A new initiative in Paraguay aims to eliminate the country's gambling monopoly to modernize regulation.
This is the latest in a series of attempts to amend Paraguay's Gambling Law No. 1,016/1997. The law currently stipulates that "the development of national gambling games shall be conducted entirely through public bidding."
The National Gambling Commission of Paraguay (Conajzar) was established under Law No. 1,016/1997, which grants it the authority to regulate national gambling activities.
One of the main objectives of the new measures is to bring Conajzar under the jurisdiction of the National Tax Directorate (DNIT) of Paraguay. This move aims to enable it to collect more taxes and improve its efficiency by expanding its powers, thus better fulfilling its duties.
Transforming Conajzar into an Effective Regulatory Body
In addition to strengthening Conajzar's status as a regulator, the plan also aims to encourage "institutional optimization" through an updated legal model.
The new framework will make the General Manager of Conajzar responsible for coordinating, developing, controlling, and supervising the gambling industry in Paraguay.
"By amending the current regulations, Conajzar's powers will be strengthened, making it a truly professional, stable, and solvent regulatory body," it states.
"All of this, accompanied by social and economic changes, which demand the elimination of the legal monopolies that were once established."
Can Paraguay's Gambling Monopoly be Eliminated?
Since the enactment of Law No. 1,016/1997, Paraguay has undergone significant changes, establishing a system that grants national franchises for sports betting and quinela. This new initiative, signed by Finance Minister Carlos Fernández Valdovinos and President Santiago Peña, aims to bring Conajzar "into the 21st century."
As part of this, the draft includes the liberalization of the Paraguayan gambling market, abolishing the legal monopoly. This means that private operators can compete in the market without having to go through a bidding process for entry.
Law No. 1,016/1997 allows for the exclusive operation of lotteries, telephone bingo games, and sports betting nationwide. Bingo halls and racetracks can operate at the departmental level, while at the municipal level, types of gambling such as horse racing and electronic gambling venues will be authorized.
The draft proposal notes that the legal monopoly "must be eliminated" to address the social and economic transformations currently underway under the new government leadership in Paraguay since August 2023.
The document states: "Our country has experienced significant economic and social transformations, leading to exponential market growth, and the gambling industry has not lagged behind this dynamism."
"On the contrary, this is due to technological and economic changes that have led to the emergence of new types of gambling and an increase in the number of gambling providers and users."
