In a pivotal step towards modernizing its gambling sector, the Paraguay Chamber of Deputies has approved a bill that marks the end of the country’s state-run gambling monopoly. The reform, passed on December 17, 2024, introduces sweeping changes aimed at liberalizing the market, allowing private operators to enter the industry for the first time.
Dismantling the Monopoly
Under the newly passed bill, Paraguay will finally dismantle its restrictive gambling monopoly, which had limited operations to public tenders only. This change opens the door to private companies, paving the way for more competition and variety within the country’s gambling market. The approved amendments to Law No. 1,016/1997 signal Paraguay’s shift towards a more modernized approach to gambling, one that aligns with global industry trends.
For years, the country’s gambling activities had been regulated under a public monopoly system. However, the newly passed reforms will allow private businesses to enter the market, fueling competition and economic diversification. These changes are expected to benefit both consumers and the overall economy, with the government anticipating an increase in tax revenue from the sector.
Strengthening Regulatory Framework
One of the central aspects of the reform is the restructuring of the National Commission of Gambling (Conajzar). The bill places Conajzar under the supervision of the National Tax Revenue Directorate (DNIT), a move that’s expected to improve the regulatory oversight and revenue collection processes within the gambling sector. By streamlining the commission’s operations under DNIT, the government aims to bolster institutional efficiency and ensure better compliance with the new regulations.
The newly restructured Conajzar will have expanded responsibilities, with its general director overseeing all gambling-related activities, including regulation, coordination, and enforcement across the country.
A Shift in Paraguay’s Economic Landscape
The bill’s approval is part of a broader effort to modernize Paraguay’s economic policies in response to changing global trends. The country has witnessed considerable social and economic shifts in recent years, with technological advancements and evolving market conditions influencing the gambling industry. By opening the gambling sector to private operators, the government hopes to foster economic growth, attract foreign investment, and improve the competitive landscape.
The new law aims to optimizeParaguay’s gambling industry, ensuring that it can keep pace with technological changes and meet the growing demand for a more diverse range of gambling products and services.
Lawmakers React to the Bill
The reform has not been without controversy. While many lawmakers expressed support for the bill, there were some dissenting opinions regarding certain changes, particularly the amendments to Article 20. Deputy Adrián Vaesken (PLRA-Central) and Deputy Rocío Vallejo (PPQ-Capital) voiced their opposition to the changes, suggesting that some parts of the bill needed further revision. However, Deputy Yamil Esgaib (ANR-Capital) strongly supported the reform, stressing that it would help increase the commission’s capacity to enforce regulations and oversee gambling activities effectively.
Following the debate, the bill was approved by the Chamber of Deputies and is now on its way to the executive branch for final approval. If enacted, the bill will fundamentally reshape Paraguay’s gambling sector and introduce significant changes to its economic structure.
What Lies Ahead for Paraguay’s Gambling Industry
This reform is expected to be a turning point for Paraguay’s gambling industry. With the end of the monopoly and the introduction of private operators, the country is poised to see increased competition, better services for players, and higher tax revenues. The restructured regulatory framework, under the oversight of DNIT, ensures that the market will be better managed and regulated moving forward.
The introduction of private operators in Paraguay’s gambling sector is part of a broader strategy to stimulate economic development and align with global trends in the gaming industry. With these changes, Paraguay is positioning itself as an increasingly competitive and dynamic player in the international gambling market.
Source:
Sancionan nuevo régimen jurídico para la explotación de los juegos de azar, Cámara de Diputados de Paraguay, December 17, 2024.