Panama – Slots help drive revenue rise in Panama
Figures issued by the Panamanian government have shown that gaming revenue between November 2012 and December 2013 stood at US$2682.2m; an increase of 12.1 per cent.
In the same period the industry recorded revenues of around US$288.5m more than the previous year.
The most popular activity were slot machines located in casinos and slot parlours (classed as Type A in Panamanian gaming law) with gaming gross revenue standing at US$ 1.781m, representing a 17.4 per cent increase since 2012.
The National Lottery was the second most popular activity and generated U$$532m. Meanwhile, gaming tables also saw an increase of 1.6 per cent. However betting at race tracks, bingo halls and sports betting shops fell by 2.9 per cent, 8.2 per cent and 30.7 per cent respectively, during the same period.
Slot machines operators also paid less tax despite an increase in gaming revenue. In 2012 Panama’s National Assembly proposed to increase the then current taxation rate of 19 per cent of gross income generated on slot machines to 22 per cent. However, in the third reading of the act the tax on slot machines was actually reduced from 19 per cent to 18 per cent.
The rise in gaming in Panama is also thanks to the increasing popularity of Panama as a tourist destination. The most recent official figures show that between January and November 2013 a total 1.8 million tourists visited Panama, which in turn spent a total of U $ 2.245m.
The gaming industry in Panama has seen a dramatic transformation since 1998. Before 1998 there were only a small handful of casinos in Panama all of which were state run. In 1998 the government passed a wide sweeping gaming law which permitted casinos as long as they were part of five star hotel with a minimum of 300 rooms. Since then the casino industry in Panama has grown rapidly and is now home to one of the most developed gaming industries in the entire region. This boom has coincided with Panama’s growing tourist industry and subsequent building boom – the largest of its kind in the history of Latin America.
