Panama Lottery Seeks Harsher Penalties for Illegal Gambling

Panama.- 16 July 2026 www.zonadeazar.com Panama’s National Charity Lottery (LNB) has submitted draft legislation aimed at significantly strengthening penalties against illegal gambling and underground lottery sales. The proposal would introduce criminal sanctions, including prison sentences, higher fines and stronger enforcement powers to combat illegal gambling networks.

News Details

The proposed legislation would amend existing laws by making the organisation, distribution and sale of illegal lotteries and other unauthorised gambling activities criminal offences. Individuals involved could face prison terms alongside substantially increased financial penalties.

The bill also seeks to expand enforcement powers against organised illegal gambling operations, which the LNB says continue to undermine public revenue and harm thousands of authorised lottery vendors throughout the country.

Industry Context

The initiative forms part of Panama’s broader campaign to combat illegal gambling. According to the National Lottery, underground lottery sales have continued to expand, reducing funding available for social programmes while negatively affecting the regulated distribution network.

Authorities believe stronger legislation will improve enforcement capabilities, protect licensed vendors and discourage participation in illegal gambling activities.

Statements

Isidro Carbonell, Director General of the National Charity Lottery, said the proposal aims to make illegal lottery sales a criminal offence while providing authorities with stronger legal tools to protect both the institution and authorised lottery vendors.

Next Steps or Impact

The bill will now proceed through the National Assembly’s legislative process. If approved, Panama would introduce one of its toughest legal frameworks to date against illegal gambling, strengthening protection for the regulated market and the public funds generated by the lottery.

Edited by: @_fonta