SBC News Voice of the Sports Betting Industry
Conajzar, the gambling authority of Paraguay, has received seven business applications to compete in its tender to operate a ‘national sports betting franchise’.
The tender was formally announced during the summer, as Conajzar promoted the competition via a nationwide advertising campaign, informing Paraguay’s public and business community of its intentions to launch a new sports betting franchise.
Yesterday, Conajzar lauded the success of the campaign, which had garnered the interest of seven businesses to compete in the tender.
Applications were submitted by the Jockey Club Paraguay, 7 Saltos SA, Consortium B Gaming, Consortium Empresa Fun, Hy Hao Yun SA and businessman Luis Carlos Alder Benítez.
The tender’s most notable applicant was Daruma Sam SA, the operating company of Aposta.LA betting shops, which operate in the capital district of Gran Asunción.
Suitors were informed that the winning bid will be awarded a five-year licence to operate a federally sanctioned sports betting franchise across Paraguay’s 17 provinces excluding Asunción.
Conajzar estimates that the winning party “will take control of a market worth $500m per year”.
Despite the tender securing interest, Conajzar has been criticised for launching its franchise competition.
Paraguayan gambling trade body APOJA has stated that the tender is unviable with the country’s existing legal framework for gambling.
The trade body had questioned why Conajzar could launch a national tender favouring an exclusive franchise contract, as Paraguay’s current legislative framework for sports betting remains incomplete.
Paraguay’s gambling laws are currently held under Law-1016, which was established in 1996 and defines sports betting as “activities in which an amount of money is risked on the results of a to-be-determined sporting event, with an uncertain outcome and unrelated to the parties involved”.
Though updated in 2015 to include legal interpretations for online gambling products, Paraguayan law remains limited in its oversight of sports betting activities.
APOJA has called on Conajzar to terminate the tender which favours a monopoly contract and focus on updating Paraguay’s gambling laws.
