Paraguay's government, under President Santiago Peña, is pushing for a swift legislative vote to dissolve the Comisión Nacional de Juegos de Azar (CONAJZAR) and establish a new gambling authority, the Dirección Nacional de Juegos de Azar (DINAJZAR). The proposed changes aim to overhaul regulatory oversight and reshape the country's gambling concession system.
Proposed Regulatory Overhaul
Plans to replace CONAJZAR with DINAJZAR have been under discussion since October, with the new agency described as an autonomous regulator reporting to the Ministry of Finance. The government intends for DINAJZAR to assume full legal oversight of Paraguay's gambling sector, including the management of state-owned contracts and the licensing system.
The reform package also proposes a cap of three concessions each for quiniela and sports betting operations. Additionally, land-based casino concessions would include the right to acquire an online casino licence, introducing a new link between physical and digital gambling operations.
Background: Criticism of CONAJZAR
CONAJZAR's management has faced criticism for years, particularly over its handling of sports betting concessions. In 2022, Daruma SAM, operator of the Apostala brand, retained exclusive sports betting rights through a contested tender process. The award was challenged by rival bidders and scrutinised by Paraguay's competition authority, CONACOM, which identified barriers to competition such as the exclusion of international bidders and restrictive financial requirements.
Leadership instability has further complicated matters, with several changes at the head of CONAJZAR in recent years. These challenges have prompted calls for a comprehensive institutional reset to improve market fairness and regulatory effectiveness.
Implications for the Industry
The proposed shift to DINAJZAR and a revised concession model could significantly impact operators, affiliates, and suppliers. Industry stakeholders have expressed conditional support, with trade body APOJA's president advocating for open market access based on demand and quality rather than a fixed operator ceiling. There is also debate over the connection between land-based and online licences, as well as concerns that lengthy digital concessions could stifle competition and innovation.
The reforms present an opportunity for Paraguay to move away from exclusive models and potentially allow broader participation in the gambling sector. However, the ultimate impact will depend on how entry conditions and concession limits are defined in the final legislation.
Key takeaways
- Paraguay's government seeks to replace CONAJZAR with the new DINAJZAR regulator.
- Reforms aim to restructure the concession system and increase regulatory autonomy.
- Industry groups want more open market access and reconsideration of licence links.
- The final shape of the market will depend on legislative decisions regarding operator limits and entry criteria.