Paraguay moves to end gambling monopoly as bill to amend law partially approved

In early November, the executive branch of the government presented a bill to amend the current Paraguay gambling legislation (Law No 1,016/1997), including strengthening gambling regulator Conajzar’s position. It also sought to liberalise the country’s gambling market.

The bill aims to achieve this by boosting the powers of the National Commission of Gambling (Conajzar), placing it under the government-powered National Tax Revenue Directorate (DNIT).

The law currently states “exploitation of national games of chance will be carried out exclusively by public tender”, but these activities will be liberalised under the new bill.

The Chamber of Deputies (the lower house of Paraguay’s legislature, which is made up of the National Congress) yesterday partially approved the bill, which was signed by the minister of finance Carlos Fernandez Valdovinos and president Santiago Peña. The document will now to go the Senate for final approval.

Conajzar president Carlos Liseras said yesterday he expects opening the gambling market to competition will enhance the sector’s tax contributions to the government.

“It is a fundamental step to democratise the market and allow greater competitiveness, which will translate into benefits for both operators and the state,” Liseras said in quotes shared by G&M News.

What does the bill propose?

The bill seeks to eliminate the current monopolies and paves the way for private competitors to enter the market. It would mean commercial operators of games of chance could compete in the market, rather than having to secure access through tender processes.

The changes reflect Paraguay’s social and economic shifts under the new government. This came into power in August 2023.

The bill reads: “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.

“Rather, it has been reached by technological and economic changes that have resulted in new types of gambling as well as in the number of providers and users of them.”

Alongside opening the market, one of the core aims of the bill is to improve the effectiveness of Conajzar as a regulator.

Placing Conajzar under DNIT aims to boost revenue collection and strengthen its powers for “institutional optimisation.”

The Conajzar general director will oversee gambling in Paraguay, including coordination, development, control, and supervision.