Paraguay Legalizes Competitive Gambling, Ends Monopoly

A major shift is underway in Latin America’s gaming landscape—Paraguay has officially ended its gambling monopoly.

With the enactment of Law No. 7348/2025, the country has replaced decades-old legislation with a modern, transparent framework welcoming private operators into both online and land-based markets.

This bold reform is expected to double state gambling revenue, curb illegal operations, and attract foreign investment into a newly regulated and open sector.

Explore how Paraguay is rewriting its gambling future—and why international operators and regulators are paying close attention.

Paraguay Ends Gambling Monopoly with Landmark Law 7348: A New Era for iGaming and Land-Based Operators

3 Key Points

• Paraguay has dismantled its gambling monopoly, enabling private sector participation under strict new regulations.
• Conajzar’s role has been clarified and expanded, now operating under the supervision of the National Directorate of Tax Revenue (DNIT).
• The reform aims to double state revenue, enhance player protection, and reduce illegal gambling activities through improved oversight and technology.

A New Legal Era for Gambling in Paraguay

Signed into law in May 2025, Law No. 7348/2025 marks a watershed moment for Paraguay’s gaming industry.
It updates the outdated Law No. 1016/1997, replaces monopolistic practices, and establishes a competitive, decentralized market.

At its core, the new law allows private companies to apply for licenses directly, eliminating the previous requirement to participate exclusively through public tenders.

This legislative breakthrough is accompanied by the full empowerment of Conajzar (the National Gaming Commission), which will now operate as a decentralized body within the National Directorate of Tax Revenue (DNIT).

Why This Reform Matters

1. Boost to Public Finances and Legal Certainty

According to Conajzar President Carlos Liseras, the reform could more than double annual tax contributions, which hit a record PYG175.8 billion (US$21.9 million) in 2024.

With tighter enforcement and new licensing rules, Paraguay can finally confront tax evasion and unlicensed gambling.

Liseras emphasized that the new structure ensures legal certainty for investors, adding that Paraguay has the region’s lowest tax burden, making it highly attractive for foreign gaming companies.

2. Focus on Responsible Gambling and Public Safety

The legislation mandates that all gambling operators implement access controls, especially to prevent underage gambling.

Licensing conditions include:

• Verified experience in the gambling industry
• Strong financial capacity
• Clean legal records both domestically and internationally
• Certified electronic systems and gaming machines
• Location restrictions (must be 200m from educational institutions)

AI-driven compliance tools and external audits will also play a key role in monitoring operations.

3. Stronger Regulatory Structure and International Cooperation

Conajzar will now:

• Approve new gambling formats
• Monitor regulatory compliance
• Impose sanctions for violations
• Work with DNIT to oversee bids and license issuance

The new structure includes oversight from multiple government bodies, including the Ministry of the Interior, local municipalities, and the Directorate of Charity and Social Assistance.

Additionally, Paraguay has signed international cooperation agreements to strengthen enforcement and improve standards.

Preparing for a Competitive Licensing Environment

Bidders must now comply with new Terms and Conditions that reflect international best practices.

These include:

• Use of certified software and RNG systems
• Ongoing audits by DNIT and accredited bodies
• Mandatory Corporate Social Responsibility (CSR) allocations

Liseras confirmed that Paraguay has already begun drafting the technical criteria for application reviews, ensuring a rigorous, transparent selection process.

Paraguay’s passage of Law 7348/2025 is a transformative moment for its gambling industry.
By eliminating the monopoly and opening the market to qualified private operators, the country is embracing transparency, competition, and modernization.

This reform is expected to attract regional and global operators, foster foreign direct investment, and dramatically increase state revenues.

Most importantly, the law puts in place the safeguards needed to protect consumers, especially youth, while encouraging sustainable growth in the sector.

With Conajzar and DNIT working in tandem, Paraguay is now positioned as one of Latin America’s most promising regulated gambling markets.