Nicaragua Size of the Illegal Gambling Market
Tere are an estimated 11 thousand to 13 thousand unauthorised slot machines located in pharmacies, markets, shops and bars throughout the country.
Current Measures in Place
In 2014, the Nicaraguan government announced that it would amend its 2011 gaming laws and take the industry out of the control of the Ministry of Tourism and put gaming under the control of the Ministry of Finance and Nicaragua’s Financial Intelligence Unit. Tis was because while the 2011 law tightened control over the industry, illegal gaming had continued to rise, as the Ministry of Tourism had been ill equipped to regulate the proliferation of illegal gaming. Since 2014, the Ministry of Finance working alongside the Financial Analysis Unit, as well as Nicaragua’s Tax Department and police force has done much to ensure that the industry is more transparent. In addition, the amendments to the 2011 law also created a new Casino and Gambling Hall Control Board within the Ministry of Finance. Today this specifically designated board coordinates with the Financial Analysis Unit, which together with the Ministry of Finance is now responsible for regulating all matters related to gaming.
Outlook
Nicaragua Market Before the act of 2011, illegal gaming had continued to grow while slots in small businesses had existed in a grey area meaning that they had greatly increased in number without adequate state supervision. Te new act of 2011 new act split gaming establishment into four distinct categories and heralded the beginning of a crackdown on illegal gambling especially on slot machines found to be operating outside gaming establishments
Today the Ministry of Finance carries out regular inspections on legally licensed operators and has shut down many illegal operations. However, one of the industry’s persistent problems is Nicaragua’s vulnerability to money laundering. According to a report released by Te Financial Action Task Force of Latin American (GAFILAT) in July 2017, Nicaragua is now the second nation most vulnerable to the crimes of money laundering and financing of terrorist activities in Central America. While considerable progress has been made and government efforts have been praised by Nicaragua’s Chamber of Authorised Gaming and Gambling Entrepreneurs (CEIJA) more measures need to be implemented in order to prevent money laundering. In addition, much of the gaming industry still forms part of the informal economy. As a result, many small gaming businesses avoid adherence to both local and international gaming laws.
P50 NEWSWIRE / INTERACTIVE / MARKET DATA
Panama Size of the Illegal Gambling Market
Illegal gaming is not as prevalent in Panama as it is in other jurisdictions. However, there has been considerable controversy surrounding the granting of licences for Type C slot parlours. Type C slot machines may only pay a maximum of US$200 per machine in prizes and have been an increasingly important source of government funding over recent years. However, their expansion has been most pronounced in poorer areas. In June 2014, the Association of Managers of Gaming (ASAJA) applied to Te Supreme
Current Measures in Place
In December 2014, the government vowed to tackle the issue and close down those slot parlours which were not complying with the law. Tis led to a number of closures nationwide. In order to address the issue further in March 2018 it was announced that Type C slot machines would be monitored in real time by a central government controlled server connected to the JCJ in order to verify in real time the total amount of bets.
Operators are also subject to a number of strict anti money laundering measures. For these matters, the financial regulator the Intendancy
In 2012 the JCJ changed rules increasing the number of slots on site and allowed companies with bearer shares to operate betting centres, something which was actually prohibited by law.
Court of Justice with a demand for information regarding the licensing process after the former Secretary’s office for the Panamanian Gaming Control Board (JCJ) had refused to reveal the names of the companies that ran Type C slot parlours, their respective shareholders and the number of machines that they operated in the country.
In 2012 the JCJ changed rules increasing the number of slots on site and allowed companies with bearer shares to operate betting centres, something which was actually prohibited by law. ASAJA indicated that they would request the information from the JCJ, and said that once the data was collected, that they would denounce those contracts, which they argued had been illegally granted during the previous administration.
According to ASAJA by the end of 2014, Panama had seen a rapid growth of slot parlours, which were operating without a licence. In 2012, there were an estimated 4,000 Type C slot machines operating throughout Panama but by the end of 2014 there were as many as 8,000 to 9,000 located in economically depressed areas many of which were operating illegally after the government changed rules and allowed for their expansion.
of Regulation and Supervision is responsible for the oversight of operators, rather than the JCJ. According to the law, operators must report to the Financial Analysis Unit all cash transactions of US$10,000 or more and any suspicious or unusual activity. Tey must also designate a compliance officer for the prevention of money laundering and the prevention of terrorism financing.
Outlook
Panama Market Te outlook is also becoming increasingly difficult due to money laundering fears as local banks are becoming less willing to accept funds from the gaming sector. Casinos continue to be viewed as high risk for money laundering which means that local banks have restricted their relationship with gaming companies. In addition, the size of the legal market is shrinking due largely in part to a 5.5 per cent tax on cash withdrawals from casinos, slot parlours, bingo halls and sports betting shop meaning that locals are turning away from licensed operators in increasing numbers.
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