Bolivia to Remove Gambling Tax Under Sweeping Fiscal Reform

The reform is positioned as part of a broader effort to revitalise one of South America’s weakest economies and attract long-term funding.

New Administration Brings Policy Modernisation

Elected in October 2025, Mr Paz ended 2 decades of governance by the Movimiento al Socialismo. The political transition has signalled a decisive shift in economic priorities, with the new leadership emphasising efficiency, transparency, and capital retention.

Central to this agenda is a comprehensive restructuring of domestic taxation. The government has framed fiscal optimisation as a foundational component of its growth strategy, aimed at modernising outdated mechanisms and removing levies that generate limited revenue while imposing high administrative costs.

One of the most notable elements of the reform package is the repeal of the national gambling tax, formally included in the recently approved Bill No. 1692. The legislation also proposes eliminating charges on banking transactions and business-related promotions, as these measures collectively account for less than 1% of the country’s total income.

According to Mr Paz, such levies undermine economic competitiveness without delivering meaningful fiscal benefits. Speaking to state employees in Cochabamba, he stressed that eliminating inefficient fees would reduce bureaucracy and help restore trust in Bolivia’s financial system.

The administration argues that removing low-yield levies is intended to:

• simplify compliance;
• lower enforcement costs;
• enhance the country’s appeal to international investors.

Broader Fiscal Restructuring

The repeal of gambling taxation is part of a wider recalibration of economic policy inherited from the previous government. Earlier this year, Mr Paz also overturned a wealth charge introduced under former president Luis Arce, which he claims contributed to the outflow of nearly US$7 billion in capital.

Finance Minister José Gabriel Espinoza has outlined a 10-year roadmap focused on:

• simplification of state revenue rules;
• incentives for export-oriented verticals;
• redirection of funds toward the weakened manufacturing sector.

The officials believe these changes will support job creation, stimulate investment, and foster innovation.

In parallel, lawmakers plan to reduce government spending by 30% in the 2026 budget and introduce new tax incentives for export-driven industries, positioning Bolivia as a more competitive regional economy.

Gambling Sector: Current Situation

Bolivia’s regulatory authority, the Autoridad de Fiscalización del Juego, has not yet issued a formal response to the proposal. Analysts predict the immediate fiscal effect to be minimal, reflecting the modest size of the legal gambling market.

At present, there is only one certified land-based casino in the country, located in Santa Cruz de la Sierra. Most iGaming activity remains unregulated or is conducted through offshore platforms, leaving a narrow effective taxable base.

Although Law No. 060 (2010) requires all wagering-related services to be state-authorised, Bolivia lacks a comprehensive oversight framework for online gaming. Enforcement efforts have primarily focused on confiscating illicit slot machines and targeting uncertified online bingo operations.

Symbolic Reform with Strategic Intent

Bolivia remains a tightly controlled jurisdiction with limited scale and high barriers to entry. While the authority has not indicated plans to liberalise casino regulation, the removal of the levy is widely seen as a symbolic yet meaningful step.

President Paz has framed the overhaul as part of a broader commitment to predictability and stability. By streamlining taxation and reducing bureaucratic friction, his administration aims to reposition Bolivia as an investment-ready economy capable of demonstrating sustained growth, even in traditionally restrictive sectors.