Paraguay
Te opening up of the online market has been slow and very little progress has been made when it comes to regulating the market. Te National Gaming Commission (CONAJZAR), has also been beset by a number of scandals over the last few years
Te CONAJZAR scandals include a failed tender for a large scale casino and hotel in Ciudad del Este and subsequent allegations of corruption involving city officials over accusations that they had unlawfully paved the way for the use of government land valued at around US$185m for the construction of the hotel and casino.
In February, the newly appointed President of CONAJZAR, José Ortiz, said that the regulator was aiming to update gaming laws. Law 1.016 / 97, which covers the gambling industry in the country, does not
include any new games, so new laws will be put forward in order to cover online gaming.
Ortiz said that the bill should be put forward in the first half of this year. A similar project was put forward two years ago in Congress, but did not gather enough momentum to receive approval.
Ortíz has been looking at the previous bill and at other gaming laws in other jurisdictions as a basis for the new law. Te new law also includes new ways to strengthen online control and monitoring and the strengthening
With only 5.6 per cent of the population having access to a land-line connection, the meager telephone network has resulted in rapid growth in mobile phone use. Paraguay has the lowest fixed-line telephone density in South America, with 5.6 lines per 100 residents, compared with 8.7 per 100 in Bolivia, 21.9 in Brazil, and 24.9 in Argentina.
Peru enjoys a remarkably high dial-up Internet penetration rate, but broadband Internet penetration is more than two- thirds below the average for Latin America and Caribbean countries. Barriers include widespread poverty, limited literacy, limited computer ownership and access, rugged topography and, perhaps most significant, a lack of meaningful competition which has made broadband Internet access in Peru one of the slowest and most expensive in the region.
New regulations are needed as sports betting via offshore sites stands at around US$450m per year.
Tere are currently around 24 sports betting companies that operate in the country in accordance with local gaming laws including Intralot, Betsson, Bwin, Inkabet and Total Bet. Of the 24, 17 offer both online and retail sports betting.
Peru
Te government has issued a small number of licences to operators, with those licensed operators reporting high returns. As a result, a number of operators are already present while a number of other sites are positioning themselves more strongly in the market
Unlicensed offshore operators still target the market meaning that the government continues to lose significant amounts of tax revenue. Te regulatory body, the Foreign Trade and Tourism Ministry (MINCETUR), has been looking at regulating the industry for some time in order to generate additional gaming revenue and ensure that online gaming sites meet with money laundering requirements, as
well as player protection measures, especially when it comes to the protection of minors.
While Peru was one of the first jurisdictions to officially allow for online gaming in the region and allows a number of online sites to offer their services locally, the government wants stricter rules in place to prevent offshore operators from offering their services in Peru.
Most of the bookmakers are foreign operators, with some only offering online sports betting as part of their product portfolio.
New rules covering online gaming have been in development for two years and will ‘probably’ be addressed by Congress this year. In October 2018, the General Directorate of Casino Games and Slot Machines (which in turn comes under the supervision of MINCETUR) explained that the legal team had completed the final draft of a new online gambling law. According to Manuel San Román,
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LATAM ONLINE Paraguay & Peru
of ties with municipalities for more control over the industry, as well as more oversight when it comes to the fees that local governments should receive from gaming.
For now the online gambling offer is extremely limited.
CasinoAmambay.com, which has been in operation since December 17, 2017, was the first licensed operator to offer online casino games.
Te site is operated by Maxxi Media, a company with headquarters in the Netherlands Antilles.
the head of the directorate, there are a number of international operators that are interested in operating in Peru once the market is regulated further.
Manuel San Román said that there will be no ceiling on the number of companies wishing to take part, while the board will initiate a crackdown on unlicensed operators.
Te bill puts in place criminal penalties for those found to be operating online games illegally. In addition Internet service providers that allow unauthorised platforms to operate will be fined.
Te initiative includes a series of other measures to combat illegal gambling such as the prohibition of any type of sponsorship and an advertisement ban on unlicensed betting companies. Although the exact details of the new act remain vague for now it is believed that online sports operators will have to pay a monthly tax of 12 per cent on net income.
New rules covering online gaming have been in development for two years and will ‘probably’ be addressed by Congress this year. In October 2018 the
General Directorate of Casino Games and Slot Machines (which in turn comes under the supervision of MINCETUR) explained that the legal team had
completed the final draft of a new online gambling law. NEWSWIRE / INTERACTIVE / MARKET DATA P41
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