Paraguay's Transferring Conajzar to DNIT Amidst Criticism from Operators

Paraguay’s Minister of Economy and Finance, Carlos Fernández Valdovinos, announced a new bill to transfer the National Gambling Commission (Conajzar) under the supervision of the National Directorate of Tax Revenue (DNIT). The goal is to enhance oversight of the gambling sector and increase state revenue by improving information-sharing mechanisms related to gambling activities.

While this proposal aims to improve control and revenue collection, business groups in the gambling sector expressed disappointment over their exclusion from discussions surrounding the legislative changes. The private sector had initially supported the idea of giving Conajzar more autonomy, but now the commission will be subordinate to another entity, which concerns operators.

Concerns from the Gambling Industry

Lorena Rojas, president of the Paraguayan Association of Gambling Operators (APOJA), voiced frustration at not being consulted despite their industry experience. Rojas emphasized that the private sector has been advocating for a new law to give Conajzar independence, but the decision to subordinate it to DNIT could hinder progress. She also noted the necessity of reforming the existing 1997 gambling law, which will now focus on desmonopolizing gambling licenses, including for the lottery and sports betting, and regulating online gambling.

Rojas also highlighted Conajzar’s current limitations, such as a lack of personnel, infrastructure, and resources to effectively control gambling activities in the country, making it difficult to combat illegal gambling. She stressed the urgent need for a regulatory body with decision-making power to address these challenges.

Lack of Stability in Investment

The private sector's uncertainty about investment prospects is another concern. Rojas criticized Conajzar’s lack of power to support the development of the gambling industry, pointing out that while its leadership might have good intentions, they are unable to act effectively due to insufficient resources.

Furthermore, Rojas pointed out the impending deadline for the new lottery concession, warning that if the law is not passed soon, the sector will face another exclusive concession, delaying the desmonopolization efforts.

Despite these concerns, APOJA hopes that the bill will enter Parliament this week. With the government's majority in both chambers, there is optimism that the new legislation could be passed by the end of November.