Gambling revenues continue slide
GAMBLING OPERATORS in Panama are blaming a government tax on a continuing fall in revenue although commentators have pointed to declining tourism figures and an overabundance of hotels operating at below sustainable occupancy rates.
The fall in gaming has dropped 11 months in a row.
In the first half of the year, the Gaming Control Board recorded wagers totaling $1.1 billion, representing a decline of 15 percent from the $1.3 billion bet in the same period of 2015.
The largest decrease was recorded in type A slot machines, which are those that accept multiple bets per spin.
In the first half of the year these machines handled $959.7 million in wagers, a reduction of $146.5 million.
This negative trend started in June 2015 when the government began to charge a tax on gambling to provide funds to finance an increase for retirees and pensioners.
Gambling operators said that the tax has affected business because it doesn’t tax winnings, but rather transactions. So if a person purchases $100 in chips and then loses $50, the person is charged a 5 percent tax on the $50 in chips the person cashes in.
The decline in gaming revenue has promoted layoffs in the industry reports La Prensa.
The Association of Gaming Managers has delivered a report to the government on the impact of the tax on the industry.
