Panama has taken one of the most significant regulatory steps in its gambling industry in recent years with the enactment of Law No. 527 of May 23, 2026, legislation that expands oversight of casinos, online betting operators and digital gaming platforms through new biometric verification requirements, responsible gambling measures and stronger enforcement powers against unlicensed operators. The law was published in the Official Gazette on May 28, 2026, marking the country's most important gambling reform since the expansion of its regulated online gaming market.
The legislation originated from Bill No. 403, introduced by lawmakers Raúl Pineda and Crispiano Adames, and approved in third reading by the National Assembly on March 19, 2026. The initiative was designed as a public policy framework to prevent, treat and control gambling addiction amid the rapid growth of digital betting activity across Panama.
Crispiano Adames
The most significant change is the mandatory implementation of biometric identity and age verification systems for online gambling users, along with facial recognition tools and enhanced controls aimed at preventing individuals under 18 years of age from accessing gambling products. Licensed operators will also be required to offer voluntary spending and time limits, automated risk alerts and monitoring systems capable of detecting problematic gambling behavior.
Finance Minister Felipe Chapman
The law also establishes a permanent funding mechanism for gambling addiction treatment. Type A casinos, Type C casinos and licensed digital operators must contribute 0.05% of their net profits to support specialized treatment programs and a national gambling addiction center administered through Panama’s mental health system.
Another key pillar of the reform is strengthened digital enforcement. The legislation grants authorities broader powers to block gambling platforms operating without authorization in Panama and imposes stricter controls on gambling advertising, particularly content targeting minors and vulnerable groups.
The sector continues to be regulated by the Gaming Control Board (Junta de Control de Juegos – JCJ), which operates under the Ministry of Economy and Finance (MEF), headed by Finance Minister Felipe Chapman.
The reform arrives at a time of rapid market expansion. Online betting generated approximately US$588 million in wagers during 2025, growing 82% year-over-year, while accounting for roughly 20% of Panama’s total gambling market, creating new pressure on regulators to balance consumer protection with continued digital industry growth.
