Panama Approves New Gambling Law With Website Blocking Powers

New Rules Focus on Player Protection

Panama has implemented Law 527, which is part of a broader strategy to minimise gambling-related harm. The law follows online betting on the rise throughout the nation. Special consideration has been given to risks to young people and minors.

Problem gambling is also defined as a public health problem by the law. Now the government has up to six months to implement the new regulations.

Regulator Gains Website Blocking Powers

One of the more significant shifts is in enforcement. The Gambling Control Board has the ability to block illegal gambling sites, mobile apps, domains and IP addresses. These powers are also extended to operators outside Panama when they are providing services to local users without a license.

Telecommunications companies have 5 days to comply with an order. Compliant firms may be subject to fines of up to $1 million if they do not comply.

Operators are required to abide by new safety rules.

The law places new obligations on licensed operators. Users should be able to cap their spending and playing time. The tools are designed to assist players to remain in control of their gambling. Operators must also send automatic alerts when unusual behavior appears. The law requires biometric checks to confirm a user's identity and age.

Land-based casinos face new rules as well. They must install facial recognition systems that can identify people excluded by regulators. Main requirements include:

• Spending limit tools for players

• Time limit controls

• Biometric identity and age checks

• Alerts for unusual behavior

• Facial recognition systems in casinos

New Fund Will Support Treatment Programs

Law 527 does more than add enforcement powers. It also creates a fund for gambling addiction treatment and prevention programs. The Ministry of Economy and Finance will manage the fund. Money will come from annual revenue collected from licensed operators.

The Institute of Mental Health will use these resources to support treatment efforts. At the same time, health and education authorities must create awareness programs for students.

Audits and Fines Raise Pressure on Operators

The law also strengthens oversight across the sector. The Gambling Control Board must carry out annual audits of online casinos, betting services, and casinos. Companies that break the law could face fines from $25,000 to $100,000. A second violation may bring larger penalties and a temporary business ban.

Nevertheless, the law is not only about punishment. It also aims to improve player safety and reduce gambling harm. For Panama's gambling sector, a new phase is beginning — one built on tighter controls, closer monitoring, and stronger protection for players.