The gambling regulator in Paraguay, Conajzar, announced a 8 percent drop in revenue from the gambling industry in the first four months of the year. The company recorded gross revenues of $5.2 million, down from $5.6 million the previous year.
In comparison to Conajzar’s game revenue in the first four months of 2019, the last regular January-April trading cycle that the Paraguayan industry witnessed before the pandemic, the results show a $1 million decrease in revenue.
According to a study by local news outlet La Nacional, pre-pandemic monthly sales averaged $1.4 million, but that number has fallen dramatically since April 2020, with just $94 thousand produced the following month.
Sector on the mend
Furthermore, according to José Antonio Ortiz, the local regulator’s head, the industry is currently operating at 75 percent of normal levels of trade. However, the sector is on the mend, as COVID-19 continues to impose significant restrictions in Paraguay.
According to Law 1,016/97, 10 percent of Conajzar’s earnings shall go to the National Treasury, 30 percent to states, 30 percent to governances, and the remainder to the Directorate of Charity and Social Assistance (Diben).
Ortiz spoke earlier this month about a new resolution issued by the Supreme Court of Justice’s Criminal Chamber, which summons sportsbooks accused of unlawful activity to a preliminary hearing. He claims that the move would aid in the fight against illicit gambling, which has a negative effect on revenue sent to social organisations like Diben.
“Besides the complaints that we make [to the Public Ministry] that help close [illegal] shops, sites appear on the internet, where unauthorised bets are offered. That has repercussions: it hurts the concessionaire and its contribution to the Treasury,” he said.