Panama eliminates tax gaming in order to attract foreign tourists

The Secretary of the Gambling Control Committee of the Ministry of Economy and Finance,  Manuel Sánchez, detailed that "the tax on table games was created in the previous administration," and "it is applied on bingo halls, casinos, slots and sportsbooks."

"Tax elimination will represent a support of the hotel and tourist sector, because players will have better conditions to come to Panama", said Sánchez in a public statement.

An official source commented to Efe that this tax "paid by the bettor has made Panama less competitive as a betting center, compared to the Caribbean and the US."

Panamanian professor and economist Olmedo Estrada told Efe that "from a economic perspective," this measure "might be an incentive both for international and national bettors."

"When people travel, they feel attracted of the possibility of having games of chance," the expert affirmed, and added that they would have to wait until the government takes the necessary measures "to communicate that the tax has already been eliminated, which is applied every time bettors win."

The tax was created in 2015 with the aim of obtaining an increase in the salary of retired people in Panama.

The Gambling Control Commitee also announced that it will implement measures to improve collection in the sector, such as the beginning of "an interconnected and electronic system that will facilitate the control of operators."

The number of auditors will also be increased, because "a lack of personnel has also caused a decrease in collection," said the Ministry of Economy, which assured that it will boost responsible gaming.

According to the data released by the Ministry of Economy, between January and August this year, the collection in games of chance was US$ 50,8 million, a 33,2 % less than in the same period in 2018.

Government of President Laurentino Cortizo, which assumed last July for the 2019-2024 period, has admitted that the situation of the tourist sector is "critical", after the loss of more than 40,000 jobs and a hotel occupancy rate of less than 45% in the last two years.

Tourism would represent the 10 % of the National Gross Product in Panama, which in 2018 represented a 3,7 %, the lowest rate of the last decade.