Online Gaming Licensing in Panama and Its Pros and Cons
Here is a thorough guide that explores the benefits and drawbacks, costs, and requirements for obtaining an online gaming license in Panama if you are interested in entering the online gaming market and are considering making that country your base. Notably, Panama's precise Online Gaming Act has earned it recognition for its advantageous gaming laws, strategic geographic location, and cutting-edge infrastructure.
Recognizing the surroundings
The regulatory oversight of the gambling industry, including the granting of online gaming licenses, is the responsibility of the Panama Gaming Control Board, also known as the Junta de Control de Juegos.
Panama is a desirable location for online gaming companies because of its favorable legislation, tax advantages, and cutting-edge infrastructure.
benefits of a gaming license from Panama.
1. Benefits from a territorial tax system: Panama has one. This means that Panama-incorporated online gaming companies that operate outside of the country are exempt from paying income tax on their worldwide profits.
2. Protection from Breach of Confidentiality: Businesses and their owners are afforded a high degree of confidentiality by the Panamanian legal system, which also protects them from Breach of Confidentiality.
3. Global Operation: The geographic reach of the online gaming services is unrestricted by Panama.
4. Political and Economic Stability: Panama has a stable political and economic climate, which attracts online gaming companies.
Negative aspects of a Panama gaming license
1. Regulatory Obstacles: In order to obtain an online gaming license in Panama, one must deal with complex regulatory requirements that can be difficult to navigate without the help of an experienced attorney.
2. Limited Domestic Market: Panama may be a major hub for online gaming, but its domestic market is still quite small. The majority of Panamanian companies that offer online gaming mainly target foreign markets.
3. International Perception: Due to past issues with money laundering and transparency, Panama's reputation has suffered.
Your License: The Road to It
The first step is to establish a corporation in Panama. A newly formed corporation or one that has been registered abroad may be this.
Step 2: Application Submission: Following the establishment of a business, you must submit an application to the Panama Gaming Control Board with specifics about your business, its key personnel, and the games you intend to provide.
Step 3: Payment of Licensing Fees: After approval, pay the initial and annual license fees.
Step 4: Technical Evaluation: Following the payment of the fee, your online gaming platform will undergo a technical audit to determine its security and fairness.
Step 5: The Gaming Control Board will grant you a license if the audit results are satisfactory, which is step five.
As of my most recent update, the initial license application fee in Panama was $40,000. A further $20,000 annual license fee is charged. The costs associated with setting up and maintaining your online gaming system, as well as fees for legal and financial advice, are additional potential costs.
Systems for banking and payments
Panama-licensed online gaming companies typically have access to a wide range of banking and payment systems. Such businesses can open accounts and process transactions through a number of regional and international banks. In order to facilitate transactions with players around the world, your gaming platform can also be integrated with online payment platforms, credit card processors, and cryptocurrency payment gateways.
In conclusion, obtaining an online gaming license in Panama can be very advantageous for the right business, even though it involves regulatory complexity. Due diligence and professional advice are highly advised before starting this journey, as with all legal and financial endeavors.
Author: Pooyan Ghamari, Swiss Economist