As Paraguay works to position itself as a promising jurisdiction for gaming and entertainment investments, a growing institutional overlap between two regulatory bodies—Conajzar (National Gambling Commission) and Diben (Charity and Welfare Directorate)—is raising concerns over governance and legal clarity.
According to recent reports, both institutions are authorizing gaming activities independently, creating confusion among operators and potential investors. In some cases, Diben has issued approvals for gaming operations without the endorsement or coordination with Conajzar, which traditionally oversees the regulatory framework for gambling in Paraguay.
This regulatory fragmentation introduces legal ambiguity, especially in areas such as licensing, compliance monitoring, and revenue allocation. Experts warn that such conflicts could jeopardize investor confidence, delay project execution, or lead to legal disputes.
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"Clear jurisdiction and unified oversight are essential for market stability," said a regional gaming consultant. "Without it, even the best opportunities carry unnecessary risk."
For international investors, the Paraguayan market still offers competitive tax structures, low operational costs, and a growing consumer base. However, the current institutional misalignment underscores the need for regulatory reform and better-defined roles.
The private sector is calling for dialogue and legal harmonization to ensure that Paraguay can provide a secure, transparent, and investment-friendly environment. With neighboring countries also competing for gaming sector growth, resolving this internal governance issue is crucial for Paraguay to stay in the game.
