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The recent SAGSE Paraguay 2025 held in Asunción proved to be the platform for a major revelation of the gaming industry in the country. National Directorate of Tax Revenues (DNIT) director Óscar Orué announced the newly sanctioned Law No. 7438/2025, modifying and expanding the existing Law No. 1016/1997. The law amendment will transform the gambling industry in Paraguay by ending monopolies, expanding competition, and restructuring how gaming revenues are distributed.
End of Sports Betting and Lottery Monopolies
Among the most significant innovations supported by Law 7438/2025 is the elimination of monopoly rights in certain gaming forms, like the lottery (quiniela) and sports betting. The latter has been run under a single-operator regime so far. Under the new model, up to three licensed operators per game will be allowed, supporting fairer competition, diversifying the offerings for users, and generating more state revenue.
For Orué, the reform responds to a double objective: market diversification and stepping up the fight against illegal gambling. By accepting several operators, authorities aim to bring in additional activity into the formal economy, increase transparency, and improve state control.
Sports Betting Licenses to Be Tendered in 2026
The principal declaration was the confirmation that the sports betting sector will be opened to new operators through a public tender in 2026. The action is taken at the request of President Santiago Peña, even though Daruma SAM (Apostala) already holds the sports betting concession until 2028.
The early tender will give the chance to incorporate two additional operators, effectively ending the monopoly in this industry and altering the competitive market landscape. The move is expected to stimulate fresh investment and innovation in betting services for the public.
New Revenue Distribution Model
The reform also alters the method of payment of concession fees on games of chance. Payment is to be collected by the DNIT and distributed to governments at various levels and social programs in the new system.
The distribution percentage varies with the jurisdiction of the game:
- National-level games: 30% to municipal governments (such as Asunción’s), 30% to departmental governments, 30% to the Directorate of Charity and Social Assistance (DIBEN), and 10% to the National Treasury.
- Asunción-operated games: 25% to the municipality of the city, 20% to departmental governments, 20% to less-income municipalities, 25% to DIBEN, and 10% to General Revenues.
- Department and local games: 30% to government levels and DIBEN, and 10% to the National Treasury.
The above model of redistribution seeks to ensure that gaming revenue has a broader and better-balanced social effect, extending to urban and poorer areas alike.
Formalization, Social Responsibility, and Player Protection
The law also aims at the expansion of the market and makes provisions for formalization and accountable gaming more difficult. Orué pointed out that promoting voluntary compliance with legislation is one of the most salient goals, along with stifling tax evasion and fighting smuggling involved in gambling operations.
Full consideration will be made of responsible gaming policy, including the prevention of gambling by minors and the regulation of the promotion of gambling products. This brings Paraguay’s regulatory strategy in line with international consumer protection best practice.
A Competitive and Transparent Future for Paraguay’s Gaming Industry
For operators and investors, the new legislation represents a chance to enter a growing and newly liberalized market. Having multiple licensed operators in key industries and an open and modern regulatory system will likely form an exhilarating business environment.
Nevertheless, Orué underscored that the expanded opportunities will come with stringent state regulation. The government’s objective is to ensure that the development of the industry translates into actual benefits to society in the form of tax returns, employment, and social programs funded by gaming proceeds.
The presentation concluded by appealing to the public-private partnership, which highlighted that the success of this reform depends on transparent operations and shared commitment to sustainable growth. Well implemented, Law 7438/2025 can be an augur of a new era for Paraguay’s gaming industry, one of competition, responsibility, and higher social good.
Source: YogoNet
