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Panama – Fears growing over slot machine numbers in Panama

By - 16 October 2015

There is growing concern in Panama over the rise of slot machines located in lower income neighbourhoods with lawmakers admitting that urgent measures are necessary to tax them more efficiently.

According to local press reports, the state is currently unaware of the exact amounts which are bet via Type C slot machines located in slot parlours. This is because unlike slot machines located in casinos and categorised as type A in Panamanian gaming law, slot machines located outside of casinos are not connected to a central government controlled server. Under current rules slot machines outside of parlours pay a monthly fee of US$150 per machine, while slot machines in fully fledged casinos pay a percentage of their income.

As as result there is growing fear that the money generated by slot parlours could be being used for money laundering, according to sources in the gaming sector. Secretary of the Gaming Control Board (SJC) Eric Ríos told press that the government was working on a project to connect type C machines slot machines to the government controlled server. Mr Ríos said that the board was currently in the analysis stage and said that the system could be operational as early as next year.

In 2012, the Gaming Board pulled 3,000 slot machines out from circulation arguing that 4 of the 21 companies which had been authorised to operate were operating without a proper permit. However despite a number of measures aimed at reducing levels of problem gambling slot parlours have continued to grow and by 2013 there were at least 8,000 slot machines located throughout Panama. In 2012 the board established new rules which imposed a US$10 thousand licence fee with operators authorised to operate from 15 to 75 slot machines on site which allowed for another expansion of the market.

The expansion of slot parlours in poorer areas has been a growing cause for concern and there have been reports this year that the government had been poised to tackle the issue. This was after a number of statements released by the Gaming control Board (JCJ) that it considered Type C machines, to be the main causes of pathological gambling, since they are located in nearby low income neighbourhoods. Type C slot machines may only pay a maximum of US$200 per machine in prizes.

In September it was revealed that the Commission of Economy and Finance in Panama’s National Assembly had begun the consultation phase in the first debate of the bill that will restructure the Gaming Control Board. New proposals seek to regulate casinos and gaming halls due to their proximity to local to communities, schools and churches.

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