Paraguay Approves New Legal Regime Eliminating Gambling Monopoly
On Dec. 17, Paraguay’s Chamber of Deputies approved a bill amending the county’s gambling regulations, eliminating the monopoly.
With some amendments, the bill to amend Paraguay’s gambling legislation (Law No 1,016/1997) was passed during a second extraordinary session of the Chamber of Deputies.
Alongside the abolition of the monopoly, the bill also seeks to strengthen the powers of the regulating National Commission of Gambling (Conajzar) by placing it under the National Tax Revenue Directorate (DNIT), enhancing its ability to increase tax revenues.
Now the bill has passed through the Chamber of Deputies, the next step will be for it to go to the Executive.
Peru’s 1 percent Consumption Tax on Gambling Approved
Peru’s government has approved a new 1 percent consumption tax on gambling, with the taxes due to come into force in Jan. 2025.
The tax was removed ahead of Law No 31557, Peru’s gambling framework, coming into force, but it was reintroduced on Sep. 13 via Legislative Decree 1644.
The excise tax will apply to all online gambling. Gonzalo Perez, CEO of Peruvian operator Apuesta Total, feels that with all platforms needing to be certified by a laboratory as part of the licensing process, it will be a while before the taxes can actually be paid.
“Let’s remember that we are one of the few industries, or perhaps the only one, that operates with a platform certified by a state-approved laboratory and that operating without certification and homologation not only carries fines but can also mean the withdrawal of authorization,” Perez said on Linkedin.
Brazil Betting CPI Rapporteur Refutes Extortion Claims
Sen. Soraya Thronicke, the rapporteur for Brazil’s betting Parliamentary Inquiry Commission (CPI), has sought assistance from the Federal Police (FP) to probe allegations of extortion within the commission.
Veja reported that Sen. Ciro Nogueira informed Congress President Rodrigo Pacheco about a Brasília-based lobbyist, Silvio de Assis, who has been accused of attempting to extort industry members, requesting BRL40 million ($6.5 million) from the owner of a betting site who was warned he could be called to testify in front of the CPI.
The businessman declined to make the payment and was later summoned before the CPI. Although the report did not directly implicate Thronicke, she is allegedly known to have a “close relationship” with the lobbyist.
After CPI Vice President Alessandro Vieira called for the Attorney General’s Office to launch an investigation, Thronicke hit back at the claims, saying: “In view of the serious allegations, I sought out the director general of the federal police, placing myself entirely at his disposal.”
Brazil Court of Auditors Demands Ban on Betting Using Social Welfare
Brazil’s Federal Court of Auditors has called for a ban on using social welfare funds for betting after an appeal by the Attorney General’s Office (AGU).
After a two-day November hearing, Brazil’s Federal Supreme Court (STF) upheld Minister Luis Fux’s emergency measure to immediately ban the use of social welfare funds for betting.
However, the AGU lodged an appeal last week, stating the government didn’t yet have the resources to effectively carry out the ban due to difficulties in differentiating funds from social welfare money from other income sources used to bet.
Now, Court of Auditors Minister Jhonathan de Jesus has urged the ministries of finance, sports, and development, along with federal bank Caixa Econômica Federal, to reinstate the ban immediately.
Illegal Betting May Push Licensees Out of Brazil, ANJL Chief Warns
Plínio Lemos Jorge, president of the National Association of Games and Lotteries (ANJL), fears legal operators may leave Brazil unless the illegal market is brought under control.
The legal market launch on Jan. 1, 2025 is now less than two weeks away, and last week Secretariat of Prizes and Bets (SPA) leader Regis Dudena revealed 71 operators have had their licenses approved.
However, the threat of illegal gambling still lingers, with the ANJL revealing previously that over 2,000 illegal sites are still active in Brazil.
Lemos Jorge fears this could drive legal operators out of Brazil, telling UOL Apostas: “This risk does exist if the illegal market is not effectively combatted. If investors assess that the market scenario is not favorable to the expected returns, those who are already here may certainly leave the country.”
