Casino de Asuncion , Paraguay
rent monopoly in Law No . 1016 / 1997 . This would have further strengthened the position of the regulator in Conaizar ( National Commission of Gambling ).
The bill was partially approved in the lower house of the legislative branch in the Chamber of Deputies . The bill seeks to end the current monopoly and open up a truly competitive marketplace with private operators . It would end the current process that allows access through the market solely through a tender process .
As part of the reform , it would have put Conaizar under the National Tax Revenue Directorate ( DNIT ). Should the bill be finalized , it will then be up to the director of Conaizar to implement the new strategy , and provide the development , oversight , and expansion of the competitive market .
As has been seen in other Latin America markets , opening up a competitive market will likely attract companies from around the globe . It happened with Brazil in that multiple companies came to the table in an effort to expand their brand and their base of revenue into these new markets . By ending the monopoly , Paraguay can and will attract new players to the market and achieve their goal of expanding and enhancing their current tax base .
In Peru , some of the casinos have the habit of naming their casinos after U . S . casinos and destinations
Double Taxation without Representation
Peru was viewed to be one of the best emerging markets for online gaming , with some estimates showing that it could be one of the top three markets in South America . In early 2024 , Mincetur , the Ministry of Foreign Trade and Tourism , started taking applications for online operators .
Nearly 150 applications were received by the end of the first quarter of 2024 that included attracting American operator Rush Street Interactive to the market .
The current market calls for a 12 percent tax on gross gaming revenue under a reasonable regulatory structure . However , challenges arose in the market when a 1 percent consumption tax was raised that would have been placed on every bet . While operators throughout international markets have faced dual capacity tax or double taxation methods as they recoup profits back into their home country , a double tax in the same market normally becomes a deal killer .
In the case of Peru , it would be a deal killer for the market on operators that have built their models on a reasonable tax of the aforementioned 12 percent .
The 1 percent tax was introduced in September 2024 , and has been playing out over the end of 2024 to determine how much the effective tax rate would be on the potentially expansive online market in Peru .
This was also under the premise that the market would launch , but now brings the questions of not only calculating the additional tax that is not merely on the GGR but the amount wagered , and then understanding if companies still want to do business within the market .
Prior to this , Peru ’ s regulatory framework was praised as one of the stronger models to follow , with some even asking Brazil to follow some of the same principles . However , as we have seen with other markets around the world , tax structure can be a deal killer for operators as well as a market .
For the existing illegal operators , this becomes the opportunity to continue their activities that offer no consumer protections , tax revenue , or compliance measures . For those trying to seek entry in the market , it could be a deal killer because of their desire to compete effectively in the market . Countries from Japan to the U . S . to Europe have all screwed up the tax situation over the years , and have either
16 Global Gaming Business JANUARY 2025