General Summary of Resolution No. 11 of March 6, 2020: Regulation of Online Games of Chance in Panama

Resolution No. 11 of 2020, issued by the Panama Gaming Control Board, establishes the regulatory framework for the operation of online games of chance. This framework governs the licensing process, permitted activities, operator requirements, and the legal, financial, and technical obligations of companies operating in the industry.

Requirements for Obtaining a License

Companies wishing to operate online games of chance must meet the following requirements:

1. Legal Establishment:

• Be a legal entity incorporated in Panama.

• Have a legal representative residing in the country.

2. Technological Infrastructure:

• Servers and technological systems must be physically located in Panama.

• Systems must be secure and allow real-time monitoring by the Gaming Control Board.

3. Financial Solvency and Documentation:

• Provide evidence of financial capacity to operate, including audited financial statements.

• Submit a detailed operations plan that includes game rules, technical procedures, and security measures.

4. Compliance with Anti-Money Laundering (AML) Regulations:

• Implement policies and controls to prevent money laundering and the financing of terrorism.

• Register a Compliance Officer to monitor and report suspicious activities.

5. Fees and Payments:

• Pay application fees and comply with taxes required by Panamanian law.

Activities Allowed Under the License

The license allows companies to:

1. Operate Online Games:

• Games of chance such as sports betting, poker, virtual casinos, lotteries, and other games approved by the Gaming Control Board.

2. Advertising and Promotion:

• Advertise activities ethically and in accordance with local regulations.

3. International Service:

• Offer services to players outside Panama, as long as they comply with the laws of the destination country.

Obligations of Licensed Companies

Licensed operators must adhere to the following obligations to maintain their license:

1. Monitoring and Reporting:

• Provide the Gaming Control Board with real-time access to their systems.

• Submit periodic reports on operations, revenues, transactions, and taxes.

2. Player Protection:

• Player Registration: Implement processes to verify user identities and prevent minors from participating.

• Publish clear and accessible rules for all games.

• Provide tools such as self-exclusion options and betting limits to prevent addiction.

3. Data Security:

• Ensure the protection of players’ personal and financial data through robust cybersecurity systems.

4. Social Responsibility:

• Develop awareness programs to prevent gambling addiction.

• Implement measures to identify and assist players showing signs of addictive behavior.

5. Tax Compliance:

• Pay taxes on the revenue generated from online gaming activities. Tax amounts are calculated based on gross earnings.

Penalties for Non-Compliance

Failure to comply with the license provisions may result in:

• Administrative fines.

• Suspension or cancellation of the license.

• Legal action, including criminal liability, in cases of fraud or violations of anti-money laundering regulations.

Jurisdiction and Oversight

• Activities fall under the jurisdiction of Panamanian laws, and the Gaming Control Board has exclusive authority to supervise and regulate these operations.