Panama strengthens controls on online betting

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The Government of Panama has enacted a law to prevent gambling addiction and protect the most vulnerable groups. Law 527 of May 23, 2026 establishes stricter controls on casinos, digital betting platforms, and online operators.

The regulation recognizes gambling addiction as a public health issue and proposes mechanisms to mitigate the risks associated with the use of digital betting platforms, especially among minors and vulnerable individuals. 

The new law requires platforms to implement tools that allow users to set spending and playing time limits, as well as biometric identity controls.

On the other hand, casinos and Type A slot machine rooms must incorporate facial recognition technologies into their video surveillance systems to identify individuals excluded by resolution of the Gaming Control Board.

Another point worth highlighting is the strengthening of the Gaming Control Board’s powers to act against unauthorized operators.

Under the new legislation, the entity may order the blocking, suspension, or restriction of access to websites, applications, domains, and IP addresses linked to betting or gambling that operate without a license in the country.

Those who fail to comply with the regulation will face fines of up to one million Panamanian balboas (one million US dollars).

Fund for the prevention of gambling addiction

The law also creates a fund managed by the Ministry of Economy and Finance in favor of the Institute of Mental Health to finance care and treatment programs for people affected by gambling addiction.

The resources will come from 0.5% of the annual revenues that authorized operators pay to the National Treasury.

Likewise, the Gaming Control Board must conduct annual audits of casinos, digital platforms, and betting operators to ensure compliance with the regulation.

Finally, the legislation directs the Ministry of Health and the Ministry of Education to promote content on gambling addiction and the dangers associated with games of chance in official and private educational institutions. The goal is to integrate gambling addiction prevention as a fundamental part of education.

The Executive Branch has a six-month deadline to regulate the law.