Paraguay has approved a bill that takes a step towards gambling regulatory reform, including ending market monopolies.
In early November, the government's executive branch introduced a bill aimed at amending Paraguay's current gambling law (Law No. 1,016/1997), which includes strengthening the position of the gambling regulatory authority Conajzar. The bill also seeks to liberalize the country's gambling market.
The bill aims to achieve this goal by expanding the powers of the National Gambling Commission (Conajzar) and placing it under the control of the government's National Tax Administration (DNIT).
The current law stipulates that "the development of national gambling games will be conducted entirely through public tenders," but the new bill will liberalize these activities.
The House of Representatives (the lower house of Paraguay's legislative body, composed of the National Congress) partially approved the bill yesterday, signed by Finance Minister Carlos Fernández Valdovinos and President Santiago Peña. The document will now be submitted to the Senate for final approval.
Conajzar President Carlos Liseras said yesterday that he expects the opening of the gambling market and the introduction of competition to increase the industry's tax contributions to the government.
G&M News quoted Liseras saying: "This is a fundamental step towards the democratization of the market and enhancing competitiveness, which will benefit both operators and the state."
What does the bill propose?
The bill aims to eliminate the current monopoly, paving the way for private competitors to enter the market. This means that commercial operators of gambling games can compete in the market without having to go through a tender process to gain access.
These changes reflect the social and economic changes under the new government that took office in Paraguay in August 2023.
The bill states: "Our country has undergone significant economic and social transformations, leading to exponential market development, 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."
In addition to opening up the market, one of the core goals of the bill is to enhance the effectiveness of Conajzar as a regulatory body.
Incorporating Conajzar into DNIT aims to increase tax revenue and enhance its "institutional optimization" powers.
The General Manager of Conajzar will be responsible for overseeing Paraguay's gambling industry, including coordination, development, control, and supervision.
