Paraguay Takes a Major Step Towards Liberalizing Its Gambling Market
In a groundbreaking move, the Chamber of Deputies in Paraguay has passed a bill to dismantle the country’s exclusive gambling monopoly, opening the door for private operators to enter the market. This landmark legislation, approved on December 17, 2024, is set to reshape the gambling industry in Paraguay, modernize its regulation, and improve tax collection within the sector.
Breaking the Gambling Monopoly
The bill, which amends Law No. 1,016/1997, marks the end of a longstanding system that had previously limited gambling operations to government-run public tenders. Under the new framework, private companies will be able to operate within Paraguay’s gambling market, driving competition and introducing various services to players.
This reform is expected to create a more diverse and dynamic market, benefiting consumers by increasing their options for gambling entertainment. Additionally, the changes aim to increasetax revenues from the sector, with the government anticipating a substantial boost to the national economy.
Enhancing Regulatory Oversight with Conajzar's Expanded Role
A key component of the reform involves restructuring Conajzar (the National Commission of Gambling). Under the new law, Conajzar will now operate under the supervision of the National Tax Revenue Directorate (DNIT). This restructuring is designed to improve the regulatory framework, enhance market supervision, and streamline revenue collection.
The newly strengthened role of Conajzar is expected to improve its capacity to regulate gambling activities, ensuring greater compliance across the industry. The general director of Conajzar will now oversee the day-to-day operations, including the development, coordination, and supervision of gambling activities in Paraguay.
Aiming for Economic Growth and Market Modernization
The approval of this bill aligns with Paraguay’s broader economic goals. The country has undergone significant social and economic changes in recent years, with an increasing number of gambling providers and players entering the market. Technological advancements have also played a part in shifting the landscape of the gambling industry.
The move to open up the market to private operators is a direct response to these shifts, and the government hopes it will help modernize the gambling sector and boost economic growth. The market opening will also attract foreign investments, further diversifying the country’s economy and supporting Paraguay’s broader development goals.
Lawmakers' Reactions and Next Steps
The bill has not been universally welcomed. Some lawmakers, such as Deputy Adrián Vaesken (PLRA-Central) and Deputy Rocío Vallejo (PPQ-Capital), have opposed certain amendments, particularly the changes to Article 20. Despite these concerns, the reforms have largely been supported by other lawmakers, including Deputy Yamil Esgaib (ANR-Capital), who praised the changes for strengthening Conajzar and enhancing its regulatory role.
Following approval from the Chamber of Deputies, the bill will now proceed to theexecutive branch for final approval. Once enacted, this reform will lead to sweeping changes in Paraguay's gambling industry, with private operators entering the market for the first time in the country’s history.
The approval of this bill marks a new era for Paraguay’s gambling sector. With the end of the gambling monopoly, private operators will now have the opportunity to enter and compete in the market, creating more options and better services for players. These changes are expected to result in a more competitive market, increased tax revenues, and a dynamic shift in the industry’s landscape.