As of February 17, 2025, Paraguay is actively implementing the reforms introduced by Law 7438, signed by President Santiago Peña on January 6, 2025. This legislation aims to modernize the country's gambling industry by dismantling existing monopolies and fostering a competitive market environment.
A significant aspect of the law is the restructuring of the National Gambling Commission (Conajzar), which has been integrated into the National Directorate of Tax Revenues (DNIT). This move is designed to enhance regulatory oversight and improve tax collection from gambling activities. Conajzar, now operating under DNIT, has been granted expanded resources, including 800 inspectors and advanced legal tools to combat illegal gambling operations. These measures aim to block unauthorized online gambling platforms and seize equipment associated with illicit activities.
Paraguay promotes bill to “free gambling” and “remove legal monopolies”
The legislation also opens the market to new operators by eliminating monopolies, particularly in the lottery and sports betting sectors. The government plans to issue licenses to multiple operators, increasing from one to three licensees in these areas. This initiative is expected to stimulate competition, attract foreign investment, and boost government revenue.
In terms of economic impact, the sports betting market in Paraguay is projected to reach US$65.12 million in revenue by the end of 2025, with an anticipated annual growth rate of 4.67% between 2025 and 2029.
Despite these advancements, challenges persist. Efforts to combat illegal gambling are ongoing, with Conajzar conducting continuous operations to identify and shut down unlicensed activities. Additionally, public opinion remains divided, with concerns about potential social issues such as gambling addiction and financial instability.
As Paraguay progresses with these reforms, the success of its gambling industry will depend on effective regulation, robust enforcement, and the ability to balance economic benefits with social responsibility.
