In a significant move that will reshape the country’s gambling landscape, Paraguay has enacted Law No. 7348/2025, which amends the existing gambling laws and opens the door to private operators.
Signed into law on May 7, 2025, the new regulations are a pivotal step towards ending Paraguay’s state-run gambling monopoly, which had restricted market access to public tender processes since the original law was passed in 1997.
Major Step Towards Gambling Market Liberalization
The changes were approved by the Chamber of Deputies in late 2024, and the final passage of the bill represents a major shift in the way gambling is managed in Paraguay. The new law provides a modernized framework designed to improve transparency, efficiency, and regulation of the sector, with a focus on attracting private investment while ensuring better oversight.
Carlos Liseras, President of the National Gaming Commission (Conajzar), expressed optimism about the law’s potential to increase tax revenues, predicting that state contributions from gambling could rise significantly, far exceeding current expectations.
In fact, Paraguay saw a record PYG175.8 billion ($21.9 million) in tax revenue from gambling in 2024, and Liseras anticipates that this figure could double or more, as the law gives Conajzar the tools needed to combat illegal gambling and tax evasion more effectively.
New Law Provides Legal Clarity and Investor Protection
The landmark law clarifies the role of Conajzar in overseeing the gambling sector, with expanded responsibilities under the jurisdiction of the National Directorate of Tax Revenue (DNIT). The National Gaming Commission will now be able to approve new types of gambling, issue licenses, and enforce regulations at national, departmental, and municipal levels.
This framework is designed to foster competition by allowing private operators to enter the market, a significant shift from the old system, where gambling was managed only through public tenders. Conajzar President Carlos Liseras explained that the new regulation aims not only to encourage foreign investment but also to protect both local and international players.
“In addition to the fact that Paraguay has a law on the demonopolization of gambling, the tax burden is the lowest in the region, and Paraguay has become an important country for visiting,” Liseras stated.
Moreover, the reforms are intended to safeguard minors from the harmful effects of illegal gambling, which has been a growing concern in recent years. Under the new regulatory system, operators must meet stringent requirements, including appropriate experience in gambling, adequate financial backing, and clean legal records.
These measures will ensure that only responsible and compliant businesses operate in Paraguay’s gambling market.
Economic Growth and Competitive Gambling Landscape
The reform is expected to bring about significant economic and social benefits, particularly in terms of job creation and foreign investment. By dismantling the monopoly, Paraguay has opened up opportunities for private companies, which will bring more variety and choice to the gambling market.
Liseras emphasized that these reforms would allow workers, such as lottery brokers, to choose among competing operators, thereby enhancing the job market’s competitiveness and attractiveness.
The new law also mandates that all gambling establishments be located at least 200 meters away from educational institutions, such as schools and universities, to protect young people from exposure to gambling. Additionally, gaming equipment must comply with technical specifications and undergo certification by accredited inspection entities to ensure fairness and safety.
As Paraguay enters a new era of liberalized gambling, Liseras believes that the country is poised to become an even more attractive destination for investment, with an efficient regulatory system and promising growth potential. The reforms, he says, will not only enhance the country’s economic outlook but also provide a solid foundation for a competitive and fair gambling market.
Source:
”Paraguay enacts landmark regulation to eliminate gambling monopoly”, igamingbusiness.com, May 9, 2025.