SBC News President Peña endorses new bill to overhaul Paraguay's gambling laws

President Peña endorses new bill to overhaul Paraguay’s gambling laws

President Santiago Peña of Paraguay has endorsed a new bill to reform national gambling laws and revise the privileges of municipal gambling monopolies.

Submitted by President Peña and Minister of Economy Carlos Fernández Valdovinos, the bill is now before the National Congress for an expedited review.

The bill’s 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.”

Peña’s endorsement is part of his intervention in Paraguay’s stalled gambling reforms, following a Senate delay of the Law No. 1016/1997 review, which had been awaiting action by the Constitutional Affairs Committee.

Key proposals include transferring the National Gaming Commission (Conajzar) to the National Tax Revenue Directorate (DNIT) to boost efficiency and revenue.

In 2023, Conajzar faced political scrutiny for mishandling the tender of a federal sports betting franchise, awarded to Daruma SAM, operator of Aposta.LA betting shops in Gran Asunción. The tender was ultimately voided due to a lack of government oversight and a clear competition framework, leading to an investigation by CONACOM, Paraguay’s competition authority.

The reforms aim to replicate DNIT’s tax collection success by providing Conajzar with expanded resources, including 800 inspectors and improved legal and control functions.

Industry stakeholders are optimistic about rapid approval, given the government’s legislative majority.

Lorena Rojas, head of APOJA (Association of Gaming Operators), emphasised the anticipated benefits for combating illegal gambling through better oversight.

In 2023, APOJA secured ministerial support to file six articles amending Paraguay’s Gambling Law, specifically aiming to end monopolies on gambling activities. Ministers backed APOJA following the controversial Conajzar-managed sports betting tender.

The bill also seeks to open the gambling market by removing existing monopolies and allowing unlimited licences for sports betting and other games. Additionally, it proposes regulations for online gambling and betting to keep pace with technological advancements. Approved games would include casinos, lotteries, online casinos, sports betting, and more.

The bill is expected to pass quickly, as the Executive holds a majority in both chambers.

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