Panama Online Gaming License
The Republic of Panama is the southernmost country of Central America. It is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. Panama is one of the biggest financial, merchant and transport centers in Latin America.
The gaming industry in Panama is controlled by the Panama Gaming Control Board (Junta de Control de Juegos), established in 1947. Gaming laws in Panama demand that gaming establishments give 80% of their profits to the government. The countryâs casinos were originally owned by the state, but were privatized in 1997. Most of Panamaâs casinos are the main attraction in large-scale casino resorts. Panama also licenses bingo halls and gaming machines outside casinos.
Panama adopted regulations governing the licensing of electronic games of chance and wagering activities in late 2002. The regulations allow master licenses to be granted that are valid for up to seven years upon payment of a license fee of USD $40,000. There is also an annual license fee of USD $20,000. Master license holders may grant sub-licenses, which are subject to the annual fee. Applicants must pay all investigation costs incurred in the processing of the application. Panamanian tax policies allow Internet gaming companies to operate essentially tax-free when accepting foreign wagers.
All Internet gaming companies within or hosted in Panama have to be registered under the online gaming act of 12 November 2002. The regulation allows for online international wagering.
Internet gaming companies domiciled in Panama enjoy complete tax exemptions. Customs duty concessions are given for imports needed to carry on Internet gaming. As long as the income made from Internet operations is from outside Panama, there is no income tax, withholding tax, sales tax or VAT tax. Offshore companies, such as on-line gaming companies are not subject to foreign exchange control.
Online Gaming Licensing Process
- The application process for the license usually takes from one to two months after providing all required documents.
- To ensure that all applicants have no criminal record and suitable references.
- To designate qualified applicants as to operating under the master license.
- To ensure that all software and specific games of chance comply with the strict regulations of the Panama Internet Gaming License.
- To collect all fees.
- To monitor game payouts and to make certain they are within acceptable worldwide standards.
- To make certain that a complete record of all transactions are available for inspection by designated officials of the Government or the license holder at any time.
- Compliance with national and international money laundering regulations.
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