This comprehensive guide provides detailed insights into the process of obtaining an online gaming license in Panama, focusing on the advantages and disadvantages, associated costs, and necessary steps. If you are considering establishing your online gaming business in Panama, this guide explores the country”s advantageous gaming regulations outlined in the Online Gaming Act, its strategic geographic location, and modern infrastructure. By following the steps outlined in this guide, you can effectively navigate the process of obtaining an online gaming license in Panama.
Recognizing the surroundings.
The Junta de Control de Juegos, also known as the Panama Gaming Control Board, is in charge of regulating the gaming industry and issuing licenses for online gambling.
Panama is a desirable location for online gaming companies because of its favorable legislation, tax advantages, and cutting-edge infrastructure.
Positives of a Panama gaming license.
1. Benefits from the territorial tax system that Panama uses. 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 of Confidentiality: The legal system in Panama provides significant privacy protection to businesses and their owners, keeping their identities hidden from the general public.
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.
A drawback of the Panama gaming license
1. Regulatory Obstacles: Obtaining an online gaming license in Panama requires navigating complex regulatory requirements, which can be difficult without the right legal representation.
2. Limited Domestic Market: Panama is a major online gaming hub, but its domestic market is only moderately sized. The majority of Panamanian online gaming businesses mainly serve foreign markets.
3. International Perception: Panama’s reputation has suffered as a result of past issues with money laundering and transparency.
Your License: The Road to It
Step 1: Establishing a Company: The first step entails establishing a corporation in Panama. This may be a newly incorporated corporation or one that has registered abroad.
Step 2: Application Submission: Following company formation, submit an application to the Panama Gaming Control Board with details about your business, its key personnel, and the games you intend to offer.
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: If the audit results are satisfactory for “License Acquisition” the Gaming Control Board will grant you a license.
In Panama, the initial license application fee was $40,000 as of my most recent update. In addition, there is a $20,000 annual license fee.
Fees for legal and financial advice, as well as costs for setting up and maintaining your online gaming system, are additional potential costs.
Finance and payment systems
The majority of banking and payment systems are accessible to online gaming companies with a license from Panama.
Such businesses can open accounts and process transactions through a number of regional and international banks.
In order to facilitate transactions with players from all over the world, your gaming platform can also be integrated with online payment platforms, credit card processors, and cryptocurrency payment gateways.
Last but not least, getting a license for online gaming in Panama can be very advantageous for the right business, despite the regulatory challenges.
Before beginning this journey, it is strongly advised to conduct research and seek professional advice, as with all legal and financial endeavors.