Summary.
The draft bill prohibits the commercialization, distribution, operation and sale of unauthorized illegal lotteries throughout Panama. To implement that prohibition, it amends Cabinet Decree No. 224 of July 16, 1969. The revised Article 37 prohibits the sale of foreign lottery tickets unless authorized by the Board of Directors of the National Charity Lottery. The prohibition includes sales through digital channels. The National Charity Lottery would impose a fine of 500 to 5,000 balboas (B/.500.00 to B/. 5,000.00) when the amount sold or collected does not reach the threshold for an offense under the Criminal Code; if it exceeds that threshold, the Code would apply.
The amendment to Article 38 prohibits operating, organizing or selling lottery games and draws that depend wholly or partly on the results of the National Charity Lottery or foreign lotteries, regardless of their name or the traditional or electronic means used. It also prohibits the clandestine sale of tickets, chances or other products officially authorized and issued by the National Charity Lottery. These acts would be subject to the same administrative fine and the same referral to the Criminal Code, depending on the amount sold or collected. New Article 38-A allocates the proceeds of those fines to the National Charity Lottery’s charitable fund.
Article 38-B directs the National Charity Lottery to conduct operations in cooperation with the Public Prosecutor’s Office to detect, eliminate and sanction clandestine sales. It provides for an Inspectors Unit attached to the Operations Directorate or the office to which that directorate delegates responsibility. The Public Prosecutor’s Office could initiate investigations on its own motion and conduct operations to establish the facts constituting the proposed offense. Inspectors’ findings must be immediately referred to the competent authority.
The draft bill adds Chapter XIII to Title VII of the Criminal Code, concerning offenses involving clandestine state lottery activities. Its Article 288-K imposes 3 to 6 years’ imprisonment for organizing, promoting, selling, distributing or administering without authorization lottery instruments reserved for the State or authorized concessionaires, if sales or collections exceed 5,000 balboas (B/.5,OOn.OO) within 30 calendar days, including amounts received from third parties. The penalty would be 6 to 8 years if the amount exceeds 10,000 balboas (B/.I0,OOO.nO), an organized structure is involved, minors are used, there is a connection to money laundering or organized crime, an official or authorized seller of the National Charity Lottery is involved, or the offender is a repeat offender.
The Executive Branch (Órgano Ejecutivo) would have no more than 6 months from the proposed law’s entry into force to issue implementing regulations. The text concerns the National Charity Lottery, its Board of Directors, the Public Prosecutor’s Office and the Executive Branch, as well as distributors, sellers and participants in lottery activities.
What it proposes.
- Commercialization and sale of unauthorized lotteries.
- Administrative penalties for foreign lotteries and clandestine games.
- The offense of clandestine lottery activity and circumstances carrying a higher penalty.
- Inspection operations and allocation of fines.
Who it would affect.
- People who organize, promote, distribute, administer or sell lotteries without authorization.
- Authorized distributors and sellers of the National Charity Lottery.
- Officials of the National Charity Lottery.
- The National Charity Lottery and the Public Prosecutor’s Office.
Key points.
- Prohibits the illegal commercialization, distribution, operation and sale of unauthorized lotteries throughout Panama.Art. 1
- Makes the sale of foreign lottery tickets subject to authorization by the Board of Directors of the National Charity Lottery and provides for fines, including for digital sales.Art. 2
- Prohibits games and draws linked to national or foreign lottery results, as well as the clandestine sale of products issued by the National Charity Lottery.Art. 3
- Allocates fines collected under the preceding articles to the National Charity Lottery’s charitable fund.Art. 4
- Provides for National Charity Lottery operations and an Inspectors Unit to cooperate with the Public Prosecutor’s Office, which may investigate on its own motion.Art. 5
- Makes unauthorized lottery activities a criminal offense when sales or collections exceed 5,000 balboas (B/.5,OOn.OO) within 30 calendar days.Art. 6
- Establishes imprisonment of 3 to 6 years, or 6 to 8 years when any of the listed circumstances carrying a higher penalty applies.Art. 6
- Directs the Executive Branch to issue implementing regulations for the proposed law within 6 months of its entry into force.Art. 7