The Paraguayan government has been urged to amend gambling legislation to limit or end Conajzar’s powers to issue gambling licenses.
Fourteen deputies called on the government to change the legislation, arguing that the regulator exploited its powers to grant Daruma SAM a monopoly over the market.
Deputies criticized Conajzar for granting exclusive sports betting, billiards and lottery licenses to a single company for five years.
Their proposal aims to amend articles 8, 11, 13, 21, 22 and 23 of Paraguay’s gambling law.
The move came after the Comisión Nacional de la Competencia (CONACOM) launched an investigation into a bid to manage a national sports betting franchise across all 17 departments of Paraguay.
Executed at the end of last year, the process generated a legal challenge from disqualified bidders.
Request to restrict Conajzar’s powers
Politicians alleged that the rules imposed by Conajzar favored Daruma SAM, operator of the betting brand in Gran Assunção.
On the other hand, Daruma SAM denies having conspired with Conajzar to win the bid.
However, deputies argue that Paraguay’s Gaming Law does not allow Conajzar to grant federal licenses.
Therefore, they also claim that their actions contradict the Paraguayan constitution, which prohibits the creation of monopolies.
Paraguayan President Santiago Peña has made major changes in Conajzar since taking office in August.
He appointed Carlos Augusto Liseras to replace María Galván del Puerto as president of the regulatory body.