Paraguay is taking a significant step toward transforming its gambling industry. In early November 2024, the government presented a bill that aims to amend the country’s gambling legislation (Law No 1,016/1997) and liberalise the market by ending the current monopoly on gambling operations. This initiative, championed by the government’s executive branch, has now been partially approved by the Chamber of Deputies and will move forward to the Senate for final approval.
Key Points of the Bill
The primary objective of the bill is to open up the gambling market to private companies, moving away from the exclusive public tender system that currently governs the industry. Under the new framework, operators will no longer be required to secure gambling rights through tenders. Instead, they will be able to enter the market more freely, fostering competition and allowing for a greater number of stakeholders to operate within the gambling sector.
One of the key provisions of the bill is the strengthening of the National Commission of Gambling (Conajzar), which will be placed under the National Tax Revenue Directorate (DNIT). This move is designed to improve the regulation and oversight of the sector, while also boosting the country’s ability to collect taxes from gambling operations.
Carlos Liseras, President of Conajzar, has expressed optimism about the bill, stating that the liberalisation of the gambling market will lead to enhanced tax contributions for the government, better competitiveness, and more opportunities for both operators and workers in the industry.
Economic and Social Implications
The bill comes at a time of significant social and economic change in Paraguay, with the country’s market undergoing rapid development. As noted by Liseras, technological and economic advancements have spurred the growth of new types of gambling, as well as an increasing number of both providers and users.
Paraguay’s shift toward a more competitive gambling environment reflects the broader economic policy changes under the current government, which came into power in August 2023. The bill is expected to attract more international investments, creating new job opportunities and contributing to the growth of the Paraguayan economy. The competition introduced by the bill will allow workers, such as lottery brokers, to have a choice in selecting which companies to work with, thereby promoting a healthier job market.
Deputy Billy Vaesken, who supported the bill, emphasized that the legislation would create more opportunities within the gambling sector and lead to a more dynamic and diverse market. He explained that greater competition would enable different companies to offer a variety of games of chance, including lotteries, benefiting both workers and consumers.
What’s Next?
The bill has been approved by the Chamber of Deputies and will now be reviewed by the Senate. If approved, the changes could signal a new era for Paraguay’s gambling industry, promoting growth, competition, and innovation. The government hopes that this shift will lead to increased foreign investment, more jobs, and better working conditions in the sector, making it a significant driver for the Paraguayan economy in the coming years.
Source:
“Diputados aprueban eliminar monopolio de juegos de azar”, abc.com.py, November 26, 2024.
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