Rodrigo Paz, Bolivia’s president elected in October 2025 and the Christian Democratic Party's leader, is consistently pushing for a large-scale transformation of the country’s fiscal system. The initiative reviews current mechanisms in various industries, including the abolition of the national gambling tax.
Plans of the New Government
Mr Paz ended the 20-year rule of Movimiento al Socialismo. This shift marked the beginning of far-reaching political and economic changes affecting the state’s administrative, financial, and social spheres.
The president’s supporters have committed to a comprehensive reform of the national fiscal framework, viewing it as a crucial tool for catalysing sustainable growth in Bolivia. One of the first approved steps was the decision to repeal the current levy on gambling. This conclusion is enshrined in Bill No. 1692.
It also belongs to a broader package of modifications aimed at:
- revising outdated domestic mechanisms;
- increasing the efficiency of low-income tax collection;
- restoring global investment reputation and business confidence.
The president believes the proposed measures will significantly reduce the administrative burden and lower public costs. In his opinion, ineffective fiscal tools that yield minimal returns hinder economic development and reduce the country’s attractiveness to sponsors. The elimination of such elements creates conditions for enhanced transparency and confidence in the Bolivian financial sustainability and growth.
Radical Systemic Changes
The revision of gambling taxation supports a broader restructuring of the previous administration’s program. The step follows the repeal of the wealth fee introduced by the predecessor, Luis Arce.
According to Mr Paz, the old format was so ineffective that it led to an outflow of nearly $7 billion from the state capital. José Gabriel Espinoza, the country’s Finance Minister, elaborated on the parameters of the ambitious 10-year taxation strategy that is going to be implemented.
According to him, modernising the outdated regulatory framework will:
- assist in creating additional jobs;
- minimise bureaucratic distortions in the system;
- redirect funds to the weakened manufacturing sector;
- significantly increase Bolivia’s appeal to foreign investors.
Additionally, the government has already presented a revised draft budget for 2026. The document calls for a 30% reduction in government spending and the introduction of incentives for the verticals oriented towards export. These measures are aimed at strengthening the state’s competitive position in both the regional and global economy.
Gambling Market: Current State
Autoridad de Fiscalización del Juego (AJ), the local gaming authority, has not yet commented on the president’s initiative. Industry experts estimate that tax breaks are unlikely to have a significant impact on budgetary indicators, given the segment’s limited size. Its contribution amounts to less than 1% of total levy revenues.
Currently, only one licensed casino operates in Bolivia, located in the country’s largest city, Santa Cruz de la Sierra. Most processes, particularly in the digital sector, occur in the shadow market and through offshore portals that do not intersect with the national fiscal system.
Law No. 060, passed back in 2010, features mandatory state authorisation for all forms of real-money entertainment. Nevertheless, a comprehensive regulatory framework for implementing these requirements has never been established. In particular, oversight mechanisms for the digital segment are lacking.
In practice, AJ’s responsibilities are limited to systematic inspections, the confiscation of illegal land-based equipment, and attempts to block unauthorised online bingo operators. Under the current circumstances, the expert community views the tax abolition more as a symbolic step reflecting a review of priorities than a measure with immediate pragmatic effect.
Economic Potential and Prospects
The new administration is taking the first steps toward liberalisation and strengthening investor confidence. Mr Paz’s initiative is characterised by promising levels of transparency and clarity.
The government apparatus plans to:
- optimise public costs;
- reduce bureaucratic procedures;
- increase productivity in all financial sectors.
According to the president, his team is building a highly predictable and stable economy that would be more appealing to potential sponsors. The country has every opportunity to ensure sustainable and straightforward operations, which are strongly valued worldwide.
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