Panama Enacts New Law Focused on Preventing Problem Gambling

Panama has enacted Law 527, which provides a new regulation framework intended to prevent and control problem gambling in Panama. It was published in the Official Gazette and introduces more stringent requirements to casinos, online betting platforms, and gambling operators, as well as considers the problem of gambling as a public health risk.

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According to the regulation, the Executive Branch has up to six months to adopt the law. Officials state that the purpose of such a measure is to mitigate social risks resulting from the fast growth of digital betting, especially among young people and minors.

Among the most significant changes introduced in the legal framework is a number of obligatory spending and time restrictions for users, the requirement to install a biometric identification system, and facial recognition systems in casinos. The law also increases powers to block unauthorized online gambling platforms operating in Panama.

Gambling Industry Regulation Framework Gets More Modernized

One of the most important aspects of the new regulation is a number of obligations that will affect digital betting platforms.

Nowadays, betting operators are obliged to provide an opportunity to limit financial and time restrictions on gambling activities. Furthermore, they should provide automatic notifications when suspicious behavior on gambling websites occurs.

Moreover, gambling operators should install biometric systems that will help to identify users’ identity and age to avoid any possibility of providing online gambling opportunities for users under the age of 18.

This regulation also introduces some technological requirements to land casinos, namely, the installation of a facial recognition system for identifying those people who were excluded by the Gambling Control Board.

Authorities believe that this move will help not only to increase control but also to protect minors from online gambling and prevent gambling addiction.

Panama Gives Authorities More Powers to Fight Unlicensed Gambling Operators

Another important aspect of this legislative innovation is increased authority for blocking sites and other resources that are considered unauthorized by the Gambling Control Board.

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Nowadays, Gambling Control Board can impose restrictions on gambling websites, applications, domains, and IP addresses that operate outside Panama but have no Panamanian license.

It is worth noting that such a decision will affect not only the owner of a betting platform but also the telecommunications company, which is obliged to implement restrictions within five days after receiving relevant orders.

If a company refuses to do so, it will face a fine of up to one million balboas. This measure indicates the serious attitude of regional regulators to online gambling.

New Fund Established to Treat Gambling Addictions

In accordance with the provisions of the newly adopted law, a fund managed by the Ministry of Economy and Finance will allocate funds for financing treatment and prevention of gambling addiction conducted by the Institute of Mental Health.

These funds will be received as part of annual revenues received by the state budget by regulated gambling operators in the form of fees.

In addition, the law obliges the Panamanian Gambling Control Board to conduct an audit annually of digital gambling sites, betting platforms, and casinos to check whether they meet all the requirements imposed on them by the legislation.

Also, both the Ministry of Health and the Ministry of Education are obliged to create educational programs about gambling addiction and its negative effects for both private and public schools.

Any gambling operator will have to pay a penalty ranging from 25,000 to 100,000 balboas in case they violate the obligations established by the law. Also, if a gambling operator violates the provisions twice, he faces doubling of penalties and prohibition to conduct business for a certain period of time.

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Source: SBC Noticias