The Gaming Oversight Authority (AJ) of Bolivia presented its management report for 2025, a document that shows concrete progress in regulatory matters and sustained efforts against illegal gambling. At the same time, the government of President Rodrigo Paz announced an ambitious fiscal reform that includes the elimination of the gambling tax, a measure aimed at restoring investor confidence and stemming capital flight that, according to the Executive, has affected the Bolivian economy in recent years.
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Bolivia’s AJ executed more than 90% of its budget in 2025
One of the most notable indicators of the report is budget execution: the AJ managed to use more than 90% of the public resources allocated during 2025. This figure reflects consolidated operational capacity in the three central areas of the institution: regulation, oversight and control of lottery, gambling, raffle and business promotion activities.
Throughout the year, 1,226 business promotions were authorized, demonstrating growing interest from the private sector in operating within the current legal framework. This dynamism had a direct impact on consumers: companies and institutions that conducted raffles and promotions distributed prizes worth approximately $78.5 million dollars, considering the official exchange rate from bolivianos to dollars.
Fight against illegal gambling: 82 establishments intervened
On the front of controlling and suppressing illegal gambling, the AJ recorded significant results. During 2025, 82 illegal gambling establishments were intervened nationwide, operations that resulted in the seizure of 119 gaming devices and the subsequent destruction of 230 illegal gaming machines and equipment.
These actions are part of a sustained institutional strategy aimed at protecting both consumers and legitimate sector operators, eliminating the unfair competition generated by unregulated offerings.
ISO 9001:2015 Certification supports management quality
Bolivia’s AJ also renewed and maintains Quality Management System Certification under ISO 9001:2015 standard, endorsed through external audit conducted by the Colombian Institute of Technical Standards and Certification (ICONTEC). This distinction positions the institution as a reference for best administrative practices within the regulatory environment of Latin America.
Rodrigo Paz plans to eliminate gambling tax due to low fiscal performance
Parallel to the AJ’s results, the Bolivian government is working on a tax reform that includes the elimination of the gambling tax. President Rodrigo Paz publicly announced his intention to submit to Parliament a project aimed at eliminating this levy, along with other taxes such as those applied to financial transactions and business promotions.
The Executive’s central argument is that these taxes contribute less than 1% of the State’s total tax collection, a level that does not justify either the administrative cost of their management or the negative effect they generate on the business climate.
Capital flight and low foreign investment, the background to the reform
The Bolivian president calculated that in the last six or seven years, approximately $7 billion dollars left the country as a result of a tax environment perceived as adverse. This figure contrasts with the foreign direct investment recorded in Bolivia in 2025, which Paz placed at just $247 million dollars, a level that he himself described as insufficient to sustain the country’s economic growth.
The Minister of Economy, José Gabriel Espinoza, reinforced this diagnosis by pointing out that the questioned taxes have generated capital flight and discouraged international investment. Both Paz and Espinoza agreed that tax reform is a necessary condition to begin economic recovery.
Reduction of public spending and budget adjustment for 2026
The elimination of taxes is part of a broader package of measures. The Bolivian government also announced that it will seek to adjust the General State Budget for 2026 with the aim of reducing public spending by at least 30%. According to Espinoza, these actions together lay the groundwork for progressive economic recovery, with measures to be implemented in phases until March of this year.
President Paz emphasized that the return of capital that left the country would be decisive in generating employment and reactivating internal economic activity, in a context where Bolivia faces the challenge of rebuilding the confidence of national and international investors.
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