Panama to scrap the 5.5% tax on casino and betting winnings to lure back foreign tourists
Panama will eliminate a 5.5% tax on gambling winnings to boost tourism and attract foreign players amid a sector downturn.Summary
Panama's government has announced the scrapping of a 5.5% tax on winnings from table games and betting, a move aimed at attracting foreign players and boosting tourist arrivals. The decision comes as the tourism sector faces a deep downturn and gambling revenue has fallen for three consecutive years. The tax, introduced in 2015 to fund pension payments, was levied directly on players and made Panama less competitive compared to Caribbean destinations and the United States. The government argues that removing the tax will support the hotel and tourism sector by offering better value to travelers. This initiative is also seen as a necessary measure to compete with the rapid growth of online gambling, which offers marketing tools and lower financial risks that land-based venues struggle to match. To ensure the reform is effective, authorities plan to launch an integrated electronic system to monitor operators and increase the number of auditors. The move is part of a broader effort to address a critical situation in the tourism sector, which has lost over 40,000 jobs and seen hotel occupancy fall below 45% in the past two years.
(Source：Newsroom Panama)