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Paraguay – Fears that Paraguay sector could be State-controlled

By - 11 August 2014

Despite some recent positive developments in the casino industry of late, including the announcement of a major new opening in the next months and stricter laws when it comes to tackling illegal gaming, there is growing speculation that the Paraguay government is now seeking to place the industry in state hands.

Fears were sparked by Head of The Paraguayan Gaming Commission (CONAJZAR) Javier Balbuena after a meeting with President Horacio Cartes. After the meeting Mr Balbuena spoke of “changing the current model and giving the State major control over gaming income in order to increase profits and increase state investment in social spending.”

In response to these statements members of the local gaming industry have warned that the state function is not to “participate” in gambling at all. Rather interest groups have warned that the government’s role is simply to “create conditions for the private sector contribution to the state, through the implementation of fees and taxes,” They also argue that increasing state control could also jeopardise the industry which is now a major employer and could also have a negative effect on the tourist industry.

Illegal gaming is also widespread and local businessmen have warned that “greater state involvement” is not a guarantee of seriousness or formality.” On the contrary, more state control could, they say, would only lead to the increase of the already “insatiable greed of our politicians.”

While gaming has proliferated rapidly over recent years in Latin America, the local industry in Paraguay remains small scale. Although there have been a number of attempts of recent years to open up the market a number of bidding processes have been cancelled over claims of irregularities and the casino industry remains underdeveloped with little foreign investment in the industry.

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