The Paraguayan House of Representatives has approved a bill aimed at ending the country's gambling monopoly and opening up its market. This reform amends Law No. 1,016/1997, aimed at modernizing the industry, strengthening regulation, and increasing tax revenue.
The bill updates the country's existing gambling regulations (Law No. 1,016/1997), with reforms to modernize and standardize the gambling industry, paving the way for private operators to enter the market.
Gambling Legislation Amendment
The approved bill eliminates the monopoly that restricted gambling operations to public tenders. This opens the door for private operators to enter the market, promoting competition and diversity in the industry.
The bill also strengthens the powers of the National Gambling Commission (Conajzar), placing it under the National Tax Administration (DNIT). This move aims to improve tax collection, market supervision, and regulatory enforcement.
Under the new framework, the General Manager of Conajzar will be responsible for overseeing gambling activities in Paraguay, including its coordination, development, supervision, and regulation.
Focus on Modernization and Economic Growth
The law aims to update the gambling industry and increase tax revenue. A press release from the House of Representatives emphasizes the government's intention to optimize the use of gambling industry resources while strengthening regulatory mechanisms.
Conajzar President Carlos Liseras welcomed these changes, stating: "This is a fundamental step towards democratizing the market and enhancing competitiveness, which will benefit both operators and the nation."
He also highlighted that incorporating Conajzar into the DNIT system would bring "institutional optimization," ensuring better tax collection and market regulation.
The reform aligns with the government's broader goals of promoting economic development and adapting to social and technological changes. A statement in the bill acknowledges that Paraguay's gambling industry is influenced by the country's economic dynamism, technological advancements, and the growing number of gambling providers and users.
Legislators' Reaction
The amendment sparked debate among legislators. While Deputies Adrián Vaesken (PLRA-Central) and Rocío Vallejo (PPQ-Capital) opposed the modification of Article 20, Deputy Yamil Esgaib (ANR-Capital) supported the amendment, noting that "the modification aims to provide the commission with a robust executive body, enhance its decision-making capabilities, and play a more active role in collecting and supervising gambling at the national level."
Following this positive opinion, the plenary session conducted a comprehensive study and approved the document, which will be sent to the executive branch for final approval.
