The Gaming Control Board (JCJ) of Panama may revise its tax framework in order to make its gambling market more attractive to foreign investment. Among the changes on the table are an end to a 5.5 percent tax on player winnings that is applied across casino games, slot machines and sports wagering.
A change in policy follows a change in national leadership. In July, when President Laurentino “Nito” Cortizo of the ‘Democratic Revolution Party (PRD) was elected, he said the PRD would seek out ways to boost Panama’s economy through strategic investment, improved governance of industries and long-term debt reduction.
Confirming the review, JCJ Secretary Manuel Sanchez, a member of Panama’s Economic Ministry, said the player tax had hindered, not helped the nation’s leisure and tourism industries. “The tax on gaming tables is a tribute created in the past administration, which also applies to bingo, casinos, slot machines and sports betting,” he said.
According to JCJ figures, since 2014, gaming taxes have been declining, each year falling below the $95 million target.
“We will increase revenues and promote responsible gambling, this set of measures and others will help us to make this activity positively impact the country’s economy” said Manuel Sánchez.
