Supplier News
Panama – Gambling down by almost ten per cent in Panama
By Phil - 16 December 2016
According to the latest report released by Panama’s National Controller´s Office gambling in the first ten months of this year fell by almost 10 per cent compared to the same period in 2015 standing at US$1,866m, around US$192.7m less than last year.
Horse racing saw a slight upswing with bets increasing by 0.5 per cent rising from US$39.1m to US$39.3m but gambling in bingo halls reached just US$2.8m – a fall of 4.9 per cent in the first ten months of 2016.
Table gaming also saw a decline falling by as much as 26.1 per cent falling from US$230.3m to US$170.1m. Gambling via type A slot machines (slot machines which do not have a payout ceiling) fell by 7.4 per cent and stood at around US$1,628m – the first time it has fallen in four years. Sports betting also reported a decline falling by 11.4 per cent and stood at US$25.387m.
According to Antonio Alfaro President the Association of Managers of Gaming (ASAJA), the fall is a direct result of a 5.5 per cent tax which now applies to all cash withdrawals made in casinos, slot parlours, bingo halls and sports betting shops and tracks. The tax which went into effect in June 2015 means that tax deductions are made even if the customer cashes in chips without winning. “We have asked the government on many occasions to remove the tax, because it is affecting the industry, but we have not achieved anything so far,” he told local press. However, the government has repeatedly defended its decision to raise taxes in order to combat gambling addiction and raise money to meet shortfalls in state pensions.
The new tax has also affected jobs in the sector. In March 2016 the the ASAJA reported that since June 2015 a total of 1,200 workers had lost their jobs. Meanwhile according to a report released by the Gaming Control Board (JCJ) in January gaming revenue in Panama decreased significantly in 2015. The industry generated US$82.2m in gaming tax revenue in 2015 compared to $96.1m in 2014 – a 14.4 per cent decrease marking the end of a decade of increased revenues for gaming companies.
