Paraguay Votes to End Gambling Monopoly, Liberalize Market

Following several heavy weeks of debate, Paraguay has finally passed Law No. 1016/1997 which is overhauling the gambling industry’s existing regulatory framework and opening up the market for private licensee holders which should help boost tax revenue.

Senate and House Back Gambling Regulation in Paraguay

The law passed through the Senate on Thursday, December 19, and then proceeded to an extraordinary session in the Chamber of Deputies on Tuesday, December 24, clearing the last hurdle and allowing the country to step into the new year on a firmer foothold.

The measure was originally pitched in early November this year and sought to improve regulation, financial oversight, and the breakdown of existing monopolies.

The law will see the restructuring of the National Gaming Commission which will operate under the National Directorate of Tax Revenues, as the country is keen to make sure that the new legislation will not falter in achieving its main goal – which is to oversee a liberalized market and ensure tax collection.

Paraguay has seen it fit to harmonize its own gambling regulation with international standards and ensure that it follows proven formulae for generating additional tax revenue. Paraguay’s gambling overhaul comes at a time when much is happening in other global markets.

Finland, one of the few remaining monopolies in Europe, has acquiesced to shifting to a liberalized model as well. Meanwhile, in Zimbabwe, the local government has introduced a 10% tax on sports betting winnings to help bolster the state’s budget.

Harmonizing Local and International Gambling Laws

The changes in Paraguay were met with initial opposition from Deputies Adrián Vaesken and Rocío Vallejo, who ultimately failed to convince their colleagues.

Deputy Yamil Esgaib argued that the gaming commission only stands to benefit from the change of structure and the new law that will enhance its ability to collect money from the gambling industry and ensure that Paraguay has a resilient future-proofed framework in the process.

The current changes benefited from the strong backing of President Santiago Peña who took office in 2023 and has been a vocal supporter of a liberalized gambling market.

Not least, the president’s office has argued that the increasing technological innovation and proliferation of gambling companies required a regulatory framework that is fit to purpose.