Panamanian casino reopening to reactivate around 600 labor contracts

The president of the Association of Gaming Administrators of Panama (Asaja), Antonio Alfaro said that about 600 workers who work in casinos and machine rooms may be reinstated and the rest will be reactivated little by little.

"The casinos are willing to reopen but they will do so depending on the logistics of each one and where they are located," he said.

The reopening of entertainment activities as of March 6 was decided because Panama registers a rate of positive cases of covid-19 of 5.5%, the lowest since the pandemic began, said the Minister of Health, Luis Francisco Sucre.

On that same date, the total weekend quarantine will be lifted in Panama, Panama Oeste, Coclé, Herrera, Los Santos and Veraguas.

The gambling industry only reported in 2020 bets for 118 million 135 thousand dollars until December of last year, when for that same time, the figure exceeded 1,390 million 092 thousand dollars, according to figures from the Comptroller General of the Republic. This represents a drop of 69.7% due to the direct effect of the coronavirus quarantine.

Members of the sector assure that the application of the curfew, the low capacity and the delay in the opening of some hotels where the casinos operate, have prevented most of these companies from reopening their doors to the public. '

    "$ 500 million annually are generated by games of luck and chance in Panama.
    $ 150 million contribute to the between participation to the State and the Selective Consumption Tax."

For 2012 the industry contributed to the State, only in participation rate, more than 96 million dollars, without adding income tax (ISR). But at the end of 2019, only $ 74 million was collected, that is, a 23% drop. This drop has had a multiplier effect, such as the closure of rooms and casinos, the paralysis of investment, as well as the cut in spending, an impact that extends to business partners (maintenance, sellers of inputs, suppliers, among others).

Taking into consideration 2019, which had already closed with a 3% drop compared to 2018, the State stopped receiving about 6 million dollars a month in royalties for the licenses of casinos, slot rooms and betting that were closed".

Games of chance and chance generate in Panama more than $ 500 million a year and contribute to the State an amount greater than $ 150 million, between participation to the State and the Selective Consumption Tax (5.5%), which is destined for the payment of pensions of the Social Security Fund.

Additionally, this industry invests $45 million annually in hotel and commercial rentals.

On the other hand, in the province of Herrera, from March 1, car washes, shoe stores, tailors shops and the creative and cultural industry will reopen their doors; While from March 6, cinemas, gyms, massage rooms, beauty salons, spas, casinos, marinas, sport fishing and recreational sports fields will reopen.

Other activities that will reopen as of March 6 are movie theaters and sports fields for recreational use.

Tony Barclay, spokesman for movie theaters in Panama, said that at this time they still have nothing to report on the reopening of the industry.
"The issue is hardly analyzed throughout the union and decisions, administrative procedures, programming and many details are evaluated," he told Panama America.