Conajzar to face probe on Paraguay sports betting tender

CONACOM – the competitions authority of Paraguay – has launched a probe into the tender competition to operate a federal sports betting franchise. 

Launched in September 2022, the blighted competition was run by Conajzar, the National Gambling Authority of Paraguay, for the exclusive rights to operate a national sports betting franchise.

The tender was lambasted by participating suitors who stated that its terms had favoured the bid of domestic incumbent Daruma Sam as Paraguay’s sole sports betting concession which currently operates Aposta.LA betting shops in the Capital province of Gran Asunción.   

Of significance, Paraguayan gambling trade body APOJA had submitted a complaint about why Conajzar could launch a tender as Paraguay had yet to finalise its laws on how a federal sports betting regime should operate.

Last week an intervention by CONACOM cited that “conditions set by Conajzar did not favour competition within the gambling sector”.

CONACOM agreed with complaints that suitors had not been informed of competition costs and minimum technical requirements to bid for the exclusive tender.

The competition authority further remarked that Conajzar had not provided a significant explanation for “the exclusion of international bidders and the consideration of their experience in operating consortiums.”

The review further criticised Conajzar for providing no requirements on due diligence for participants of the tender and whether they had criminal records.

Last year, Daruma Sam’s management of Aposta.LA came under investigation by the Secretariat for the Prevention of Money Laundering. The company was accused of allowing betting shops to serve as a ‘money laundrette’ ’for disgraced Paraguayan businessman Marco Trovato. 

Conajzar stands by awarding the tender to Daruma Sam, who were branded as the best capable steward to operate a national franchise in Paraguay. Furthermore, Conajzar cites that its decision had been rectified by a decree signed by the office of President Mario Abdo Benítez.