Paraguay
The gambling board is underfunded and understaffed and successive heads have been asking for more independence and authority.
One of the largest casino openings for many years came to an end in Paraguay after Te National Gambling Commission of Paraguay (CONAJZAR) cancelled the public bidding for a casino in Ciudad del Este.
Plans for the large scale casino resort, total investment of which could would have stood at as much as US$70m according to some estimates, had to be abandoned over claims that lawmakers had unlawfully paved the way for the use of government land. Te scandal even went as high as the office of the President and soon enveloped a number of other high rankling politicians as well including the city mayor and the head of the gaming board. Te charges, which were later dismissed, were put forward by the Union for Paraguay’s National Ports Authority (ANNP) which argued that the defendants had unlawfully paved the way for the use of the institution’s land for the construction of a hotel and casino.
Allegations of corruption have also surrounded the tender for sports betting after the market was finally opened up for expansion. In February 2018, the Comptroller General of the Republic of Paraguay (CGR) recommended that the bidding process for sports betting be
Allegations of corruption have surrounded sports betting
after the market was finally opened up for expansion. In February 2018, the
Comptroller General of the Republic of Paraguay
recommended the bidding process be declared void.
declared void. Te CGR asked that the licence awarded to Daruma Sam (Apostala) be revoked. All the same Daruma Sam was granted the exclusive right to offer sports betting ahead of the last FIFA World Cup for the next five years. Under the terms of the contract Daruma Sam has the obligation to open as many as 200 sports betting shops throughout Paraguay.
Tree complaints were put forward alleging that the bidding process had been prepared with the intention of favouring one of the participants
over the others. Accusations alleged that the tender had been stacked in favour of Daruma Sam SA which has ties to local government officials as well as members of the gaming board itself, according to local news sources. Te CGR had also argued that the tender was monopolistic in design and was therefore incompatible with the constitution.
OUTLOOK
Casino tenders have failed for years even when the tourism industry was doing well amidst calls of foul play. Te gambling board itself is underfunded and understaffed and successive heads of the Gaming Board have been asking for more independence and authority. Meanwhile, yet another corruption scandal is breaking over the granting of a slot machine licence to a private company. Senators have argued that Conajzar’s contract with local gaming company iCrop to permit slot machines outside of casinos and slot parlours was a way of bypassing local gambling laws and legalising them. At the request of Minister Óscar Llamosas, the Treasury has begun an investigation into the running of slot machines outside of casinos. Conajzar hired iCrop directly and granted it the power to register, regulate and collect the fees.
WIRE / PULSE / INSIGHT / REPORTS P37
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