The Paraguayan government has introduced a bill to the Chamber of Deputies to transform the country’s gambling landscape. The new proposal seeks to update Law No. 1,016/1997, which has regulated Paraguay’s gambling market for over two decades. The proposed changes would dismantle gambling monopolies, opening the market to private competition and strengthening the powers of Paraguay’s National Gambling Commission (Conajzar). This legislative effort aligns with broader modernization goals to adapt to technological advancements and meet Paraguay’s evolving economic needs.

Signed by Finance Minister Carlos Fernandez Valdovinos and President Santiago Peña, the bill outlines the government’s intention to bring Paraguay’s gambling regulations “into the 21st century.” At the core of these changes is a focus on empowering Conajzar to act as a more efficient and professional regulatory body that can respond effectively to market demands and social shifts.

Strengthening Conajzar as Paraguay’s Gambling Regulator

One of the primary reforms proposed is the integration of Conajzar under the National Directorate of Tax Revenue (DNIT). By placing Conajzar within DNIT’s structure, the government hopes to provide the commission with a stronger executive arm, enhancing its authority to enforce regulations and manage revenue collection. According to the project’s explanatory statement, DNIT’s proven experience in tax collection would reinforce Conajzar’s operational capacity, enabling it to take a more proactive role in market oversight.

This integration is expected to help Conajzar address historical enforcement challenges by improving its ability to monitor, regulate, and control gambling operations across the country. Currently, Conajzar’s limited power has hindered its effectiveness as a regulatory body, but the proposed changes would allow it to develop a stable and transparent market environment. With this integration, Conajzar could also benefit from DNIT’s established procedures and resources, improving its capacity to implement resolutions and strengthen compliance across the sector.

To support these changes, the bill also proposes expanded powers for Conajzar’s general director, who would be responsible for coordinating, developing, and supervising the nation’s gambling activities. This role would ensure that Conajzar can adapt regulatory practices to keep up with industry trends and fulfill its role as a protector of consumer interests.

Opening the Gambling Market: Eliminating Monopolies

Since the enactment of Law No. 1,016/1997, Paraguay’s gambling market has operated under a monopoly system, granting exclusive rights for various gambling sectors, including sports betting and lotteries, through national franchises. The new bill seeks to dismantle these monopolies, allowing private operators to enter the market and compete openly. This shift is intended to create a fair and competitive market, one that no longer restricts operators to specific licenses obtained through public tender processes.

The initiative aims to foster a more dynamic gambling environment, encouraging competition among private operators to benefit consumers. By removing legal monopolies, the government hopes to attract new industry participants and stimulate economic growth within the gambling sector. For Paraguay, this means that licensed private operators could enter previously restricted markets without the need for exclusive contracts, boosting revenue and increasing consumer options.

The bill acknowledges Paraguay’s shifting social and economic conditions, which have seen technological advancements and increased consumer interest in diverse forms of gambling. It states that the legal framework must evolve to reflect these changes, removing barriers that have previously limited market growth. As the proposal notes, “Our country has witnessed marked economic and social changes, which has led to an exponential development of its markets, and gambling has not been left behind by such dynamism.”

Enhanced Enforcement and Market Oversight Measures

Beyond market liberalization, the bill includes provisions to help Conajzar combat illegal gambling. The proposed legislation would empower Conajzar to close unlicensed establishments and confiscate equipment used in unlawful operations, improving regulatory control and ensuring consumer protection. This move is part of the government’s broader strategy to create a well-regulated gambling environment by supporting Conajzar’s enforcement capabilities.

Under these new powers, Conajzar would work to eliminate unregulated gambling activities that could harm the legal market. By cracking down on illegal operators, the government aims to improve industry transparency and ensure that the market benefits from licensed, tax-compliant operators. This approach aligns with the DNIT’s mandate to support transparent revenue collection and legal market growth.

Broader Impact on Paraguay’s Economic and Social Landscape

The government views this bill as part of a series of state reforms aimed at optimizing resources and offering more agile and efficient public services. By modernizing Conajzar and fostering a competitive gambling market, the government aims to boost revenue from the gambling sector, providing greater economic benefits for Paraguay. Additionally, the proposed changes are designed to enhance Conajzar’s ability to respond to industry trends and meet the needs of consumers, who now demand more varied and technologically advanced gambling options.

In its explanatory statement, the Executive Branch emphasized that the proposal seeks to create a “strong, modern Conajzar” that can effectively oversee Paraguay’s gambling industry. By incorporating changes that reflect the realities of the current market, the government hopes to improve oversight and secure a larger share of gambling-related revenue.

For Paraguay, a competitive and well-regulated gambling sector has the potential to drive substantial economic growth. By eliminating monopolies, empowering Conajzar, and enhancing enforcement mechanisms, the government is positioning itself to foster a more vibrant gambling market in line with global standards for regulatory practices.

Source:

Cámara de Diputados de Paraguay. Presentan proyecto para modernizar ley de juegos de azar y optimizar la administración pública.

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