Paraguay's gambling industry welcomes a major transformation. In May 2025, with the official signing of Law No. 7348/2025, the Paraguayan government took an important step towards breaking the gambling monopoly and establishing an open market.
The new law amends and expands the gambling regulations of Law No. 1016 implemented in 1997, setting up a new regulatory framework for both online and offline chance-based gambling games.
According to Carlos Liseras, chairman of the National Gambling Commission (Conajzar), who spoke to iGB, the tax revenue of the country after the reform may "far exceed" previous expectations. Previously, Paraguay had preliminarily approved the related bill in the second half of 2024 through Congress, establishing the principle that "all national gambling projects must be carried out through public bidding."
The core goal of the new bill is to promote the modernization of the gambling market by introducing more transparent and efficient regulatory mechanisms. This reform also formally establishes the legal status of Conajzar, granting it stronger regulatory powers. Conajzar becomes a devolved agency under the National Tax Administration (DNIT), responsible for authorizing gambling operations, setting rules, and supervising related activities at all levels nationwide.
Open market, attract investment, strengthen protection
The new law opens up access to the gambling market for private enterprises, moving away from the past restriction of entry only through bidding. Liseras pointed out that in addition to legal non-monopolistic competition, Paraguay's tax burden is also relatively low in the region, coupled with the rapid development of the national tourism industry, making it attractive to both domestic and foreign investors.
He emphasized that one of the starting points of this legislative amendment is to "prevent minors from being harmed by illegal gambling." At the same time, the new regulations also enhance investment security, providing clear legal protection for domestic and foreign legal operators.
Strict standards under the licensing system
The new regulations set higher qualifications for operators. Bidders must not only meet the terms and conditions proposed in the new regulations but also have on-site operational experience, sufficient funds, and no outstanding debts in domestic or foreign judicial systems.
In addition, all operating systems and equipment must pass the testing process approved by the national certification agency and meet the technical standards of Conajzar. The physical location of gambling venues is also restricted, required to be at least 200 meters away from schools, colleges, and other educational institutions.
Compliance brings benefits: Expected revenue may double or more
In 2024, Paraguay's gambling industry brought in 175.8 billion Guarani (approximately 21.9 million US dollars) in national revenue. Liseras predicts that this figure could double or even more after the new law takes effect. The new regulations help combat illegal operations and tax evasion, and enhance tax collection efficiency, with Conajzar and DNIT already having the necessary logistical and technical support.
"From the day the law officially takes effect, the regulatory agency will have the ability to directly combat underground gambling, curb tax evasion issues, and maximize national interests," Liseras emphasized.
Comprehensive reform of regulatory and cooperation mechanisms
Conajzar will continue to be responsible for reviewing bidding applications, granting licenses, approving new types of gambling games, and imposing penalties for violations. DNIT reviews all bidding processes and licensing terms, and processes not approved by it will be invalid.
In the future, the regulatory agency will maintain close communication with operators and sign cooperation agreements with other national agencies to enhance market regulatory capabilities and information sharing levels. Currently, these agreements have gradually taken effect, with plans to further expand the scope of cooperation in the future.
Liseras concluded: "We are building a new gambling ecosystem that is attractive to investors, protective of players, and contributive to the nation."
