The CONACOM, Paraguay’s competition regulatory authority, has initiated an investigation into the recent sports betting tender following claims of bias. Critics argue that the procurement was structured in a way that overly favoured the local contender.
Paraguay’s national sports betting franchise’s operation contract was put up for tender last year, with the bid process managed and monitored by Conajzar, the country’s official gambling regulator. Several participants, however, contended that the Conajzar disproportionately benefited the Paraguayan contestant by creating more advantageous conditions for them.
According to numerous competitors, DARUMA SAM, a domestic sports betting firm with retail outlets throughout Gran Asunción province, received preferential treatment from the Conajzar. SBCNews reports indicated that the CONACOM concurred with the notion that the regulatory body’s conditions were unbalanced, and highlighted their failure to communicate the tender fees and the minimum technical requirements to foreign competitors.
The CONACOM further criticized the Conajzar for its lack of justification for the alleged bias. They also criticized the regulator for not stipulating any prerequisites for due diligence or checking applicants’ criminal records within its participants.
Also, before the completion of Paraguay’s rules on sports betting, the APOJA, a Paraguayan gambling union, criticized Conajzar for putting forth a sports betting tender.
The Controversy Continues to Unfold
Notwithstanding the increased scrutiny, the Conajzar remains committed to granting the tender to DARUMA SAM, viewing it as the most competent provider for a national franchise within the country. The authority noted that its choice has been endorsed by the government, with a decree from President Mario Abdo Benítez’s office confirming this.
In 2022, DARUMA SAM, the recipient of the national sports betting franchise license, faced scrutiny from the Secretariat for the Prevention of Money Laundering. The anti-money laundering authority accused the operator of facilitating money laundering activities at their properties.
Earlier this year, foreign companies attempted to contest the Conajzar’s decision. Many were incensed by the unjust bidding procedure, dragging the regulator into a drawn-out legal confrontation.
Foreign firms alleged that DARUMA SAM failed to submit proper documents and thus should have been ineligible for the competition. A partnership of B-Gaming and Gambling SA additionally criticized the Conajzar for its reluctance to provide suitable justification for its actions.
