Digitalization Of Gambling In Panama Triggers Record Market Growth -

(MENAFN- Newsroom Panama) For the first time in the entire history of official statistics, the gambling market in Panama has shown double-digit quarterly growth, astonishing even seasoned analysts. In the first three months of 2025, the local industry recorded a significant jump thanks to rapid digital transformation. The main issue at hand: can the expanding online segment shift the balance among traditional formats and make the country a leader in Latin American gambling?

Record-Breaking Start to the Year: Key Results and Figures

In the first quarter of 2025, the gross revenue of Panama's gaming sector reached $671.8 million, which, according to the National Institute of Statistics and Census (INEC), is 11.3% higher than the same period in 2024. The largest contribution came from slot machines, yet it was internet gaming that set a new pace of growth. Such rates naturally prompt the question: what forces are driving such rapid progress and has the potential been exhausted?

How Growth Was Distributed: Segment Dynamics

Slots and Gaming Machines

The“Type A” segment of electronic gaming machines maintained its leadership, increasing turnover to $516.6 million with year-on-year growth of 7.3%. The popularity of electronic formats is explained by local players' habit of easy and fast entertainment. In Panama, a culture of gaming halls has historically developed, where slots have become an integral part of everyday city life and family leisure, which is reflected in consistently strong demand figures.

Lotteries and Traditional Games

Classic lotteries and ticket-based games, including“chances” (as instant and draw-based lotteries are called), generated $206.6 million-4% more than the previous year. Such results are supported by the loyalty of a conservative audience that prefers older formats and collective rituals of buying tickets. Steady demand here is explained not only by tradition, but also by the fact that lotteries remain part of the cultural identity of many Panamanians. Now, let's look at the state of other directions.

Casinos, Sports, and Other Segments

Casino tables recorded an almost unchanged result-$35 million, declining by less than 1%. At the same time, sports betting decreased by 3.5%, amounting to $4.4 million, while bingo maintained a modest but stable contribution ($1.6 million). The most noticeable drop was in revenue from horse racing (racino betting): a fall of 7% to $7.3 million. This decline is linked to the global trend toward declining interest in traditional types of betting, which are gradually giving way to digital alternatives and interactive gaming formats.

Online Gambling: Explosive Growth

The absolute record-holder of the quarter was internet gambling, increasing by 47.7% and bringing revenue up to $106.1 million. Here, mobile platforms and live games-formats that allow participation in real-time draws via smartphones-are particularly popular. In the mobile gambling segment, major international companies are leading. According to statistics, 1 win app , Megapari, and PinUp are among the most popular.

According to economist Patricio Mosquera,“double-digit growth per quarter confirms: it is digitalization that gives the sector incredible momentum and is displacing old habits.” Such a shift becomes a catalyst for change for the entire market.

What Drives the Market?

Today, the gambling market in Panama is shaped by several drivers at once:

• Rapid spread of smartphones and affordable mobile apps
• Focus on a young, digital audience accustomed to mobile services
• Willingness of companies to implement innovative tools and new gaming mechanics

As a result, there has been a generational shift in gambling consumption: while gaming halls and lotteries used to be in the lead, now the center of gravity has shifted to online platforms, as seen even in payment statistics via e-wallets and apps. Similar trends are observed in Colombia, Mexico, and Argentina, where the share of online gambling in turnover is also growing annually at double-digit percentages. The key question: will such a high growth rate be sustained, and where will it take the market?

Expert Opinions and Forecasts

Economist Patricio Mosquera believes that“income growth in the online gaming segment is outpacing the country's average economic growth due to ease of access and innovative solutions.” Market operators express cautious optimism: they admit that adaptation to the new realities requires investment in digital products and effective marketing, but they fear further decline in interest in traditional segments.

Increased digitalization requires updates to legislation: measures are already being discussed to control responsible gambling and improve transparency of financial flows. Among the contentious issues are the risk of losing part of budget revenues due to player mobility, as well as possible social effects of mass online gambling.

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