Paraguay to End Gambling Monopoly, Open Market for Private Operators

Paraguay’s Chamber of Deputies has approved a groundbreaking bill to end the gambling monopoly, paving the way for private operators to enter the market.

On Tuesday, December 17, the Chamber of Deputies passed amendments to Law No. 1,016/1997, effectively dismantling the exclusive monopoly on games of chance. This marks a significant shift in Paraguay’s gambling industry, aiming to modernise the sector, enhance regulatory oversight, and increase tax revenues.

Key Legislative Changes

The approved bill places the National Commission of Gambling (Conajzar) under the oversight of the National Tax Revenue Directorate (DNIT), a move intended to streamline revenue collection and improve institutional efficiency. The legislation also strengthens regulations to ensure compliance and boosts contributions from the gambling sector to the national tax base.

In a statement, Conajzar President Carlos Liseras described the reform as pivotal for market liberalisation. “This is a fundamental step to democratise the market and allow greater competitiveness, which will benefit both operators and the state,” he noted.

Anticipated Industry Impacts

The reforms will allow private operators to compete directly without the previously mandatory government tender process. Conajzar will oversee all gambling operations, ensuring stricter market control and alignment with the government’s broader economic agenda introduced in August 2023.

The legislation also reflects technological advancements and shifts in consumer preferences, acknowledging the rise of new gambling formats and service providers.

Next Steps

The bill now awaits review by the executive branch. If enacted, the changes promise to foster market competition, modernise the industry, and provide a significant boost to Paraguay’s tax revenues.