Paraguay approved a major gambling law reform

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The Chamber of Deputies in Paraguay approved a major gambling law reform.

The bill, named “That modifies and expands Law No. 1,016/1997, which establishes the legal regime for the exploitation of games of luck or chance” focuses on updating the gambling sector and increasing state income via stronger regulatory measures. It was approved after modifications from the Chamber of Senators were considered.

One of the key changes involves restructuring the National Gaming Commission (Conajzar) to operate under the National Directorate of Tax Revenues (DNIT). This integration aims to strengthen Conajzar’s ability to enforce regulations, improve tax collection, and enhance oversight of the gaming industry. Also, the reform establishes Conajzar as a more active and robust entity in managing and supervising gambling activities nationwide.

These modifications prompted debate among lawmakers. Deputies Adrián Vaesken and Rocío Vallejo raised concerns over changes to Article 20 of the law, questioning their potential implications. In contrast, Deputy Yamil Esgaib supported the amendments, highlighting their potential to enhance Conajzar’s executive functions.

Esgaib emphasized that the changes aim to empower the commission as a key enforcement body with an expanded role in regulatory oversight and tax collection.

The reforms aim to modernize Paraguay’s gambling sector, aligning regulations with international standards to attract investment, ensure transparency, and maximize public revenue. Key changes include optimizing tax revenues and liberalizing the market by eliminating monopolies. This move promotes competition, allowing more operators to bid at various levels, fostering innovation, improving service quality, and ensuring fairness for operators and consumers.

Paraguay’s path to reform​

Paraguay’s gambling industry, historically dominated by monopolies and centralized regulation, is undergoing significant reform. Calls for transparency and economic efficiency have driven efforts since the early 2000s, with debates focusing on balancing government oversight and market liberalization.

Earlier reform attempts faced resistance from vested interests and regulatory challenges, but the recognition of gambling’s potential as a tax revenue source has renewed efforts. Also, the recently sanctioned bill represents years of advocacy for a competitive and regulated gambling environment.

The changes include integrating Conajzar into the DNIT and ending monopolistic practices. The market liberalization aims to attract new operators, boost investments, and create jobs, however, robust enforcement will be crucial to address illegal gambling and ensure compliance with the law.