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It extends the scope of Law No. 1016/1997, which governs games of chance. This reform aims to renew the control, increase the transparency of such activity, and bring regulations into line with the rapid changes in the gaming industry, particularly in the area of digital channels for betting.
With the objective of understanding such reform and its scope better, Javier Balbuena, a lawyer, director of Gaming Consultores, and former president of the National Gambling Commission (CONAJZAR), spoke to SBC Noticias about the opportunities, uncertainties, and structural challenges that come with this new model.
Balbuena highlighted that the changes mark one of the biggest regulatory changes for the Paraguayan gaming market in the last ten years. The law brought up to date a system that had become outdated, both technologically and operationally. But while recognising the progress it has made, he warned that ultimately its effectiveness can be gauged only in retrospect. As he noted, “Over time, we will see whether the new regulatory structure will really be efficient.”
Modernization Goals and Early Implementation Challenges
According to Balbuena, the reform was designed to fix clear regulatory gaps and establish more consistent procedures for licensing, adjudication, and rule validation, all with stronger institutional coordination. One of the most striking developments is the express recognition of digital gaming modalities, which up until now had not been fully or correctly included within the legal framework.
Still, he cautioned that Paraguay is still at the initial stage of implementation. The country needs at least one complete year of operations under the new institutional structure to draw meaningful conclusions about its performance. He expressed apprehension that overlapping steps in administration could result in reduced agility: “With the new system, there is a risk that the superposition of administrative instances could become an operational obstacle”, he said, explaining that the short-term priority is to standardize processes, while the medium-term challenge is to consolidate “a modern, transparent, and sustainable regulatory model.”
Institutional Reorganization and Inter-Agency Coordination
One of the most major transformational elements of the reform was the restructuring of CONAJZAR into a decentralized body under the National Directorate of Tax Revenue, DNIT. To Balbuena, this was an in-depth institutional change.
This new model shows DNIT in a strategic supervisory role, with an emphasis on policy alignment, tax oversight, and interagency coordination, whereas CONAJZAR maintains its technical specialization in the regularization and enforcement of laws. The reform creates the General Directorate of Games of Chance, conceived as an executive-technical body with responsibilities related to the control policies, statistical production, concession monitoring, and operational coordination.
Balbuena emphasized that this architecture would only work if duplication and bureaucracy can be avoided: “The real challenge will be ensuring that integration does not undermine the regulator’s technical capacity or its ability to respond quickly to market needs.”
Record Growth Fueled by Digital Expansion
From a financial perspective, Paraguay’s gaming market is gaining historic traction as it has already surpassed last year’s totals with a revenue of over 177 billion guaranies as of October. This growth is attributed to structural elements such as automatic variations in concessions, as well as the growth and normalization of online gambling platforms by Balbuena.
Specifically, the report mentioned that the biggest driver of the industry is the online gaming segment, especially digital sports betting. In this regard, regulatory online gaming activities in the form of revamped lottery games and the shift of slot machines to controlled environments are also major driving forces. Similarly, other categories of gaming solutions include the use of digital bingo.
Investment, Control, and Sustainability
Looking ahead, Balbuena believes the key objective for the development of this industry should be to turn it into a really attractive space for investment. That opportunity extends beyond operations to technological infrastructures, data processing, and specialized software and service ecosystems capable of giving value throughout the economy.
“If the sector is able to offer clear rules, predictability, and legal certainty, it will attract national and international capital, create formal employment, and increase its contribution to public finances”, he said.
In the meantime, he underlined that market supervision should be reinforced, illegality and money laundering fought, and player protection policy enhanced to guarantee sustainable development.
A Reform with Promise
Paraguay’s revamped regulatory framework marks a decisive move toward modernization and institutional alignment. But as Balbuena underlined, its real impact will depend on execution, coordination capacity, and the balance between oversight rigor and operational efficiency.
Only after the system matures, he concluded, will the country be able to determine whether the new structure fulfills its ambition of building a transparent, competitive, and forward-looking gaming industry.
Source: SBC
