Panama has enacted Law 527 of May 23, 2026, introducing wider controls over digital betting, online gambling and land-based casinos as the country responds to rapid growth in internet wagering.
The law was published in the Official Gazette on May 28 and must be regulated by the Executive Branch within six months.
The legislation recognises gambling addiction as a public health issue and gives the Gaming Control Board broader authority to act against unauthorised operators.
The regulator may order the blocking, suspension or restriction of websites, applications, domains and IP addresses linked to betting or gambling without a valid license in Panama.
Telecoms operators and internet providers must comply with those orders immediately, with fines of up to $1m for failure to do so.
Licensed digital betting platforms will be required to offer voluntary spending and time limits, issue automatic alerts for behaviour considered risky and use biometric identity and age verification to prevent under-18s from accessing gambling.
Full casinos and Type A slot halls must also add facial recognition to surveillance systems to identify people excluded by Gaming Control Board resolution.
The measures build on Panama’s existing framework, under which the Gaming Control Board sits within the Ministry of Economy and Finance and supervises casinos, betting agencies, bingo, slot halls and internet gambling.
The regulator’s responsible gambling programme already includes self-exclusion tools, public education and operator compliance checks.
The timing reflects a shift in Panama’s gambling mix. Reported gross wagers reached $2.94bn in 2025, while online betting rose 82% to $588m and accounted for 20% of the total market, compared with less than 1% in 2021. Online wagers also exceeded $170m in the first quarter of 2026.
Law 527 also creates a fund for gambling addiction treatment, administered by the Ministry of Economy and Finance for the Institute of Mental Health. It will be financed through 0.5% of annual revenue paid to the National Treasury by regulated gambling operators.
The law requires annual audits and orders the health and education ministries to develop prevention content for public and private schools.
In March 2026, Panama’s National Assembly approved Bill 403 in its third reading, requiring biometric verification for online operators and restricting gambling promotion across media, social media and sport.
Panama’s 2025 gambling sector generated more than $80m for the National Treasury and supported over 10,000 permanent jobs, according to Gaming Control Board-linked market data
