Panama Casino License Requirements
Many foreigners have come to Panama in order to start casinos located within the numerous hotels and resorts located across Panama.
While this can be a lucrative and profitable business if not properly funded or managed correctly the entire investment could be at risk. Like many countries concerned about shady characters or under capitalized investors starting casinos Panama has rules and regulations to prevent such errors from occurring.
Law 2 of 1998 established the Department of Games within the Ministry of Economics & Finance to control casinos and issue operating permits.
Panama’s Ministry of Economics & Finance lists the following requirements to be able to start a Casino in Panama:
1. File a Power of Attorney and request for a casino license through a Panama attorney. The application must contain:
2. Name of applicant.
3. Location of the Game Room.
4. Submit a business plan that indicates the number of arcades which the applicant intends to operate and their locations, and the amount and type of gaming tables and slot machines Type “A” which the casino will operate.
5. Names of people directly or indirectly involved in the proposed transaction and the nature of such interest (such information includes shareholders, directors, officers, legal representative of the company, in case of a legal entity).
6. Complete information on the personal, criminal, commercial and financial backgrounds and relevant aspects of each director, officer, management employees, each shareholder owning ten percent (10%) or more of the shares of the applicant’s
corporation, and any person that, in the opinion of the Director of Gaming, have a significant relationship with the proposed transaction, covering the ten (10) years prior to the date of filing of such application.
7. Submit duly authenticated documents proving the establishment and enforcement of the legal entity or certifying the identity of the natural person, if applicable.
8. Provide information on the financial structure of the legal entity, including a list of all outstanding shares.
9. Submit certificate issued by the secretary of the company stating the names of each shareholder.
10. Submit certification from the secretary of the society in which lists all loans,
mortgages, trusts, liens, and outstanding obligations.
11. Submit certification signed by the company secretary which lists the names of people whose benefits, salaries or fees correspond to the 10 highest payrolls, whether or not directors, officers or employees of the applicant’s company.
12. Indicate the procedures used or to be used to award bonuses and profit sharing.
13. Submit copies of all contracts and subcontracts relating to the proposed transaction.
14. Present balance sheet income statement, duly certified by a certified public accountant, covering the three (3) fiscal years preceding the date of application.
15. Copies of tax returns for the last three (3) years or estimated income statement.
16. File investigation forms issued by the Gaming Control Board for those who occupy positions of trust including Directors, Officers, and Shareholders.
The Panama Gaming Control Board will set the minimum fee per month. If the casino is located in a designated area, the casino will either pay the minimum set fee amount or 10% of the monthly gross revenues, whichever is greater.
If the casino is located outside the designated area, it will pay 10% of their income.
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