Paraguay gambling monopoly ends as landmark regulation enacted

A significant turning point has been reached in Paraguay’s gambling landscape, as Conajzar President Carlos Liseras informs iGB that tax revenues are projected to far exceed previous expectations.

On Wednesday, Law No. 7348/2025 was enacted, amending and enhancing existing gambling legislation under Law No. 1016/1997. This pivotal law establishes a comprehensive regulatory framework for both online and offline gaming operators.

Paraguay began dismantling its gambling monopoly towards the close of 2024 when its Chamber of Deputies approved revisions to existing laws, which previously mandated that the “exploitation of national games of chance will be conducted exclusively through public tender.”

The newly enacted laws aim to modernize and reinforce the regulation of the gambling sector in Paraguay, cultivating a more transparent and efficient framework.

This legislative overhaul has officially established the National Gaming Commission (Conajzar) as a decentralized entity under the National Directorate of Tax Revenue (DNIT). This restructuring significantly enhances the regulator’s authority, granting it jurisdiction over a competitive market.

The Paraguayan government anticipates that these developments will lead to increased state contributions from the gambling sector.

Player Protection: A Top Priority for Paraguay’s Regulator

The new regulations facilitate the entry of private operators into Paraguay’s gambling market, a shift from the prior tender-only access model.

In highlighting the appeal of this emerging market, Conajzar President Carlos Liseras tells iGB: “Beyond the introduction of demonopolization laws, Paraguay offers the lowest tax burdens in the region, making it an attractive hub for both local and international operators.”

Liseras emphasizes that one of the primary motivations for revising the law is to enhance protections for minors against the detrimental impacts of illegal gambling. He states, “These reforms provide legal assurance for both national and foreign investors dedicated to operating legally sanctioned games of chance.”

Clearly Defined Roles for Paraguay’s Gambling Regulator

Recent changes in legislation have clarified Conajzar’s responsibilities, which now include the authorization of games of chance and the issuance of regulations at various governance levels—national, departmental, and municipal.

Conajzar will be responsible for sanctioning companies that operate outside established regulations and approving new types of wagering activities.

The Commission will also collaborate with the DNIT to facilitate the licensing, oversight, and approval processes for state concessions and bids.

A DNIT representative will serve as chairperson within the restructured regulator, which will also include representatives from governorships, municipalities, the Ministry of the Interior, and the Directorate of Charity and Social Assistance.

Moreover, DNIT will conduct thorough reviews of Conajzar’s gambling regulations and the conditions for licensing and concessions. Without DNIT’s approval, these processes will be deemed invalid and unenforceable.

Liseras indicates that state contributions from gambling in Paraguay reached a historic PYG175.8 billion (approximately $21.9 million) in 2024, a number he expects to double following Conajzar’s alignment with DNIT’s operational framework.

“Our estimates suggest revenues could substantially surpass current projections, particularly given the new law equips us with the logistics necessary to combat illegal gambling and curb tax evasion,” Liseras elaborates.

Bidders Must Meet New Terms and Conditions with Industry Expertise

According to Liseras, licenses will only be granted to bids that adhere to the criteria outlined in the new bidding terms and conditions.

Participants must demonstrate relevant experience in the gambling space, possess adequate financial resources, and have no outstanding legal issues in Paraguay or internationally.

The regulations stipulate that electronic gaming machines and associated systems must comply with Conajzar guidelines and undergo certification by an accredited inspection body.

Additionally, gambling facilities must be located at least 200 meters away from educational institutions, such as schools, colleges, and universities.

Optimistic Horizons for Paraguay’s Gambling Industry

Liseras confidently asserts that these regulations will provide a significant boost to both the Paraguayan gambling sector and the national economy, enhancing contributions while safeguarding bettors from illegal operations.

The regulatory body will maintain ongoing engagement with both established operators and new market entrants.

“Furthermore, we have executed agreements with various governmental agencies aimed at optimizing operational efficiencies and enhancing oversight of gambling activities,” Liseras concludes.

“These agreements, which involve international collaborations, are active and there are plans to expand them further.”