Paraguay approves end to gambling monopoly
On December 17, 2023, the Chamber of Deputies of Paraguay voted in favor of a landmark bill that marks a significant transition in the country’s gambling landscape, moving away from a state monopoly toward a liberalized market.
During a pivotal extraordinary session, lawmakers approved crucial amendments to Paraguay’s existing gambling regulations, specifically addressing Law No 1,016/1997. This shift signifies an important evolution in how gambling activities will be managed and regulated in Paraguay.
The newly approved legislation dismantles the previous framework that mandated national games of chance be conducted solely through public tenders. This policy change is set to foster a more competitive environment for both domestic and international gambling operators.
In a strategic move to enhance regulatory oversight, the bill empowers the National Commission of Gambling (Conajzar) by integrating it with the National Tax Revenue Directorate (DNIT). This structural adjustment is designed to streamline regulatory processes and optimize revenue collection.
According to a press release from the Chamber of Deputies, “The legislation aims to modernize and strengthen the regulation of the sector, with the objective of increasing tax revenues associated with gambling operations.”
Enhanced Tax Contributions from the Gambling Sector
The amendments open the door for private operators to enter the Paraguayan gambling market without the constraints of the previous tender system. This liberalization is expected to invigorate the sector, stimulate competition, and ultimately enhance tax contributions to the government.
Carlos Liseras, President of Conajzar, has voiced optimism regarding the potential for increased revenue from the gambling sector following these reforms. In comments shared with G&M News, he asserted, “This is a critical step towards democratizing the market, allowing for greater competitiveness, which will benefit both operators and the state.”
With the alignment of Conajzar under DNIT, there will be greater institutional efficiency in tax collection processes. The newly structured regulatory body will be tasked with comprehensive oversight of gambling activities across the nation, encompassing coordination, development, control, and supervision.
This legislative change reflects the broader economic strategy of the government, aiming to stimulate Paraguay’s economy following significant social and economic transformations since its administration took office in August 2023.
As outlined in the bill, “Our country has experienced substantial economic and social changes, which have catalyzed the development of various markets—including gambling, which is now influenced by evolving technological innovations and a surge in providers and consumers.”
In conclusion, Paraguay’s step toward liberalizing its gambling market underscores a pivotal moment in the country’s regulatory history, with the potential to drive economic growth and improve the fiscal landscape, while ensuring proper oversight and accountability in a newly competitive environment.
