Panama bans betting ads and introduces biometric verification on online platforms

Guest Contribution – Panama’s National Assembly has passed a law that significantly tightens regulations for the gambling industry in the country. The law introduces a complete ban on betting advertising, mandatory biometric verification on online platforms, and contributions to support the mental healthcare system. However, the new provisions have not yet taken effect. The bill is awaiting presidential approval, and only after the head of state signs it will the regulatory mechanisms take effect.

Ten percent of profits will be allocated to tackling gambling addiction

One of the central provisions of the new law is the requirement for operators to allocate 10% of profits to the Mental Health Institute’s fund. This measure is intended to ensure sustainable funding for programs related to the prevention and treatment of gambling addiction.

Panama has thus taken the path of directly reallocating gambling-industry revenues to social programs. A similar model is already used in a number of European jurisdictions, but for the Central American region it remains atypical.

However, its relevance amid the growing accessibility of gambling is undeniable. Today in Panama, it is possible not only to play on offshore sites licensed under international licenses, but also to download dedicated mobile applications. We confirmed this firsthand when we tried downloading several apps from well-known iGaming brands. We mainly focused on well-known games in the genres of arcade games, crash games, and live shows.  So we decided to look for it in these popularity rankings and found ice fishing game download apk – an app from the live-show online casino Ice Fishing. Along with it, we installed several more apps. And we had no issues.

Users from Panama really can do this without restriction and play at any time. For online casinos this is beneficial, but for users it always means heightened risks linked to gambling addiction.

Betting advertising under a complete ban

The law establishes an outright ban on the promotion of betting and gambling. All major communication channels fall under the restrictions:

• television,
• social media,
• sporting events,
• influencer channels.

In effect, operators lose the ability to legally advertise their services in the public sphere. This is a radical step, given that in many countries in the region, the sponsorship of sporting events by bookmakers remains common practice.

Biometrics as a barrier to underage users

Online platforms are required to implement biometric verification of users. The main purpose of this requirement is to restrict access to gambling for minors. Traditional age-check methods based on entering a date of birth or uploading documents have long proven vulnerable. Biometrics, as lawmakers intend, should become a more reliable filter.

Payment restrictions against a debt spiral

In addition to biometric verification, the law introduces new financial limits for players. They are aimed at reducing the risk of debt and supporting responsible gambling principles. The specific parameters of the limits have not yet been fully disclosed; however, the very fact that payment restrictions are enshrined in law underscores how serious the Panamanian authorities are.

Fines, license revocation, and criminal prosecution

A multi-tier system of sanctions is provided for violators. At the first level, this involves fines of up to 10% of gross revenue. More serious or repeated violations may lead to license revocation. In extreme cases, the legislation allows for criminal liability. This escalation of penalties is intended to prevent situations in which operators perceive a fine merely as a cost of doing business.

Lessons on the risks of gambling will be introduced in schools

Panamanian authorities also plan to introduce educational programs in schools. Special lessons will be devoted to the risks associated with gambling. This preventive approach complements the restrictive measures and is aimed at promoting informed attitudes toward gambling among the younger generation.

What will happen after it is signed

All of the measures listed will take effect only after the President of Panama signs the document. It is expected that the law’s entry into force will help create a safer environment in the gambling sector and significantly reduce the harm caused by gambling addiction, especially among young people.

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