Paraguay Opens Gambling Market with New Regulatory Law

Paraguay has taken a major step toward reshaping its gambling industry with the passage and signing of Law No. 7.348/2025, which officially eliminates longstanding monopolies and welcomes private operators into the market. This legislative reform updates and expands the previous gambling framework, Law No. 1.016/1997, and marks a turning point for the country's gaming sector. Under the new structure, private entities will now be able to obtain licenses to operate both land-based casinos in Paraguay and online gambling platforms—an opportunity previously limited to public tenders.

President Santiago Peña and Óscar Orué, Director of the National Directorate of Tax Revenue (DNIT), highlighted the significance of these changes, especially in light of recent tax collection growth. According to government data, gambling-related tax revenues rose nearly 11% in the first quarter of 2025, with expectations of even more dramatic increases in the years ahead due to regulatory reforms and market liberalization.

Stronger Oversight Through Institutional Reform

The newly enacted law not only restructures how licenses are granted but also reorganizes the country’s main gambling regulator. The National Gaming Commission, or Conajzar, will now function under the umbrella of the DNIT. This move aims to enhance transparency, strengthen regulatory enforcement, and ensure more consistent fiscal oversight. A DNIT representative will chair the revamped commission, joined by members from local and national government institutions, including the Ministry of the Interior and the Directorate of Charity and Social Assistance.

Carlos Liseras, President of Conajzar, emphasized that the updated legal framework will provide “legal certainty” to investors while enhancing protections for vulnerable populations, particularly minors. He explained, “In terms of protecting national and foreign investment of those who are dedicated to the exploitation of games of chance authorised by the regulatory entity, this gives legal certainty to the aforementioned investors.”

Fighting Illegal Gambling and Promoting Fair Play

The reform package introduces a series of measures designed to clamp down on illegal operators. Conajzar and DNIT have been granted authority to seize unauthorized equipment and block access to illicit online gambling platforms. Penalties for operating outside the legal framework include prison sentences of up to five years. The use of technological tools for tracking and enforcement has been integrated into the law to bolster these efforts.

Gaming establishments must also meet strict compliance conditions, including maintaining a minimum distance of 200 meters from educational institutions and using gaming systems certified by accredited inspection entities. Operators must also demonstrate experience in the gambling industry, maintain clean legal records both domestically and internationally, and prove they possess adequate financial resources to support their operations.

Market Liberalization and Economic Potential

Until now, certain forms of gambling in Paraguay—such as betting pools and sports betting—were monopolized by a single operator. With the passage of Law No. 7.348/2025, this has changed. Moving forward, up to three companies will be licensed per betting category, opening space for new entrants and aligning Paraguay’s approach with other regional markets like Brazil and Peru.

The liberalization of the market is expected to increase competition, drive innovation, and improve service quality. According to Liseras, Paraguay collected PYG 175.8 billion (approximately $21.9 million) in gambling revenue in 2024 alone. With the new regulatory tools and market expansion, he predicts, “The estimate made is that this will double and could even far exceed these estimates.”

The law also requires licensed operators to separate accounts for gambling activities, a measure that supports improved fiscal control and transparency.

Regional Impact and Global Alignment

Experts have praised the reform as a model for modern regulatory policy in Latin America. “Paraguay’s move to end gambling monopolies aligns with global trends towards market liberalization,” said John Smith of Global Gambling Insights. Economist Dr. Maria Gonzalez also noted the potential to attract foreign investment, stating, “The liberalization of Paraguay’s gambling sector is a crucial step towards economic modernization.”

With Conajzar now operating under DNIT’s umbrella and tasked with managing upcoming bidding processes, the country aims to solidify its place as a competitive hub in the Latin American iGaming industry. International agreements already in place are expected to expand, further enhancing cross-border cooperation and industry standards.

As the executive branch prepares to implement the law and launch the first licensing rounds, Paraguay is setting the stage for sustained growth and greater accountability in its gaming landscape.

Source:

Paraguay Enacts Comprehensive Gambling Law Reforms to End Monopolies, linkedin.com, December 31, 2024