Panama

Panama adopted its position as a licensing jurisdiction in late 2002, following enactment of new laws by the Panama Gaming Control Board, founded in 1947. As part of the Online Gaming Act 2002, Panama Gaming Control Board extended licensing opportunities to foreign service providers for the first time. Offshore internet gaming providers enjoy complete exemption from corporate and profit taxes on capital gains from foreign wagers, however those resident/ formed within the jurisdiction must still hand over 80% of their profits to the Government, regardless of services provided.

Panama Gaming Control Board have little changed legislation in nearly a decade and are regarded one of the world's most thorough for applicant vetting and regulation. Presently, offshore providers need not be incorporated within the jurisdiction to apply for an Online Gaming Permit, however, there have been recent murmurings of plans to change this to a prerequisite for qualification. PGCB offer a single licensing product for both sole traders and corporations, at a cost of $40,000 for the first 7 years. An interim review will be conducted shortly before expiry to determine whether the company may extend its license, realizing a further fee of $20,000.

PGCB welcome applications from developing companies, although tend to look more favorably upon those with a well-established heritage and reputation. Like most regulatory bodies, PGCB conduct a number of audits and Due Diligence investigations prior to issue of any license, therefore its key to include a business proposal, statement of accounts and complete overview of software platforms, security measures and RNG (Random Number Generation) Software intended for use, in accompaniment of the initial application. PGCB may serve an official 14-day request for further documentation, including police/ character references and tax statements, should the provider have been previously active in one or more offshore jurisdictions.

From application to review, one can expect to wait no longer than 6 weeks. In some cases, PGCB may extend this while all Due Diligence Investigations and documentation requests are fulfilled. Prior to license issue, all applicants must submit confirmation of an account set aside solely for winner payouts. Obtaining a license under the jurisdiction of Panama is a relatively clear-cut process, however, many commercial brands have been disinclined to move their interests, due to an overwhelming level of paperwork involved.