Paraguay Overhauls Gambling Laws to End Monopoly and Spur Growth

In a decisive move aimed at revitalizing its gambling industry, Paraguay has introduced significant legal reforms through the enactment of Law No. 7348/2025, signaling the end of a longstanding monopoly that has constrained the sector’s development. This legislation paves the way for private enterprises to participate under a newly established regulatory framework, offering a fresh chapter for one of South America’s most overlooked gaming markets.

Until now, games of chance were granted solely through public tenders, a system that limited competition and growth. The new legal structure shifts this model, introducing a more competitive bidding process that enables private operators to apply for licenses under clearly defined criteria.

At the heart of this reform is the formation of Conajzar, Paraguay’s new National Gaming Commission, which will operate as a decentralized entity under the National Directorate of Tax Revenue (DNIT). This body has been tasked with implementing and supervising the new legal landscape.

Conajzar will play a pivotal role in managing the industry by authorizing new gambling formats, overseeing licensing procedures, coordinating tenders, and enforcing regulations. Importantly, it will also be responsible for issuing penalties to operators who fail to comply with the rules, thereby establishing a more disciplined and transparent operational environment.

The objectives of Law No. 7348/2025 stretch beyond simply dismantling the monopoly, according to the analysis published by Vivo Gaming. Authorities hope to modernize the sector by strengthening regulatory mechanisms and ensuring better compliance, particularly around taxation.

In 2024, Paraguay reported PYG175.8 billion (approximately $21.9 million) in state revenues from gambling. Officials anticipate that this figure could potentially double under the new regime, citing improved enforcement and more transparent business practices as key contributing factors.

Given Paraguay’s relatively low tax rates and an expanding tourism industry, the government is optimistic about attracting global operators eager to enter emerging South American markets.

To maintain integrity and operational standards, the new law imposes stringent requirements on companies seeking a license. Applicants must:

• Prove a solid track record in the gambling sector
• Demonstrate sufficient financial strength
• Be free of unresolved legal disputes, both domestically and internationally

In addition, all electronic gaming equipment must receive certification from organizations accredited by the National Accreditation Body. Furthermore, gambling establishments are now prohibited from operating within 200 meters of educational institutions, a measure aimed at safeguarding minors and vulnerable groups.

A major impetus behind this legislative overhaul is the need to shield underage individuals and curb illicit gambling activities. By introducing stricter oversight and providing legal clarity for both domestic and foreign stakeholders, the reforms are designed to ensure a balanced and trustworthy market.

Legal certainty, coupled with robust oversight mechanisms, is expected to not only improve the safety of players but also bolster investor confidence by establishing a more predictable business environment.

Conajzar is also taking proactive steps to enhance enforcement through cooperative efforts. The commission has entered into collaboration agreements with both national institutions and international regulators, fostering a network of accountability that is expected to evolve and expand over time.

These strategic partnerships are intended to facilitate the exchange of regulatory best practices and ensure comprehensive monitoring of industry standards.

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Paraguay’s decision to restructure its gambling framework follows a broader shift across Latin America, where countries such as Brazil, Colombia, and Argentina have undertaken similar initiatives. These reforms aim to modernize legislation, stimulate economic development through foreign investment, and establish more effective regulatory systems.

With its introduction of Conajzar under the DNIT and emphasis on fair practices and compliance, Paraguay is positioning itself alongside regional peers in the push to balance economic growth with responsible gaming governance.

This transformative step underscores the nation’s commitment to turning gambling into a regulated, revenue-generating asset—one that can support public services while protecting players and investors alike.

Source:

“New Paraguay Gambling Laws Signed to Eliminate Monopoly“, vivogaming.com, May 21, 2025.