During an extraordinary session on Tuesday (December 24), Paraguay’s Chamber of Deputies passed a plan to alter the country’s gaming rules.
The law, titled “That modifies and expands Law No. 1,016/1997, which establishes the legal regime for the exploitation of games of luck or chance,” seeks to modernize the industry and raise government revenue through stricter regulation and enforcement.
After consideration, the paper, which had been returned from the Senate Chamber with amendments, was approved.
Among the most prominent changes is the restructuring of the National Gaming Commission (Conajzar), which will now be overseen by the National Directorate of Tax Revenues (DNIT).
This integration is expected to strengthen Conajzar’s ability to enforce regulations, improve collection processes, and oversee the gambling business.
The reform establishes Conajzar as a more robust and active body in the oversight and control of gambling activities throughout the country.
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The changes generated controversy among legislators. Deputies Adrián Vaesken and Rocío Vallejo raised concerns about modifications to Article 20 of the statute, questioning their ramifications.
In contrast, Deputy Yamil Esgaib argued in favor of the changes, emphasizing their potential to boost Conajzar’s executive duties.
Esgaib stated that the modifications are intended to make the commission a more formidable enforcement organization, with a greater involvement in tax collection and regulatory monitoring.
Modernizing Paraguay’s Gambling Industry
The proposed amendments are part of a larger push to improve Paraguay’s gambling industry.
Lawmakers emphasized the significance of integrating regulatory frameworks with international best practices in order to attract investment, promote openness, and maximize the industry’s contribution to public money.
The aim of the reforms is to maximise tax revenues earned by gambling, a business with significant economic potential.
The gaming market deregulation is one of the new legislation’s transformational characteristics. The law proposes eliminating monopolies that have long controlled the sector, allowing for increased competition among operators.
This approach is designed to broaden the market by allowing more bidders to compete at the national, departmental, and municipal levels.
Proponents say that increasing competition will improve service quality, drive innovation, and create a more equitable system for both operators and consumers.
Long overdue
Monopolies have long controlled Paraguay’s gaming business, which has limited competition and is regulated centrally. Reform efforts in the sector began in earnest in the early 2000s, prompted by calls for increased openness and economic efficiency.
Over the years, the discussion over gambling reform has revolved around balancing the need for government monitoring with the potential benefits of a liberalised market.
Previous attempts at reforming the sector were met with opposition from established interests and regulatory difficulties. However, the growing awareness of gambling as a key source of tax income has fueled the movement for change.
The current legislative drive is the result of years of advocating for a more competitive and well-regulated gambling industry.
Now that the measure has been approved, the Executive Branch must put it into action. Conajzar’s incorporation into the DNIT structure, as well as the removal of monopolistic tactics, herald a new era in Paraguay’s gambling business.
Market liberalisation is intended to attract new players, increase investment, and create job possibilities. However, these developments will necessitate strong enforcement methods to minimize possible problems, such as unlawful gaming, and to assure legal compliance.
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