Paraguay Deputies Call for Legislative Reforms to Curb Conajzar’s Licensing Authority

Paraguayan Deputies Demand Restructuring of Gambling Regulatory Powers to Ensure Fair Market Competition

In a significant push for regulatory overhaul, fourteen members of Paraguay’s Chamber of Deputies are advocating for substantial legislative amendments to curtail the national gambling regulator Conajzar’s authority in issuing gambling licenses.

This call for reform is sparked by concerns that Conajzar exploited its powers to unfairly grant Daruma SAM a monopolistic hold over sports betting, pools, and lottery markets. The deputies are rallying for changes to various articles of Paraguay’s gambling law to prevent such concentrations of power and ensure a more equitable market.

The urgency for reform follows a controversial tender process conducted by Conajzar last year. This process, which involved granting a national sports betting franchise across all 17 Paraguayan departments, faced legal challenges from disqualified bidders alleging that the rules favored Daruma SAM. These developments have raised serious questions about the fairness and transparency of Conajzar’s licensing procedures.

The deputies’ proposal aims to align the gambling legislation more closely with the Paraguayan constitution, which prohibits the creation of monopolies, and to uphold the principles of fair competition and market diversity in the gambling sector.

Deputies’ Critique and Proposal: The deputies have criticized Conajzar for awarding exclusive five-year licenses to a single company, Daruma SAM, and seek to amend critical articles in the gambling law to prevent such practices.

Investigation by CONACOM: The Comisión Nacional de la Competencia (CONACOM) has initiated an investigation into Conajzar’s tender process, further highlighting the need for regulatory scrutiny and transparency.

Daruma SAM’s Position: Despite denying collusion with Conajzar, Daruma SAM’s winning of the tender amidst controversy has fueled debates on regulatory integrity and the risk of monopolies in Paraguay’s gambling sector.

Recent Changes at Conajzar: In a notable move, Paraguay’s new president Santiago Peña has initiated major changes within Conajzar, including the appointment of Carlos Augusto Liseras as the new president of the regulator, replacing María Galván del Puerto. These changes signal a potential shift in the regulatory landscape.

The ongoing developments in Paraguay’s gambling sector underscore a critical juncture in its regulatory framework. The deputies’ push for legislative reforms aims to restore balance and fairness in the licensing process, ensuring that the gambling market operates under the principles of transparency and competitiveness. These proposed changes, alongside the recent reshuffling within Conajzar, could mark a new era of regulatory practices in Paraguay, fostering a healthier, more equitable gambling industry.