuring Dragon Tiger, Lightning Storm, and other game show formats from leading providers. Bonus rounds and multipliers are drawing audiences that previously favored land-based tables, and this migration largely explains the explosive growth dynamics of the digital channel across the region.
Post-Payout Financial Results and Revenue by Segment
A distinction between metrics is important here. Total wagering volume and net gaming revenue (post-payout) differ substantially. Net gaming revenue (post-payout) amounted to $194.8 million. According to Mundo Video, revenues were distributed as follows:
- slots generated $150 million;
- the online segment produced $221 million, up 40.4% year-on-year (YoY).
These figures reflect not the total wagering turnover, but the revenue portion retained by operators.
Lottery, Horse Racing, and Sports Betting Lose Ground
The National Charity Lottery (LNB) has been on a downward trend since 2024. In H1 2026, ticket and lottery sales declined by 4.1%. Horse race betting and sports betting also recorded decreases, forming an increasingly sharp contrast with the performance of digital and slot verticals.
The National Assembly Tightens the Rules
The National Assembly passed Law No. 527 and Bill No. 403, introducing a package of new measures:
- strengthened responsible gambling standards;
- mandatory biometric identity verification (KYC);
- advertising restrictions and prohibitions;
- mandatory contributions from operators’ profits to fund problem gambling treatment.
The country has officially recognized gambling addiction as a public health issue and has allocated budget funding for assistance programs. Additional safeguards for minors and vulnerable groups have been established. For smaller operators, however, the implementation of biometric technologies and the payment of new levies may represent a significant burden. The online segment is subject to heightened scrutiny due to money laundering risks and a rising number of suspicious transactions.
Tax Reform Bets on Tourism
The principal fiscal change of the year is the abolition of the 5.5% levy on casino and betting winnings. The measure is designed to attract foreign players and stimulate tourist inflows. Online operators, however, remain subject to a tax of 10% of gross gaming revenue (GGR). Authorities expect the reform to enhance the competitiveness of Panamanian casinos, increase hotel occupancy rates, and generate additional fiscal revenues through tourists’ indirect spending.
Over $350 Million Added in Two Years, but Growth Remains Uneven
Since 2024, the total wagering volume of Panama’s gambling market has grown by more than $350 million. However, performance across verticals differs markedly. Slots and online remain the unambiguous growth drivers, while lottery, horse racing, and sports betting continue to lose market share, creating an increasingly polarized industry landscape.
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