Paraguay has taken a bold step toward modernizing its gambling industry. President Santiago Peña has signed off on a sweeping reform of the country’s gambling laws, aiming to dismantle monopolies and create a more competitive, transparent, and regulated environment. The new legislation, passed by Congress in December 2024, represents a significant shift in the country’s approach to games of chance.
Opening the Market: New Opportunities for Operators
The reform paves the way for greater competition by breaking the monopoly that previously dominated the industry. This means new operators can enter the market, diversifying options for players and expanding business opportunities.
- Unlimited Licensing: Operators will now have access to unlimited licenses for gambling activities, including online betting. This move is expected to foster innovation and bring Paraguay in line with global gambling trends.
- Expanded License Categories: More licenses will be issued for lotteries and sports betting, ensuring fairer competition.
These updates come as Paraguay recognizes the need for a legal framework that can keep up with technological advances and growing demand for online gambling.
Why Reform Was Urgent: Corruption Scandals and Public Pressure
The push for reform gained traction after corruption allegations rocked the gambling sector in 2022. Conajzar, Paraguay’s gambling commission, came under fire for awarding a national sportsbook license to Apost.la without proper government oversight. This scandal exposed systemic issues and spurred calls for change.
Lorena Rojas, head of the Association of Gaming Operators (APOJA), led the charge for reform, citing the need for transparency and fairness. Her advocacy, combined with public outrage, forced the government to act. In 2024, President Peña fast-tracked the bill, breaking a legislative impasse in Congress.
“This reform wasn’t just a legal necessity but a moral obligation,” said Rojas, reflecting on the efforts to rebuild trust in the industry.
A New Regulatory Landscape
One of the most significant aspects of the reform is the restructuring of regulatory oversight. The responsibility for gambling regulation will shift from Conajzar to the National Directorate of Tax Revenue (DNIT). The DNIT’s broader operational capacity and expertise in tax collection are seen as key to ensuring the effectiveness of the new system.
Carlos Liseras, President of Conajzar, expressed optimism about the changes:
“We had the intent but lacked the tools. This reform provides us with what we need to enforce the law effectively.”
- Expanded Workforce: Conajzar will gain 800 inspectors, strengthening its ability to monitor compliance.
- Digital Enforcement: Collaboration with Conatel and the national computing center will help block unauthorized gambling platforms.
This multi-pronged approach is expected to address the pervasive issue of illegal gambling, which has long plagued Paraguay’s gaming sector.
Benefits Beyond Regulation: Economic and Social Impacts
The reform is not just about regulation—it’s also about revenue and accountability. By attracting more operators and improving tax collection, the government anticipates a boost in public funds. These funds could potentially be redirected to areas like education, healthcare, and infrastructure.
Supporters argue that the reforms will also enhance consumer confidence. With better oversight, players can trust that their money is safe and that games are fair. Moreover, the introduction of online gambling regulations will protect players from fraud and ensure that operators meet stringent standards.
The Road Ahead: Challenges and Expectations
Despite widespread support, implementing these reforms will come with challenges. Critics worry about the DNIT’s ability to manage the transition effectively and whether Conajzar’s expanded resources will be sufficient to handle enforcement.
Some industry experts have also raised concerns about whether smaller operators can compete with larger, well-established firms under the new system. Ensuring a level playing field will require ongoing vigilance.
However, the general consensus is that the reforms signal a fresh start for Paraguay’s gambling industry. By addressing corruption, improving oversight, and opening up the market, the government is setting the stage for a more accountable and dynamic sector.
As Paraguay steps into this new era, all eyes will be on the outcomes—both in terms of industry growth and the government’s ability to deliver on its promises.
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