Paraguay’s Chamber of Deputies has passed a bill 1

Paraguay’s Chamber of Deputies has taken a significant step towards transforming its gambling industry by passing a bill aimed at ending the country’s long-standing gambling monopoly. This legislative move, approved on November 26, 2024, is expected to liberalize the market, allowing for greater competition and diversity among gambling operators.

Key Takeaways

• The bill amends Law No. 1,016/1997, which governs gambling operations in Paraguay.
• It aims to eliminate the existing monopoly by allowing private operators to enter the market.
• The National Commission of Gambling (Conajzar) will be strengthened and placed under the National Tax Revenue Directorate (DNIT).
• The legislation is expected to increase tax revenues and improve working conditions for lottery retailers and other stakeholders.

Legislative Background

The initiative to reform the gambling sector was presented by the government and has received backing from President Santiago Peña. The bill seeks to dismantle the exclusive public tender system that has historically governed gambling operations in Paraguay. By allowing private companies to enter the market, the government aims to foster competition and enhance the overall gambling landscape.

Deputy Rocío Abed highlighted that the bill responds to public demand for de-monopolization, emphasizing the need for a more competitive environment in the gambling sector. The proposed changes were thoroughly analyzed by various commissions, ensuring that the potential social impacts were considered.

Strengthening Regulatory Framework

One of the key provisions of the bill is the enhancement of the National Commission of Gambling (Conajzar). By placing it under the DNIT, the government aims to improve regulatory oversight and increase tax collection from gambling activities. This move is expected to lead to better governance and a more structured approach to managing the gambling market.

Carlos Liseras, President of Conajzar, expressed optimism about the bill, stating that it would democratize the market and create a more competitive environment. The new framework will allow for a wider range of gambling options, benefiting both operators and consumers.

Economic and Social Implications

The passage of this bill comes at a time of significant economic and social change in Paraguay. The government, which took office in August 2023, has been focused on modernizing various sectors of the economy, including gambling. The liberalization of the gambling market is expected to attract foreign investment, create jobs, and enhance the overall economic landscape.

Deputy Billy Vaesken, a supporter of the bill, emphasized that the legislation would lead to improved working conditions for lottery retailers and other stakeholders. With the end of the monopoly, companies will be able to compete for the business of lottery sellers, fostering a healthier job market.

Next Steps

Having passed the Chamber of Deputies, the bill will now move to the Senate for final approval. If successful, this legislation could mark a new era for Paraguay’s gambling industry, promoting growth, competition, and innovation. The government is hopeful that these changes will lead to increased foreign investment and better opportunities for workers in the sector, positioning gambling as a significant driver of economic growth in the coming years.