How Paraguay’s gambling reforms aim to reshape its economy

Rajashree Seal November 29, 2024

SiGMA news

How Paraguay’s gambling reforms aim to reshape its economy

Paraguay is set to make changes to its gambling industry. Earlier this month, the government introduced a bill to amend its current gambling law (Law No. 1,016/1997). The proposed changes aim to open the market, moving away from a monopoly system and allowing private companies to participate freely.

The bill has already been partially approved by the Chamber of Deputies and now awaits review in the Senate. If passed, it will encourage more competition in the gambling sector, create new opportunities for businesses, and provide better choices for workers and consumers. According to the government, this will boost innovation, improve services, and create new opportunities for workers.

What’s the bill about?

The proposed legislation will replace the existing public tender model with a more open system, enabling private companies to enter the market directly. It also seeks to strengthen the National Gambling Commission (Conajzar), placing it under the National Directorate of Tax Revenue (DNIT). This change is expected to improve oversight, enhance regulation, and increase tax revenue from gambling operations.

According to Conajzar president Carlos Liseras, the reforms will create jobs, boost tax collection, and foster competition. He said, “It is a fundamental step to democratise the market and allow greater competitiveness, which will translate into benefits for both operators and the state.”

Economic growth and investment

The reforms come as Paraguay undergoes social and economic changes. Since the government came into office in August 2023, it has worked on modernising the country’s economy. Gambling is one of the industries that has grown due to technological developments, new types of games, and more users.

The government expects these changes to attract foreign investment, create jobs, and help the economy grow. A more competitive market will also give workers more options to choose their employers.

Deputy Billy Vaesken said the bill would create opportunities in the gambling sector and give consumers access to more options. He said the competition would allow companies to offer different types of gambling services, which would benefit workers and customers alike.

What’s next?

The bill has cleared the Chamber of Deputies and now awaits Senate approval. If passed, it will mark a new phase for Paraguay’s gambling industry. The government expects the reforms to bring in foreign investment, create jobs, and improve working conditions in the sector.

The changes are designed to align with the government’s broader economic goals of modernising industries and creating a competitive market. The reforms aim to make the gambling sector an important part of Paraguay’s economy in the coming years.

“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,” the bill states.

The government hopes these steps will create a fairer, well-regulated market that benefits operators, workers, and consumers while boosting the country’s economy.

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