What are the most relevant points of the new regulation that was enacted by the Executive Power this week.
Paraguay.- The gaming industry in Paraguay continues to be revolutionized after the enactment of Law 7.438, which modifies several articles of Law 1016/97 that establishes the Legal Regime for the Exploitation of Games of Chance.
Some of the key features of the new regulation include: the elimination of the monopoly on sports betting and lotteries, allowing up to three authorized operators; and the transfer of the National Gambling Commission (Conajzar), which from now on will depend directly on the National Directorate of Tax Revenues (DNIT), leading to greater controls and aiming to increase revenue collection. It was also announced that, as part of the new Conajzar, a specialized department will be created to fight against gambling addiction.
One of the most relevant and most requested points by the gaming operators in Paraguay is the liberalization of the gambling market. It proposes to eliminate existing monopolies, allowing greater competition and diversity of providers, at the national, departmental, and municipal levels.
Under the new regulation, for lotteries and sports betting there will be up to three licenses per type of game. Until now, there was only one authorized license per mode.
“The law establishes that it must be by public tender the call for those who want to develop this activity,” explained Carlos Liseras, president of Conajzar in communication with 780AM, and added: “The last days of January or the first days of February, we will be calling for the tender, in the lottery mode, because the license of the firm that is currently exploiting this mode of game expires in November this year.” In that sense, he said they will be publishing the terms and conditions to be able to award the best three offers they receive.
This regulation is expected to promote competition and imply a significant change in the economy. Congressman Billy Vaesken, who had initially pushed the initiative, had stated in the chamber when presenting the project: “This will mean that more people from abroad come and invest in Paraguay, this will improve the working conditions of the lottery brokers and will generate more job sources, there will be more opportunities within the free market, it will foster competition and it is indeed a real change for the Paraguayan economy.”
See also: For Conacom, the changes to the gaming law in Paraguay propose a more competitive regime
The integration of Conajzar into the National Directorate of Tax Revenues (DNIT) will allow greater capacity to regulate and sanction irregularities in the betting sector.
Conajzar will create a specialized unit that will work together with the DNIT to control and remove illegal slot machines. Liseras also advanced that the seized machines will be directly destroyed, without the need for local mayoralties' intervention, which will speed up the procedures and ensure greater effectiveness in combating these practices.
The official also referred to the administrative and operational capacity of Conajzar before the integration: “The institution enjoys good administrative and financial health, however, we did not have the operability to directly confront the clandestine exploitation of gambling, because we do not have enough staff or logistics.” He assured that the DNIT has the necessary powers to address the issue.
The new law also promises an increase in revenue collection. “This will significantly increase the collection of fees, taxes, and duties,” the official said in communication with various media, anticipating that the elimination of clandestine exploitation will benefit public finances.
Furthermore, Liseras pointed out the lack of previous support from some municipal mayors: “Few are the mayors who helped us combat the clandestine exploitation of gambling” and added that with the new legislation, Conajzar will no longer need that support, being able to seize and destroy slot machines and other items used in illegal exploitation.
