Calls for reforms to limit gambling regulator’s powers in Paraguay

Fourteen members of the Chamber of Deputies are pushing for the government to end Conajzar’s power to issue licences.

Paraguay.- The government of Paraguay has been urged to amend gambling legislation to end the national regulator Conajzar‘s power to issue gambling licences. Fourteen deputies are calling on the government to amend legislation, arguing that the regulator exploited its powers to grant Daruma SAM a monopoly over the market.

The deputies criticised Conajzar for awarding exclusive licences for sports betting, pools and lottery to one single company for five years. Their proposal seeks to amend articles 8, 11, 13, 21, 22 and 23 of Paraguay’s gambling law.

The move comes after the Comisión Nacional de la Competencia (CONACOM) launched an investigation into a tender to run a national sports betting franchise across all 17 of Paraguay’s departments. Run at the end of last year, the process led to a legal challenge from disqualified bidders, who claimed that the rules imposed by Conajzar favoured Daruma SAM, the operator of the Aposta.LA retail betting brand in Gran Asunción.

Daruma SAM denies having conspired with Conajzar to win the tender. However, deputies argue that Paraguay’s Gambling Law does not allow Conajzar to award federal licence concessions. They also claim that its actions contradict the Paraguayan constitution, which prohibits the creation of monopolies.

Paraguay’s new president Santiago Peña has ordered major changes at Conajzar since he took office in August. He has appointed Carlos Augusto Liseras to replace María Galván del Puerto as the regulator’s president.