Panama President Juan Carlos Varela Rodríguez recently vetoed a new 5 percent tax on annual net profits from slot machines and betting centers at casinos and gaming establishments. The new tax, approved by the Asamblea Nacional in November, would have been levied on top of the current 5.5 percent gambling tax approved in 2015 to help finance pension plans. Players must pay the tax on winning or losing bets when they receive their prizes or exchange the chips for cash with the cashier.
The Panama Gaming Association operators’ group said the tax is partially responsible for the decline in gambling revenue. Figures from the Junta de Control de Juegos show gambling revenue fell 3.5 percent to $1,998 million from January through November 2018 compared to the same period in 2017. The figures indicate gambling revenue fell for seven consecutive months from May through November.
Slot revenue declined 1.5 percent to $1,780 million, but table games revenue fell by 27.6 percent to $119.8 million. Table games only can be offered at integrated casinos located at hotels with more than 300 rooms.
