President Santiago Peña (pictured above) of Paraguay has taken a significant step to modernise the nation’s gambling industry by endorsing a comprehensive reform bill. The legislation, co-submitted with Minister of Economy Carlos Fernández Valdovinos, seeks to update Paraguay’s outdated gambling laws and address systemic inefficiencies.
Overview of Paraguay’s proposed law
Paraguay’s gambling sector has operated under Law No. 1016/1997 for decades. While this framework initially provided structure, it has struggled to keep up with technological advances and market demands. Efforts to reform the law have faced delays, including Senate holdups in reviewing necessary updates. A lack of clear competition frameworks and allegations of mismanagement have also plagued the sector.
The proposed bill aims to overhaul the existing legal framework to make it more transparent, efficient, and adaptable to emerging trends. One major change involves moving the National Gaming Commission (Conajzar) under the National Tax Revenue Directorate (DNIT).
The new bill text states: “I address Your Honourability, and through you, the Honourable National Congress, by virtue of the Constitution of the Republic of Paraguay, to urgently submit for study and consideration the bill that modifies and extends Law No. 1016/1997, which establishes the legal framework for the exploitation of games of chance and gambling.”
Illegal gambling has long undermined legitimate operators. By enhancing oversight and removing monopolies, the reforms aim to level the playing field. The Association of Gaming Operators (APOJA) has been instrumental in advocating for these changes, particularly by pushing for anti-monopoly measures. By allowing unlimited licences, the government aims to attract investments and increase consumer choice.
The bill proposes dismantling municipal monopolies, opening the market to multiple operators, and fostering healthy competition. With Conajzar integrated into DNIT, the government anticipates higher efficiency in revenue collection, directly benefiting public funds.
Government’s support
The Peña administration’s strong backing ensures the reforms have a clear path to implementation. Stakeholders, including APOJA, have expressed enthusiasm for the potential benefits of the reform. Paraguay’s reforms reflect global shifts, as countries increasingly focus on integrating technology into regulatory frameworks. Thanks to the Executive’s legislative majority, the bill is expected to pass swiftly through Congress.
The reform is expected to boost the economy by attracting investments and increasing tax revenues. If successful, Paraguay could position itself as a regional leader in modern, regulated gambling.
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