SBC News Voice of the Sports Betting Industry
Paraguay’s tender to award a national sports betting franchise has come under disrepute as participants have rejected the concession’s result.
This week, Conajzar, the gambling authority of Paraguay, announced Daruma Sam as the winner of its competition to operate an exclusive sportsbook franchise across all provinces.
The decision was immediately challenged by participants, who accused Conajzar of having no intention to host a fair concession, in which it had purposely designed its competition to favour Daruma Sam.
Daruma Sam is the operating company of Aposta.LA betting shops, which conduct business in the capital district of Gran Asunción.
The consortium of B-Gaming Paraguay and Gambling SA has threatened to initiate a legal challenge against Conajzar on behalf of tender participants that “absolutely reject the regulator’s determination and judgement”.
One of seven businesses competing in the tender, B-Gaming and Gambling SA disclosed that their joint-bid had “disqualified on ambiguous grounds”, with Conajzar providing an “unsatisfactory response for its rejection”, as the Consortium had the financial capacity and experience to pitch for the tender.
Conajzar has denied the accusations, stating that the Consortium had failed to meet the tender’s compliance demands. In which it anticipated a challenge from failed suitors “to try to reverse the award to Daruma Sam.”
Prior to the launch of the competition, Paraguayan gambling trade body APOJA had stated that Conajzar’s tender was unviable with the country’s existing gambling framework which holds limited interpretation for sports betting activities.
The trade body questioned how Conajzar could launch a national tender favouring an exclusive franchise contract, as Paraguay’s current legislative framework for sports betting remains incomplete.
APOJA had called on the government to intervene and terminate the tender as Conajzar had taken upon itself to define Paraguay gambling law on sports betting favouring a monopoly franchise.
Conajzar stands by its decision to award the tender to Daruma Sam as the best operator, stating|: “Daruma complies with all the requirements set forth in the Bidding Terms and Conditions. The data presented are viable, both for the bidder and for the Paraguayan State.”
