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In what is being hailed as a landmark decision, the Paraguay Chamber of Deputies approved a bill on December 17th that dismantles the nation’s longstanding gambling monopoly, paving the way for private operators to enter the market.
The decision was finalized at a second extraordinary session of the Chamber of Deputies last Tuesday, where a number of final amendments to the country’s existing gambling legislation (Law No 1,016/1997) were approved. The previous law stated that “exploitation of national games of chance will be carried out exclusively by public tender,” but this was changed, putting an end to the years-long monopoly.
According to a press release from the Chamber of Deputies, the updated bill aims to empower the National Commission of Gambling (Conajzar) by placing it under the oversight of the National Tax Revenue Directorate (DNIT).
“The regulations focus on modernization and stricter regulation of the sector, with the aim of increasing the tax revenues generated by gambling. The inclusion of Conajzar within the structure of the DNIT aims to optimize collection and inspection mechanisms, guaranteeing efficient use of the resources generated by the industry,” the statement reads.
Increased Tax Revenues
One of the driving forces behind this legislative change is the potential for increased tax revenues. By allowing private operators to participate in the gambling market, the government anticipates a significant boost in financial inflows and an improvement in the country’s local economy.
“Our country has witnessed marked economic and social changes, which has led to an exponential development of its markets and gambling has not been left behind by such dynamism. Rather, it has been reached by technological and economic changes that have resulted in new types of gambling as well as in the number of providers and users of them,” the bill reads.
The president of Conajzar, Carlos Liseras, reiterated this view in an earlier interview with G&M News, where he was quoted saying, “It is a fundamental step to democratise the market and allow greater competitiveness, which will translate into benefits for both operators and the state.”
Reactions Follow
As expected, the updated bill sparked massive debates among lawmakers and stakeholders in the country. Deputy Yamil Esgaib (ANR-Capital) was one of the major voices in support of the bill, especially regarding the increased regulatory powers granted to the commission.
“The modification seeks to provide the commission with a solid executing arm, increasing its capacity to enforce resolutions and assuming a more active role in the collection and supervision of games of chance at the country level,” Esgaib said.
Meanwhile, Deputies Adrián Vaesken and Rocío Vallejo were strong opponents of the bill and voiced concerns about the modification of Article 20. Despite the divided opinions, the bill was ultimately passed and currently awaits approval from the executive branch of the Paraguay government.
This is a significant step forward in modernizing Paraguay’s gaming sector, fostering competition, and ultimately driving economic growth. The updated legislation, under the guidance of the National Tax Revenue Directorate (DNIT), will also ensure better management of the sector.
But as the country prepares for this new era, it must adequately prepare for potential challenges relating to responsible gambling practices, anti-money laundering (AML) measures, consumer protections, and more. So, Paraguayans might have to wait a bit before they start playing at these new platforms, as policymakers will need time to establish a comprehensive regulatory framework.
Source: Next.io
