Latam & Carribean
Paraguay Takes Major Step Toward Ending Gambling Monopoly
Paraguay is on the brink of a gambling revolution, ending the monopoly that has defined its market for decades.
A partially approved bill aims to liberalize gambling, opening the market to private operators and enhancing regulatory oversight.
These changes promise greater competition, increased tax revenue, and a modernized gambling sector benefiting players and the state.
Discover how Paraguay’s bold reforms could transform its gambling landscape and set a precedent in Latin America.
Paraguay Advances Gambling Reforms to End Monopoly and Boost Market Competitiveness
Key Points
- Paraguay’s lower house approved a bill to end the gambling monopoly, pending final approval from the Senate.
- The legislation empowers Conajzar by placing it under the National Tax Revenue Directorate (DNIT).
- Liberalized gambling aims to increase competition, enhance tax contributions, and modernize Paraguay’s gaming industry.
Paraguay has taken a significant step toward transforming its gambling industry, moving to dismantle the monopoly system that has governed the sector for years. On 26 November, the country’s lower house partially approved a bill to amend Law No 1,016/1997, which regulates games of chance. The bill, now headed to the Senate for final approval, could redefine Paraguay’s gambling market by allowing private operators to compete freely.
Ending the Monopoly: A New Era for Gambling in Paraguay
Under the current law, the “exploitation of national games of chance” is exclusively carried out through public tenders. This system has limited competition and restricted the market to a select few operators. However, the proposed bill seeks to liberalize gambling activities, enabling private competitors to enter the market without navigating the tender process.
According to Conajzar President Carlos Liseras, this shift is expected to:
- Democratize the market, fostering greater competitiveness.
- Increase the sector’s tax contributions to the government.
- Deliver broader benefits to both operators and the state.
“This is a fundamental step to democratize the market and allow greater competitiveness,” said Liseras.
Empowering Conajzar as a Modern Regulator
One of the bill’s core components is the enhancement of Conajzar’s regulatory authority. To strengthen oversight, the legislation places the regulator under the jurisdiction of the National Tax Revenue Directorate (DNIT). This integration is expected to improve:
- Revenue collection from gambling operators.
- Institutional effectiveness through streamlined processes.
The Conajzar general director will oversee all aspects of gambling in Paraguay, including coordination, development, control, and supervision. This increased capacity is crucial as the country prepares for a more competitive market landscape.
Reflecting Paraguay’s Social and Economic Evolution
The proposed changes align with Paraguay’s economic and technological growth under its new government, which assumed power in August 2023. Acknowledging the rapid evolution of the gambling sector, the bill states:
“Our country has witnessed marked economic and social changes, which have led to an exponential development of its markets, and gambling has not been left behind.”
This modernization reflects the global shift toward liberalized gambling markets, emphasizing innovation, competition, and effective regulation.
What’s Next for Paraguay’s Gambling Reform?
While the bill has cleared a major hurdle in the Chamber of Deputies, it must now gain Senate approval before becoming law. If passed, the legislation will pave the way for private operators to compete directly in the market, breaking the monopoly system.
Potential Impact of the Reforms
The proposed reforms promise significant benefits:
- Increased Tax Revenue: Liberalization could attract more operators, boosting government revenue.
- Market Modernization: New competition fosters innovation and improved services for consumers.
- Stronger Regulation: Conajzar’s enhanced role ensures robust oversight and accountability.
However, successful implementation will require balancing market liberalization with responsible gambling practices and effective enforcement of new regulations.
Paraguay’s move to end its gambling monopoly signals a bold step toward a more competitive and transparent gaming industry. By empowering Conajzar and opening the market to private operators, the government aims to modernize its gambling landscape while increasing tax revenue and consumer benefits.
As the bill progresses to the Senate, all eyes are on Paraguay’s ability to deliver on its ambitious vision for reform. If successful, these changes could serve as a model for other Latin American nations seeking to modernize their gambling industries. A new era for Paraguay’s gaming sector is just around the corner.