Paraguay Proposes Major Reforms to Gambling Law, Seeking to End Monopoly

On November 5, 2024, Paraguay’s government put forward a groundbreaking bill to transform the country’s gambling industry. This new legislation aims to end monopolies and tighten regulatory control. The proposal seeks to change and build upon the current Law No. 1016/1997, which oversees gambling operations in Paraguay.

Proposed Reforms to Revitalize the Gambling Sector and Enhance Oversight

The main goal of this reform is to bring the legal system up to date making room for more competition and better management in the gambling sector. The bill suggests major revisions to important sections of Law No. 1016/1997. These changes cover various aspects of regulation, financial oversight, and the breakdown of existing monopolies.

One of the main goals of the plan is to break up the legal monopoly that now controls gambling in the country. The current system allows gambling operations such as lotteries and sports betting, through public bids, which limits private involvement. The new idea aims to open up the market by letting private companies join in, which should boost competition and cut down on monopoly control.

Along with these market shifts, the bill also seeks to boost Conajzar’s role, the group in charge of overseeing the gambling sector. The plan suggests putting Conajzar under the Dirección Nacional de Ingresos Tributarios (National Tax Revenue Directorate), which would help the agency become more productive in getting revenue and enforcing rules. This change is likely to make operations smoother and ensure better money oversight, as Conajzar will have more power to control gambling activities across the country.

New Gambling Law Aims to Align Paraguay’s Regulations with Economic Realities and Social Dynamics

The suggested changes show a wider push to update different parts of Paraguay’s government. Since President Santiago Peña took office in 2023, his team has tried to put in place much-needed fixes to improve how the country is run and how public services are delivered. The new gambling law is thought to be part of these efforts to bring the legal and government set up in line with today’s economic realities.

The new bill points out that Paraguay has seen big social and economic shifts, which have brought new forms of gambling and more companies and players into the market. It recognizes the sector’s growing energy driven by new tech, and stresses the need for updated rules to keep up with these changes.

If it becomes law, the new bill would bring about a big change in how Paraguay handles gambling rules. It aims to make the market more open and fair, while also giving the country better ways to watch over and tax gambling. Right now, Congress is looking at the bill. If it passes, it could change the gambling scene in Paraguay.