Panama Faces International Arbitration Over Gaming Dispute as Codere Challenges Regulators

Codere América has formally notified the Presidency of the Republic of Panama that it is launching an international investment arbitration process under the Spain-Panama investment protection agreement. For high-risk operators and PSPs, the important part is not just the dispute itself: Panama’s gaming regulator is now being challenged over how it enforced court rulings and supervised market access.

1. Codere, through its subsidiary Codere América, said the dispute stems from regulatory decisions that altered competitive conditions in the Panamanian gaming market. The company argues that the authorities allowed gaming halls to operate in ways it considers inconsistent with local law.
2. The core complaint is aimed at the Junta de Control de Juegos (JCJ), which oversees gaming and betting activity in Panama. Codere says the regulator acted partially by failing to effectively enforce earlier judicial resolutions tied to the authorization of new slot halls.
3. The company specifically cites a ruling from the Third Chamber of the Supreme Court of Justice of Panama, which declared certain type A slot machine halls illegal. Codere argues that the competent authorities did not properly comply with that decision, creating a regulatory imbalance that hurt its operations.
4. By sending the formal notice to the Panamanian presidency, Codere activated a negotiation period before the case moves to formal arbitration. The process is being brought under the Agreement on the Promotion and Protection of Investments signed between Spain and Panama.
5. Codere said it remains committed to Panama and is willing to keep talking with the government to reach a negotiated solution rather than push the case to an arbitral award. The company currently operates in Panama across land-based gaming and online sports betting and casino platforms, with offerings that include slots, table games, and poker.

The arbitration lands at a moment when Panama has also moved on new gaming regulation. The country recently enacted Law 527, which treats problem gambling as a public health issue and imposes new obligations on operators, including biometric identity and age verification systems and voluntary limits for players.