Panama iGaming Market Research Report

Panama has now become a central market in Latin American iGaming; it has an excellent geographic location, a strong financial sector, and a progressive regulatory environment that attracts both local and international operators. Panama was the first jurisdiction recognised as a gateway to online gambling in Latin America, and it has many positives – political stability and state-of-the-art telecommunications, to name a few. While Panama had previously updated its laws to allow for online gambling, it was not until 2022 that it had made all forms of online gambling legal. As a member of the United Nations and World Trade Organisation, and as a member that is tightly regulated by international regulations with no gaming restrictions, Panama is in a strong position to be the pilot state for innovation and permitting and regulating the implementation of digital gaming.  

As innovations and technologies have already transformed iGaming worldwide, why would producers and owners not want to provide some technological methods in the area to play?  This advancement and growth will help push the development of iGaming forward in Panama, while the rapid increase in Internet penetration and adopting the latest and greatest gaming tech in the past couple of years puts the new generation of an emerging industry in a strong position for growth. Not only do producers and owners have an opportunity to grow a new industry, but both product partners and investors in Panama’s iGaming marketplace have an opportunity to monetise the potential increase of consumer interest through large fees and funding.

Table 1: Key Statistics

Market Overview

Market Growth and Size 

Panama’s online gambling market is experiencing rapid growth, bolstered by the regulatory environment, innovations in technology and increasing internet penetration. In 2024, the market is valued at approximately USD 1.79 billion, with estimates indicating significant growth to USD 4.89 billion by 2032, representing a compound annual growth rate (CAGR) of 13.3%. The growth is linked not only to Panama’s location in the region but also to strong support infrastructure and a more liberal licensing environment, which have created opportunities for both local and international operators. In addition, the availability of mobile devices and improved connectivity open the market to a larger and more diverse audience, including consumers in rural and historically underserved areas.

Table 2: Panama iGaming Market Size and Growth Forecast (2024–2032)

Major types of games available

The iGaming industry in Panama is quite dynamic. Players have a wide range of options to choose from. The most popular types of games include the following:

• Sports Betting: This segment of the market comprises the lion’s share, valued at $1.49 billion in 2024 and hitting $1.98 billion by 2031. Sports betting sites provide plenty of wagering options on football, basketball, baseball, boxing, and much more. Live betting and parlays also appeal to plenty of players.
• Casino Games: The most played games online are slot machines, and slots feature plenty of popular titles, including Book of Dead, Big Bass Splash, Wolf Gold, and Starburst. Table games such as roulette, blackjack, baccarat, and craps are also high in popularity. The popularity of the slots and the table games is further enhanced by live dealer experiences, which are extremely lifelike and invoke the atmosphere of traditional casinos.
• Poker: Both online and live poker are stable. With players preferring Texas Hold’em and Omaha poker, Panama is known to offer a great poker scene, like playing in major tournaments like the Panama Poker Challenge and offering daily cash games through places like the Venetian Casino and Panama City Poker Room.
• Bingo + Lotto: These games are still staples in the current market, fulfilling players who want a quick, fun, social gaming experience.

Table 3: Popular iGaming Segments in Panama (2024)

Demographics of Players

The iGaming audience in Panama is showing a young and increasingly diverse demographic profile. The Panamanian iGaming audience consists primarily of adults aged 18 to 35 and coincides with a global trend being experienced in digital entertainment adoption in general. Participation is fairly equitable between male and female participants, with men and women then participating in club casino, sports betting, and poker. 

On the whole, the insights are consistent that smartphones and tablets are ubiquitous, especially with younger participants, while the experience of staying with desktop platforms provides stability of access, in addition to functionality and features that generate the gaming experience. All things considered, the iGaming market in Panama is inclusive and dynamic in nature, and there is no stopping the growth potential as trends continue to accelerate with digital adoption. 

Table 4: Demographics of Panama iGaming Players

Regulatory Landscape

Overview of Existing Gambling Regulations

This article was updated on April 23, 2026.

Panama has established itself as a predominant jurisdiction for gambling regulation in Latin America, with a robust legal framework for comprehensive land-based and online gambling. Although some of these regulations are more recent and effective, the core element of Panama’s regulatory regime is Law No. 2 of 1998 (“Law No. 2”), which legalized gambling businesses and established the power of the Junta de Control de Juegos (JCJ) (i.e., the national regulator for gambling). Panama’s gambling regulation, starting with Law No. 2, has continued to develop through a number of key resolutions, such as:

• Resolution No. 65 (2002), which regulated electronic gaming;
• Resolution No. 92 (1997) established rules for slot machines and casinos;
• Resolution No. 25 (2022), which legalized all online gambling and allowed operators to target and serve consumers in both the local domestic market and international gambling markets for consumers.

In early 2026, the National Assembly approved Bill 403, a significant piece of legislation aimed at tightening oversight and addressing the rapid growth of iGaming. This bill introduced a mandatory 10% contribution from operator profits toward a mental health fund (INSAM) for treating gambling disorders.

The JCJ, on behalf of the Ministry of Economy and Finance, licenses, regulates, inspects, and supervises all gambling activity in Panama. The JCJ must be mindful to protect consumers, promote responsible gambling, and carry out effective anti-money laundering (AML) and know-your-customer (KYC) programs.

Licensing Requirements and Regulatory Bodies

To legally operate as a gambling business, it must have a Panama Gaming License that is issued by the JCJ. The steps involved in obtaining the license include:

• Registering an entity in Panama and having it recorded in the Public Registry.
• Have at least one shareholder, and three directors (a nominee is permitted).
• Establishing a physical presence in Panama, including office space or call center.
• A criminal background check, and proof of source of funding, operational or business plan, and financial information.
• Establish a safe, compliant, and trustworthy gaming platform while satisfying any AML/KYC, data protection, and fair play requirements. Under new 2026 regulations, biometric systems are now required to verify the age and identity of users to strictly prevent underage gambling.
• Payment of the following fees: $50,000 license fee, $500,000 assurance compliance fee, and $100,000 winnings compliance fee.
• Submission of monthly financial statements; and also be subject to real-time monitoring and inspections by the JCJ’s Audit Department.

Table 5: Licensing Requirements for Panama iGaming Operators

The license covers both activities in the B2C and B2B space, lasts for 7 years, and is renewable for $20,000 per year. The licensee can have international servers, provided the location is declared.

Details on Taxation and Compliance

There is a 10% tax on gross gaming revenue (GGR) for licensed operators. Additionally, under the legislation enacted in 2026, operators must contribute 10% of their net profits to the National Institute of Mental Health (INSAM). Operators are required to provide detailed reports on player deposits, wagers, and account balances. Tax on dividends from Panamanian income is subject to a 10% tax (bearer shares 20%) and 5% for dividends from foreign income. Licensed customers that only focus on international markets are likely exempt from local corporate income tax if the income is not related to the Panamanian economy. All operators must have transparent accounting in accordance with Panama GAAP or US GAAP and provide regulators with regular reports.

Table 6: Taxation Structure for Licensed Operators in Panama

Upcoming Changes in Legislation

In the past few years, we have seen a number of notable regulatory updates, most notably the removal of the unpopular 5.5% tax on gambling winnings in 2020. More recently, in 2026, Panama has implemented severe restrictions on gambling advertising. These new rules ban betting advertisements on traditional media, social networks, and sports platforms, and prohibit influencers or public figures from promoting such services. The JCJ has fully implemented its new electronic audit system to monitor gambling operations in real-time. Panama continues to refine its AML controls following its removal from the FATF grey list in late 2023, though it remains diligent in maintaining these international standards to stay competitive as a modern and safe jurisdiction.

Competitive Landscape

Panama’s iGaming market is exceedingly dynamic and competitive, comprised of a blend of local operators and international operators taking advantage of the regulatory environment and position of Panama. The market is fragmented, as there is no player dominating the market, which encourages innovation and differentiated products tailored to a wide range of players. 

Key Market Players

The international operators established in Panama are 22 BET, 1xBet, Megapari, SpinBetter and PalmSlots. The advantage for these operators is the ability to use Panama’s licensing regime to access local and regional markets with a large and expansive range of products, such as sports betting, online casinos, poker and bingo. Beyond these names, there are global brands which have continued connections in the marketplace (i.e., bet365 has a long-term contract in place with Inspired Gaming which helps deliver licensed games and technology solutions to their platform) and other operators.

There are also local operators which can access the market and gain market share. Not all local operators will implement technology; often they will introduce niche segments or localised content targeting specific Panamanian players. It is important to highlight that the number of licensed operators in the market is in the hundreds, which creates a form of our competitive or crowded environment driven by technology, user experience, and customer service.

Table 7: Key Market Players and Their Focus Areas

Market Share Distribution

While the precise numbers fluctuate over time and are publicly unavailable, the fragmented nature of the market suggests that even at the top-tier level, it is competitive enough for there to not be a single market leader. Sports betting has the largest share of market revenue, followed by the combination of online casino games and poker. The most market participation and growth are coming from the online gaming space, in particular with online gaming growing 48.1% in 2024 relative to 2023. As market competition heats up, there will be increased competition between operators to leverage this growing opportunity.

Partnerships and Strategic Alliances

Strategic partnerships between technology providers and operators of identical or similar products and services are prevalent. The relationship between Inspired Gaming and bet365 exemplifies this type of relationship between content providers and operators coming together to offer better products. The focus of other partnerships is to incorporate advanced technologies, such as live dealer games, VR and AR, into a more engaging product experience for players. Partnerships with payment solutions providers are also critical in Panama, where operators are able to provide their customers with secure, varied and focused payment options via digital wallets and cryptocurrencies.

Consumer Trends

In Panama, player behaviour is shaped by global and local influences. Online slots are a method of choice for many; however, table games are a strong choice. Sports betting remains preferred as a pastime for many players, with poker continuing to have a niche loyal base as a social and competitive platform. While many players are enthusiastic, there are some trends signalling their expectations in future gaming opportunities such as the growing enthusiasm for gaming on-the-go via mobile experiences, gaming with live dealers remotely, and attractions to immersive experiences like VR and AR technologies. 

Payment preferences are varied and include use of traditional payment methods (credit/debit cards, bank transfer) alongside digital wallets and cryptocurrencies, with cryptocurrencies being particularly attractive given the relatively open regulatory environment. Social and cultural influences like the tradition of the lottery and playing together as a community will still affect opportunities for participation, while the growing digital confidence of younger demographics will broaden gaming participation. 

Table 8: Payment Methods Popular Among Panama iGaming Players

Opportunities & Challenges

Growth Potential For New Entrants

• Market Access and Expansion: Due to Panama’s transparent licensing, low taxes, and excellent support systems for new operators and investors entering the market, there is a clear opportunity for new entrants. 
• New Technology: The development of mobile gaming, live dealer technology, and secure payment solutions offers further opportunities to differentiate and grow within this landscape. 
• Regional Hub: Panama’s regulatory structure and connectivity provide an opportunity to be a launch pad into other LATAM markets. 

Regulatory and Operational Challenges

• Regulatory Requirements: Ongoing careful investment and operational discipline will be required to meet the stringent AML, KYC, and audit obligations. 
• Competition from Unlicensed Operators: The presence of illegal operators risks consumer confidence and market standards. 
• Legislation: Operators will need to remain aware of the possibility of regulatory change in the future in the context of AML and consumer protection. 

Potential Innovations And Areas of Investment

• Game/promotion localisation: Differentiate how games and promotions developing in the West have a local appeal.
• Payment Options: As consumer preferences evolve, the payment ecosystem using digital wallets and cryptocurrencies will evolve, thus allowing the possibility of integration and expansion. 
• Gambling Responsibly: Invest in tools and education to protect players, thus meeting regulations and performance expectations, and build consumer confidence in the brand.

Conclusion & Recommendations

Panama’s iGaming industry is one of the most dynamic markets in Latin America and the most encouraging for potential investors, due to a forward-looking regulatory environment, rapid market growth, and the culture of innovation. So, it is a prime time for operators and investors to engage and take advantage of an expanding player base, technology innovations, and Panama’s position as a regional hub. 

Strategic Recommendations for Market Entry

• Ensure compliance with regulations: having strong AML/KYC systems in place and operating with transparency will meet JCJ standards and their expectation of a properly segregated deposit trust account with sufficient funds.
• Invest in technology: Mobile technology. Live dealer technology. Payment technologies. Think about where you can gain a competitive advantage and differentiate your station, products and offerings while enhancing player and gambler experience.
• Localise your content and marketing: consideration for local tastes and culture will improve engagement and retention of clientele.
• Be vigilant on the legislative front: Stay aware of regulatory developments to be well positioned for changes.

Future Outlook For the iGaming Sector in Panama

Overall, the outlook for the markets for iGaming in Panama is very bright, with projected double-digit growth likely for the foreseeable future, through 2032. Enhanced continued innovation, regulatory stability, and onwards growth in networks to support digital channels in the region are expected.

Data and Sources:

1. Polaris Market Research: Panama Online Gambling Market Size Worth USD 4,886.03 Million, April 2024
2. Research and Market: Online Gambling Market Report 2025
3. iGaming Business: Panama Gambling News and Analysis
4. Rue.ee: Panama Gambling License 2025 – Regulated United Europe

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