While gambling is legal in Paraguay, a monopoly on the industry has stifled growth and made it more difficult for the sector to develop. This looks set to end, with the signing of Law No. 7348/2025 this month representing a strategic shift. Let’s find out more about the new Paraguay gambling laws.
Introduction of Competitive Bidding
Previously, all games of chance in Paraguay were awarded through public tenders. Under Law No. 7348/2025, a regulated framework will be established which will allow for private companies to enter the country’s gambling sector. They will be allowed to apply for licenses under new terms and conditions.
Establishment of Conajzar Under DNIT
Perhaps the most important part of these new Paraguay gambling laws is the establishment of the National Gaming Commission (Conajzar). This decentralised body will exist under the National Directorate of Tax Revenue (DNIT) and will be responsible for enhancing market transparency and enforcing regulations. The Conajzar’s duties will also include authorising new games, coordinating bids and issuing sanctions to operators found to be in breach of regulations.
Regulatory Goals and Market Impact
The new Paraguay gambling laws aim to modernise the sector while ensuring better regulatory oversight. Through improvements to regulation enforcement and a focus on curbing tax evasion, authorities hope the laws will boost state contributions through revenue collection.
State revenues from gambling hit PYG175.8 billion (approximately $21.9 million) in 2024. The government has projected that this figure could double under the new structure due to strengthened compliance and operational transparency.
Additionally, Paraguay’s growing tourism industry and low tax burden mean the government hope it could prove to be an attractive destination for operators looking to expand in the South American gaming market.
Licensing Conditions and Compliance Requirements
Under the terms of the new Paraguay gambling laws, private operators must now meet stricter licensing criteria. To be eligible for a licence, operators must:
- Demonstrate prior experience in the gambling sector
- Show adequate financial capacity
- Hold no unresolved legal issues, domestically or internationally
Operators are also required to comply with technical standards. Electronic gaming systems must be certified by an entity accredited by the National Accreditation Body. Additionally, gaming facilities cannot be located within 200 meters of educational institutions.
Focus on Player Protection and Legal Certainty
A primary motivation for the reform was to protect minors and combat illegal gambling. New laws aim to safeguard both local and foreign investors by providing legal certainty, with oversight mechanisms ensuring consistent compliance and fair operation across the board.
Cooperation and Future Agreements
The regulator will maintain regular communication with both current and prospective operators. To enhance oversight, Conajzar has entered into cooperative agreements with domestic institutions and international bodies. These partnerships are active and expected to expand further, which should help to ensure that regulations are being adhered to.
Conclusion
This move by Paraguay mirrors a broader trend seen across South America, where governments are reassessing outdated gambling laws to better align with modern market realities. Countries like Brazil, Colombia, and Argentina have also introduced reforms in recent years to open markets, attract investment, and tighten oversight. The shift reflects a regional recognition that well-regulated gambling can generate significant public revenue while curbing illegal activity. Paraguay’s integration of Conajzar under DNIT, along with its emphasis on transparency and investor protection, fits into this pattern of balancing economic opportunity with responsible regulation and consumer safeguards in a fast-evolving industry.
