---
title: "Supreme Court voids Panama’s Lotto and Pega 3 concession extension"
date: 2026-04-16
author: ""
url: https://panamadaily.news/lotto-concession-panama-supreme-court/
categories:
  - "Economy"
  - "News"
  - "Politics"
tags:
  - "Lotería Nacional"
  - "Lotto"
  - "Panama lottery"
  - "Pega 3"
  - "Scientific Games"
  - "Supreme Court"
---

# Supreme Court voids Panama’s Lotto and Pega 3 concession extension

## What Happened

Panama’s Supreme Court of Justice has declared illegal the fifth addendum to the Lotto and Pega 3 concession contract, clearing the way for the annulment of the extension granted to Scientific Games LLC.

The Third Chamber ruled unanimously on April 13 that the addendum, signed on February 24, 2023, unlawfully extended the contract for another 10 years. The concession had been tied to the National Charity Lottery, or Lotería Nacional de Beneficencia, since 2013.

Despite the ruling, the company is still promoting a drawing for Saturday, April 18.

## How the Contract Changed

The original agreement was awarded on March 13, 2013, for 10 years to the consortium Panama Lottery Technology Services, made up of Scientific Games International Inc. and Panama Scientific Gaming, S.A. It began as an exclusive contract for instant lottery sales, known locally as raspe y gane.

Over time, the deal expanded through five addenda. One of the first changes, signed on September 24, 2013, opened the door to electronic or online lottery. Another shifted advertising and marketing costs to the Lotería Nacional. The latest addendum is the one the court has now declared unlawful.

That fifth addendum not only extended the concession but also allowed Lotto sales through billeteros, with the National Lottery required to give the company 15% of gross sales.

## Legal and Political Fallout

The nullity case was filed by attorney Pedro Meilán, who argued that the lottery should have called a new public tender instead of automatically extending the contract. That argument was backed in 2024 by then government prosecutor Rigoberto González.

President José Raúl Mulino has openly criticized the arrangement since taking office in July 2024, calling it a bad deal for the state and saying he had instructed officials to withdraw the concession. Mulino also said the electronic lottery generated about $900,000 in gross weekly sales, while the Lotería Nacional carried costs for advertising, marketing, and even the design and printing of tickets.

The court decision was issued by magistrates Gisela Agurto, who served as rapporteur, María Cristina Chen Stanziola, and Carlos Vásquez Reyes.

## Why It Matters

The ruling targets one of the country’s best-known gambling concessions and raises major questions about how public contracts are extended in Panama. It also puts renewed scrutiny on the relationship between the state lottery and private operators that have benefited from successive contract modifications over more than a decade.

The original concession was signed during the administration of Ricardo Martinelli, when Mulino served as minister of public security. The company behind the concession is now Scientific Games LLC, a Delaware-registered firm based in Alpharetta, Georgia, with a Panama branch listed in public records.