Supplier News
Paraguay – Only one bid for casino license in Paraguay’s capital
By Phil - 12 October 2015
The Paraguayan Gaming Commission (CONAJZAR) has only received one bid during its latest tender process.
The offer was made to run a casino in capital Asunción as part of the bid to operate a second casino in the city according to the head of CONAJZAR Javier Balbuena. The official estimated that in about 15 days, it would decide whether or not the license should be awarded.
He said nine companies in all purchased the bidding terms and conditions, but when the opening of the bids was held last Friday (October 2) the only bid submitted was that by company Gloria Hotelería S.A which already operates a casino in the Hotel Guarani.
“We are now in the process of evaluation of the documentation submitted. The ideal is that the largest number of bidders are always presented,” Mr. Balbuena said before pointing out that the lack of offers was due to the rigour and high standards demanded as part of the new bidding terms. “This is a different competition. We are providing a license, which should provide reassure to customers,” he said.
Mr. Balbuena went onto say that the commission is now in the process of evaluating the documentation and noted that recent tenders have also only attracted a small number of bids including the tender processes for the right to run both telebingo and quinela.
Land-based casinos have been permitted in Paraguay since 1997 but the casino industry remains underdeveloped with little foreign investment in the industry and illegal gaming has remained rampant. In June this year CONAJZAR announced plans to discuss the bidding process for a number of casinos in Paraguay and two in the capital. For the casinos in Asunción investors will need to guarantee infrastructure investment of approximately US$10m amongst other requirements. Operators will have three years to have infrastructure and other amenities in place and will be granted a further extension of six months to complete the infrastructure for the casino. Licenses will be valid for ten years. The winning operator will pay a monthly fee of around US$80m plus 12 per cent of revenues less money awarded back in prizes.
The tender process for a number of new casinos has been fraught with difficulties and delays for many years, with three tender processes being abandoned. In 2009 and again in 2010 and 2011 CONAJZAR was forced to halt the bidding process over accusations of irregularities and other issues mostly revolving around the fact that bidders were not meeting the minimum requirements set out to by the gaming commission.
