The constitutional democratic republic of Panama, the most important financial center in Central America, has an impressive history of international banking and services jurisdiction. It has a fully regulated body of internet gaming laws of the highest standard, comparable to the gaming laws of the Isle of Man, which means that the Internet gambling entrepreneur can open a gambling website and continue to be on the right side of US law. With its absence of a military and central bank, free circulation of US capital, free use of the US dollar as legal tender and zero tax, Panama has been described as a ‘virtual country’ which makes it ideal for the online gambling industry. There are no double tax treaties that can be used for commercial activities and no VAT is levied on goods or services exported from the Republic of Panama. The gambling industry is furthermore subject to special tax exemptions on imported products for the gaming industry.
The gambling jurisdiction of Panama offers US standard infrastructure and necessary resources and at half the cost. Its location is conveniently close to several major US cities. Panama has access to multiple high-bandwidth continental fiber optic networks, in fact the best submarine fiber optic access of the region. The area is free from earthquakes, has no active volcanoes and is not subject to hurricanes. Panama boasts an 80% literacy rate and has a large supply of fully bilingual certified engineers. Panama is also a pollution-free and well forested area which, combined with low living costs, makes it a very pleasant place from where to run your online gambling business.
Panama Internet Gaming Licenses
All Internet Gaming Companies within or hosted in Panama have to be registered under the online gaming act of 12 November 2002. The regulation allows for online international wagering.
The telecommunications system can be provided through the most state of the art fibre-optic system in the region. Panama also boasts one of the largest banking and offshore jurisdictions in the world. The official currency is the US dollar.
Internet gaming companies domiciled in Panama enjoy complete tax exemptions. Customs duty concessions are given for imports needed to carry on Internet gaming. As long as the income made from Internet operations is to jurisdictions outside of Panama, there are no income tax, withholding tax, sales tax or VAT taxes. Offshore companies, such as on-line gaming companies are not subject to foreign exchange control. There is also a new call center incentive and training program that boast numerous qualified bilingual workers. Finally, under much limelight, there is a proposed law in the legislative assembly to make English the second official language, thus eliminating the need for translations for official documents and procedures.
Panama Licensing Procedures
- The process of the application for the license usually takes from one to two months after providing all required documents.
- To ensure that all Applicants have no criminal record and suitable references.
- To designate qualified Applicants as to operating under the master license.
- To ensure that all software and specific games of chance conform to the strict regulations of the Panama Internet Gaming License.
- To collect all fees.
- To monitor game payouts and to make certain they are within acceptable worldwide standards.
- To make certain that a complete record of all transactions are available for inspection by designated officials of the Government or the License holder at any time.
- Compliance with national and international money laundering regulations.