CONAJZAR Seeks to Exert its Authority SOUTH AMERICA
Presidential veto forces rethink of Paraguay’s new slots machine bill, with the National Gaming Commission now due to licence slots, not municipalities
CONAJZAR not Municipal Governments to grant slot machine licences in Paraguay
PARAGUAY LEGISLATION
BRAZIL – Both the state lotteries of the state of Rio de Janeiro and the state of Piauí are taking action in the Supreme Court (STF) to suspend the privatisation of Lotex the instant lottery division arm of the lottery. Both the lotteries of Rio and Piauí challenge the monopoly of the federal government to establish laws and define the operation of lottery services when it comes to instants. During a public hearing concerning the Lotex licensing process, state lottery representatives "alerted" potential investors over the lawsuit in court. The Supreme Federal Court is the court of last resort of Brazil, and its rulings cannot be appealed. According to Gilberto Occhi President of the largest state owned bank and lottery operator – the Caixa Econômica Federal (CAIXA) – the instant lottery division arm of the lottery will be sold off by the end of this year. Lotex, which is currently owned by the biggest public bank in Latin America, the Caixa Econômica Federal (CAIXA) will be sold off to a private operator and the bank will no longer take part in the business. It is estimated that the government could reap as much as US$320m from the sale.
BRAZIL – The President of Brazil's Chamber of Deputies Rodrigo Maia has assured his political allies that new gaming legislation will be put forward for a vote in November. The issue is gaining traction following the formation of a parliamentary front in favour of new laws made up of 262 deputies.
Representative for the front, Deputy Nelson Marquezelli affirmed that once the project is approved then the construction of casinos could begin as early as next year. Speaking to local daily Veja, Marquezelli said: “Hotel chains in Guarujá, Campinas and São José do Rio Preto have already expressed an interest."
Maia’s assurances come after the formation of the Front for the Parliament Approval of the Regulatory Framework for Gaming in Brazil: a group that seeks to promote Bill 442/1991, which would legalise casinos in order to boost the tourism industry as well as other types of gaming.
Deputy Maia has been a long time supporter of large-scale casinos as part of entertainment complexes and resorts. Speaking at the state meeting of his party in July 2016, the right leaning Democrats Party (Democratas, DEM) Rodrigo Maia said: “I am in favour of gaming as being part of the chain of entertainment, in favour of casinos and resorts as investment in the network of events and also gaming. This path will bring billions and billions to Brazil. Today, Brazil has eight thousand illegal machines and nobody does anything about it. Either you make progress towards something serious, or you end up with what you have already - money laundering every day," he said.
P14 NEWSWIRE / INTERACTIVE /
247.COM
Te Chamber of Senators of Paraguay has accepted the partial veto of three articles of a new slot machine bill currently up for debate. Te presidential objection is based on giving Paraguay’s National Gaming Commission (CONAJZAR) more control over the rise in number of illegal slot machines rather than leaving slot machine licences in the hands of the municipal governments.
Senators accepted the presidential veto of Articles 4, 6 and 8 of the Constitution: a legal initiative that establishes measures designed to safeguard the right of minors. Te Executive argued that the articles would in fact have shifted licensing authority to the municipal governments and ignored laws which established that CONAJZAR was the proper licensing body.
In addition, the veto also pointed out that the priority of the legislative right now should be to strengthen CONAJZAR’s control over gaming by
Puerto Rico
Hurricane Maria has devastated Te Camarero Race Track (Hipodromo Camarero) the only horse racing track in Puerto Rico. It is believed that the track will not be able to resume its activities for at least six months.
Te hurricane ripped the roofs off the riding stables and there is no drinking water or food. Fortunately there were no human losses and no horses were killed during the hurricane which landfall in Puerto Rico at 11.15am last on September 20. Around 850 purebreds are usually stabled at the track.
Te material losses are estimated to add up to around US$20m. However, according to Puerto Rican Racing Commissioner Jose A. Maymo this amount could be much higher as the grandstand and the clubhouse were destroyed as was the surrounding area to the track. Te Hipódromo Camarero management are now waiting for the insurance company to authorise work so that races at the track can begin as soon as possible.
granting the body with a higher budget. With less than 15 people the body is chronically under staffed and its budget is inadequate for state supervision of the gaming industry. Last month, Javier Balbuena, head of the National Gaming Commission, said that slot machines were a “plague” on the whole country. Many slots are present in small businesses and bars in several cities and often near educational institutions as well.
However, Balbuena said that the board was becoming increasingly active when it came to its crackdown on illegal slots (see below). “What we are doing is regulating gaming and, therefore, we issued a resolution in which we resolved that the municipalities will have a system of monitoring and digital control. Tis will help as these machines can no longer be on the streets because they will require an Internet connection. Several communes have already adopted this ordinance, he said adding that the board has destroyed hundreds of illegal slots.
Paraguay’s struggling to cope with illegal gaming
Paraguay
Javier Balbuena the Head of Paraguay’s Gaming Board CONAJZAR (pictured in the story above) has said that the board is struggling to cope with the number of illegal gambling halls. “We close the halls but the next day they open somewhere else,” he said. “Our physical capacity does not allow us to cover every place in the country. We have closed more than 20 illegal gaming rooms, it is a titanic struggle.”
Mr. Balbuena also referred to the alleged match fixing case involving goalkeeper from Sportivo Luqueño, Tobias Vargas. Vargas allegedly bet all of his salary against his own team, in a match between his club and Cerro Porteño. Te player supposedly won G50m after his team lost 3: 2.
"Tere are players who earn a low salary and with a bet they could triple what they earn in a
month," said Mr. Balbuena. However, he did say that there were still doubts over the Vargas case especially as if he did make the withdrawal he would have had to have made it in person and shown identification. In addition all withdrawals above US$10,000 are recorded and reported to the Secretariat of Prevention of Money Laundering.
However, Mr. Balbuena said that there was a distinct lack control over sports betting in Latin America and that match fixing existed. A number of meetings had been held, he said, with Te Paraguayan Football Association (APF) in order to regulate the industry more closely and prevent match fixing. Te board is understaffed and has been pushing for reform.
In February 2016 Balbuena announced that the board would increase its efforts to lobby for a bill that would make it an entirely autonomous body. Te aim of the new bill is to give CONAJZAR its own legal status and its own budget.
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