Online gambling landscape in Paraguay alters with new regulations for digital casinos and sports wagering
Paraguay's Online Gambling Revolution
President Santiago Penña and Tax Revenue Director Óscar Orué dropped a major announcement this week under the shiny new rules: tax collections in Q1 2025 soared over 10% compared to last year, thanks in part to a boom in online gambling and sports betting. Here's a breakdown of the significant changes shaping Paraguay's gambling scene.
Letting the Competition Roar
One of the most notable shifts for online gambling in Paraguay is the entrance of new players. The betting pool and sports betting were previously controlled by a single company, resulting in limited competition and innovation. But that's all about to change. The new law permits the licensing of three companies for each betting category, finally dismantling historical monopolies and keeping pace with regional trends, like those we see in Brazil and Peru.
Authorities are optimistic that this deregulation will spark healthy competition and skyrocket state revenues. The bidding process will be managed by the National Gaming Commission (Conajzar), now nestled under the National Directorate of Tax Revenue (DNIT). This adjustment strengthens fiscal control and transparency in the allocation of permits.
A Crackdown on Clandestine Gambling and Tech Upgrades
Paraguay's new online gambling regulations aren't just about boosting the market; they're also designed to fight against illegal gambling operations. Conajzar and DNIT will seize equipment and block signals from online casinos operating under the radar, shielding users and ensuring tax collection.
The law threatens penalties as severe as five years in prison for those involved in clandestine gambling activities. It also incorporates advanced technological tools for the detection and blocking of illicit platforms. And don't forget about the little guys: measures are in place to keep minors safe, and licensed operators are now required to maintain separate accounts for their gambling activities, making control and transparency effortless.
A Win-Win for the Gambling Sector
The reform is already showing fruit — 2024 alone saw tax revenue from the gambling sector top 175 billion guaraníes, with a double-digit growth rate compared to the previous year. Authorities predict that, with the enactment of the new law and the opening of the market, revenue could triple in the coming years, all thanks to the arrival of new opponents and tighter regulation.
The iGaming segment, particularly online casinos and sports betting, remains the fastest-growing and is drawing attention from international players. The competition is likely to trigger innovation, enhance the player experience, and create new employment opportunities, in line with the government's broader economic objectives.
Setting Paraguay on track as a Regional Gaming Powerhouse
Law 7.438/25 and Conajzar's restructuring under the DNIT signify a turning point for iGaming in Paraguay. The entrance of the market, the toughening of the crackdown on clandestinity, and the professionalization of the regulatory body establish the foundations for a more competitive, transparent, and attractive ecosystem for investors and global operators.
In a Latin American region where regulation and technological innovation are critical to the development of the gaming industry, Paraguay is taking a major step toward the modernization of its gaming sector. The upcoming months will be crucial: the release of the regulations and the kickoff of new bidding processes will determine the pace and scope of this shift, with the potential to transform Paraguay into a regional benchmark in the gaming industry.
This article was originally published in Spanish on 6th May 2025.
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Bonus Insights
In May 2025, Legislation No. 7348/2025 shook up Paraguay's gambling landscape, ushering in an era of competition, modernization, and increased transparency. Key elements of the new framework include:- A licensing system: the market is now open to three private companies per betting category, fostering competition- A repositioned regulatory authority: the National Gaming Commission (Conajzar) is now under the jurisdiction of the National Tax Revenue Directorate (DNIT), giving it more power and control in monitoring and enforcement- Strict operator guidelines: from minimum distances from schools to background checks, measures are in place to ensure compliance and player protection- Enhanced enforcement powers: Conajzar and DNIT can block illegal platforms, seize equipment, and impose harsh penalties (including prison sentences) on unauthorized operators- Transparent financial reporting: operators are required to maintain separate accounts for gambling funds, improving fiscal control and accountability.
The new regulatory environment is expected to lead to significant tax revenue growth and sector expansion. In 2024, the gambling sector generated approximately PYG 175.8 billion (approximately $21.9 million). As the legal and regulated market expands, it's predicted that revenues could double or even surpass expectations over the coming years. The reform's ultimate goal is to create a more competitive, transparent, and attractive market for gambling and sports betting.
The new regulations in Paraguay's gaming industry have paved the way for an influx of technology in sports betting, as the law incorporates advanced technological tools for the detection and blocking of illicit platforms. The competitive landscape, enforced by the licensing of multiple companies in each betting category, will also foster innovative technological advancements within the sector.
In an effort to combat unlawful gambling activities, these regulations will leverage technology for seizing equipment and blocking signals from underground casinos, ensuring both user safety and tax collection. The entry of international players into Paraguay's iGaming segment, particularly in online casinos and sports betting, will further propel technological growth within the sector.
