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Paraguay modernises gambling regulation under new decree

An expanded legal framework has been established for Paraguay’s betting industry after the country took steps to eliminate the gambling monopoly near the end of 2024.

The newly published decree (No. 3846/2025), which the government intends to update, modernise, and strengthen regulation of the sector, regulates Law No. 7438/2025 while also amending and expanding Law No. 1016/1997. 

One notable modification is the inclusion of the National Gaming Commission (CONAJZAR) as a decentralised body of the National Directorate of Tax Revenue (DNIT).

The new structure will see a DNIT representative take on the role of Chair while representatives of governorships, municipalities and the Ministry of the Interior will also play a role in steering regulation.

This change marks a fundamental shift in the balance of power between the DNIT and CONAJZAR. Prior to these changes, the DNIT reviewed and approved terms, but it now has the authority to design them from the start.

Some of the Commission’s new authorities will include the operation of gambling establishments, issuing gambling regulations at the national, departmental, and municipal levels, issuing its own operating regulations as a collegiate body and approving new types of gambling establishments.

It will also prepare and approve the terms and conditions for tenders or concessions, authorise calls for public bids, award licenses, request assistance from the DNIT to carry out the tasks of verification, control, and oversight of premises and concessions as well as order the imposition of fines, termination or revocation of concession contracts.

Paraguay is becoming an increasingly significant market in the wider Latin American betting sector, which as a whole has been enjoying considerable growth over the past few years with new markets launched, international companies setting up shop, and overall value rising.

While many companies are understandably focused on the new monolithic market of Brazil, smaller ones like Paraguay still represent a lot of value for operators. Betsson, for example, obtained a casino licence in the country last year, and highlighted this in its recent Q1 2025 report.

It was in January this year that President Santiago Peña approved the bill to “establish a new legal regime for the exploitation of games of chance” in the country.

He explained at the time that such changes introduced by the bill will allow Paraguay’s government to de-monopolise its gambling sector as measures introduce new competition in the lottery and sports betting sectors, expanding from one to three licensees.

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