Paraguay Passes Bill to End Gambling Monopoly and Liberalize iGaming Market

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December 24th, 2024
Back Paraguay Passes Bill to End Gambling Monopoly and Liberalize iGaming Market

In a historic development, the Paraguay Chamber of Deputies has passed a bill that will dismantle the country’s long-standing gambling monopoly, opening the door for private operators to enter the market. This major reform, approved on December 17, 2024, aims to modernize the gambling industry, improve regulatory oversight, and increase tax revenues generated from the sector.

Ending the Gambling Monopoly

The approved bill amends Paraguay’s existing gambling law, Law No. 1,016/1997, which had previously restricted gambling operations to those granted through public tenders. With the new bill, private operators will be able to enter the market, fostering competition and diversity in the industry. This change is expected to significantly enhance the gambling market by offering more variety and better options for consumers, while simultaneously boosting economic growth.

As noted in a release from the Chamber of Deputies, the legislation focuses on modernizing and tightening regulations to increase tax revenues derived from gambling activities. The reform is designed to align Paraguay’s gambling industry with the broader global market, fostering more competitive and sustainable growth.

Strengthening Regulatory Oversight

One of the most crucial elements of the bill is the restructuring of the National Commission of Gambling (Conajzar). Under the new law, Conajzar will now operate under the umbrella of the National Tax Revenue Directorate (DNIT). This move is intended to enhance revenue collection, market oversight, and regulatory enforcement, ensuring the sector is better managed and compliant with updated standards.

The general directorof Conajzar will now be tasked with overseeing gambling activities throughout the country. This includes coordination, development, supervision, and regulation to ensure the market runs smoothly and efficiently.

The Role of Technology and Economic Growth

The bill highlights Paraguay’s drive to modernize its gambling sector to keep up with the country’s technological and economic advancements. The reforms also address the growing number of gambling providers and consumers, which have been influenced by the country’s expanding market dynamics. The increased participation of private operators is seen as essential for ensuring the sector adapts to current trends and meets consumer demand.

The government’s goal is to create a competitive environment that will lead to increased tax revenues from gambling, while also modernizing the industry to meet global standards. This move marks a significant shift in Paraguay’s approach to gambling, encouraging both economic growth and market liberalization.

Reactions from Lawmakers

The bill was met with both support and opposition among lawmakers. While Adrián Vaesken (PLRA-Central) and Rocío Vallejo (PPQ-Capital) expressed concerns over certain amendments, Deputy Yamil Esgaib (ANR-Capital) supported the changes, emphasizing that these reforms would improve Conajzar’s ability to enforce regulations and collect revenues more effectively.

The changes were ultimately approved, and the bill will now be sent to the executive branch for final approval, marking a major step toward reshaping the country’s gambling landscape.

A New Era for Paraguay’s Gambling Industry

This reform marks a turning point in Paraguay’s gambling sector. By ending the monopoly and introducing private operators, Paraguay is fostering a more competitive and dynamic market that will benefit both consumers and the economy. The enhanced regulatory framework, under the guidance of DNIT, will ensure better management of the sector, which is expected to bring in greater tax revenue and a more diverse range of gambling options.

With the final approval of the bill pending, Paraguay is poised to enter a new era for its gambling industry—one that encourages growth, innovation, and greater opportunities for both operators and the state.

Source:

Sancionan nuevo régimen jurídico para la explotación de los juegos de azar, Cámara de Diputados de Paraguay, December 17, 2024.

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