Panama approves new gambling law with website blocking powers, player protection measures

Panama has enacted Law 527, introducing a new regulatory framework aimed at preventing and controlling problem gambling while granting additional enforcement powers to the country's Gambling Control Board. The Executive Branch has up to six months to implement the law.

The measure seeks to mitigate social risks associated with the rapid growth of digital betting, particularly among young people and minors. The law also classifies problem gambling as a public health risk.

New powers target unauthorized operators

Under Law 527, the Gambling Control Board may order restrictions against gambling websites, mobile applications, domains and IP addresses operating without a Panamanian license, including operators based outside the country.

The legislation also places obligations on telecommunications companies. Providers must implement blocking measures within five days of receiving an order from the regulator.

Companies that fail to comply may face fines of up to $1 million.

Compliance requirements for licensees

The law introduces a range of requirements for regulated online gambling operators.

Betting platforms must provide users with tools that allow them to establish financial and time limits on gambling activities. Operators are also required to issue automatic notifications when suspicious behavior is detected on gambling websites.

In addition, operators must implement biometric identification systems to verify users' identities and ages, with the aim of preventing access to online gambling services by individuals under the age of 18.

Land-based casinos will be required to install facial recognition systems capable of identifying individuals excluded by the Gambling Control Board.

The measure is intended to increase oversight, protect minors from gambling activities and help prevent gambling addiction.

Support for problem gamblers

Law 527 establishes a fund administered by the Ministry of Economy and Finance to support the treatment and prevention of gambling addiction through programs conducted by the Institute of Mental Health.

The fund will receive resources from annual revenues collected by the state from regulated gambling operators through fees.

The legislation also requires the Panamanian Gambling Control Board to conduct annual audits of digital gambling sites, betting platforms and casinos to verify compliance with legal requirements.

In addition, the Ministry of Health and the Ministry of Education must develop educational programs on gambling addiction and its negative effects for students in public and private schools.

Operators that fail to comply with obligations established under the law may face penalties ranging from $25,00 to $100,000. A second violation may result in doubled penalties and a temporary prohibition on conducting business.