Panama advances stricter gambling safeguards with third-reading approval of Bill 403

Panama’s National Assembly has approved Bill 403 in third debate, moving the country closer to a stronger responsible gambling framework as lawmakers respond to the rapid expansion of digital betting and rising concern over gambling-related harm.

Panama has taken an important regulatory step after the National Assembly approved Bill 403 in its third debate on March 19. The measure is aimed at the prevention and control of problem gambling and expands the regulatory perimeter beyond physical venues to include online platforms, mobile applications and other electronic systems offering gambling or betting products. The Assembly described the bill as a public-policy measure intended to reduce gambling-related disorders through mandatory prevention mechanisms and a stronger treatment structure.

One of the most significant provisions is the creation of a treatment fund for gambling addiction. Under the bill, Type A and Type C casinos as well as digital betting platforms would have to allocate 0.05% of their net profit to Panama’s mental health institute to help develop and maintain a national treatment center. The text also strengthens protections for minors, reinforces age restrictions for people under 18, and introduces biometric verification mechanisms for digital platforms, with criminal penalties for operators that allow underage participation.

The proposal also increases enforcement tools. Oversight would fall to the Junta de Control de Juegos in coordination with the Autoridad Nacional para la Innovación Gubernamental, while the bill also gives the regulator broader powers over illegal digital gambling. According to La Prensa, the text requires telecom operators and internet providers to comply immediately with blocking orders issued by the regulator, with fines ranging from $300,000 to $1 million per violation if they fail to act. It also sets fines of $25,000 to $100,000 for digital betting platforms in certain cases, with repeat offenses potentially drawing tougher sanctions, including license suspension or revocation.

The legislative push comes as Panama’s gambling market is being reshaped by digital growth. Local reporting citing official INEC data says online gambling was the main driver of sector change in 2025, with the online segment growing 53.6% year over year, while broader gross gambling activity reached about $2.94 billion and internet-based gambling generated around $587 million. That context helps explain why lawmakers are increasingly framing gambling oversight not only as a licensing issue, but also as a public-health and digital-enforcement challenge.

For Panama’s gambling sector, Bill 403 signals a tougher and more modern compliance environment rather than a simple policy adjustment. Even before any final enactment steps beyond the Assembly stage, the direction is clear: Panama is preparing for a market in which responsible gambling controls, digital supervision and operator accountability will carry much more weight than before.