Asunción, Paraguay – In a landmark move set to reshape its gambling industry, Paraguay has dismantled its decades-long state monopoly, paving the way for private operators to enter the market. The groundbreaking regulatory overhaul is anticipated to significantly boost national revenue, according to Carlos Liseras, President of the National Gambling Commission (Conajzar).
The Paraguayan government officially enacted Law No. 7348/2025 last Wednesday, which amends and expands the existing gambling law (Law No. 1016/1997). This new legislation establishes a clear regulatory framework for private entities to legally operate both online and land-based gambling businesses.
This decisive step follows the Chamber of Deputies' approval of the related bill in late 2024, signaling Paraguay's commitment to ending the state's exclusive control over the gambling sector. The previous law had stipulated that "the operation of the national lottery business can only be carried out through public bidding," effectively maintaining a state-led monopoly. However, the recent legal changes underscore Paraguay's focus on modernizing its gambling industry regulations, enhancing transparency and efficiency, and fostering industry growth through a competitive market environment.
A central aspect of the reformed legislation is the clarification and strengthening of the legal standing and authority of Conajzar, a decentralized body under the National Tax Directorate (DNIT). Conajzar will now have jurisdiction over the newly competitive market, enabling it to more effectively oversee and regulate the entire gambling industry. The Paraguayan government projects a substantial increase in national fiscal revenue from the gambling sector as a result of this measure.
Player Protection Prioritized: Fostering a Transparent and Safe Gambling Environment
The new regulations offer private operators a direct route to market entry, a departure from the previous system that only allowed participation through bidding processes. In an interview with international gambling media outlet iGB, Conajzar President Carlos Liseras highlighted Paraguay's attractiveness to private companies, stating, "Paraguay has a non-monopoly gambling market law, maintains lower tax rates compared to neighboring countries, and is emerging as a significant country with increasing tourist visits."
Liseras also emphasized that a key motivation behind the legal reform is to protect minors from the harmful effects of illegal gambling. He added, "We also expect to improve the investment climate by providing legal certainty to domestic and foreign investors who invest in legal gambling businesses authorized by the regulatory authority."
Conajzar's Role Defined: Crackdown on Illegal Activities Looming
The amended law clearly defines the responsibilities of Conajzar. The commission will have the authority to grant operating licenses for gambling businesses at the national, regional, and municipal levels, as well as to establish related regulations. Furthermore, Conajzar will be responsible for approving new types of gambling games and imposing sanctions on companies that violate the regulations.
Working in collaboration with the DNIT, Conajzar will efficiently manage the approval, administration, and supervision of license tenders and national concession processes. The head of the DNIT will preside over Conajzar, with representatives from state governments, municipalities, the Ministry of Interior, and the National Charity and Social Assistance Board also participating in the commission, ensuring diverse stakeholder input.
Crucially, the DNIT will conduct a comprehensive review of the gambling regulations prepared by Conajzar, as well as the terms and conditions of any bidding or concession processes. Any processes carried out without DNIT approval will be considered null and void, lacking legal effect. This measure is seen as a vital safeguard for ensuring the transparency and fairness of gambling regulation.
President Liseras noted that Paraguay's state revenue from the gambling industry reached a record 175.8 billion Paraguayan Guaraníes (PYG, approximately $21.9 million USD) in 2024, and he anticipates a significant surge in this figure with Conajzar's integration under the DNIT. He asserted, "With the implementation of the new law, the DNIT and Conajzar will have the necessary logistics and infrastructure to directly confront illegal gambling activities, effectively preventing tax evasion that causes significant losses to the national treasury."
Strict Eligibility Criteria and Operating Regulations Introduced
According to Liseras, gambling business licenses will be granted to bidders who meet the requirements outlined in the new bidding conditions. These include having qualified personnel with sufficient experience in the relevant field, demonstrating the necessary financial capacity, and proving the absence of outstanding debts with the Paraguayan and international judicial systems.
The new regulations mandate that electronic gaming machines and computer systems used by operators must undergo inspection by accredited testing bodies certified by the National Accreditation Body and comply with Conajzar's guidelines. Additionally, gambling establishments must be located at least 200 meters away from educational facilities such as schools and universities, a crucial safety measure aimed at protecting minors.
Bright Prospects for Paraguay's Gambling Market
President Liseras expressed his confidence that the new regulations will inject significant dynamism into Paraguay's gambling industry and national finances, contributing to increased tax revenue and safeguarding bettors from illegal operators. Conajzar plans to maintain ongoing communication with both existing and new market entrants.
"We have signed agreements with other government entities to optimize the operation and improve the management of gambling operators, and we have agreements with institutions in other countries that are currently in effect, and we plan to expand these agreements further," Liseras stated.
This reform of Paraguay's gambling market is expected to revitalize a long-closed sector, foster a transparent and fair competitive environment, and ultimately have a positive impact on the nation's economic development. The focus now shifts to whether a healthy gambling culture can take root within the new legal framework.
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