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Paraguay has taken a big step towards modernizing its gaming market with the recent passing of Law 7438, which operators claim will redefine the local market, grow tax revenue, and attract foreign and domestic investment. Industry leaders also expect the new system to build on anti-illegal gambling measures, offering a clearer legal path for both players and operators.
Lorena Rojas, president of the Paraguayan Association of Gambling Operators (APOJA), is hopeful that the law offers a promising future for the country’s entertainment sector. In an interview with La Nación, she pointed out that the law marks the beginning of a systematic and expandable national gambling sector. “This is just the first step,” said Rojas. “We’re finally seeing the potential to develop a legitimate entertainment industry in Paraguay with a framework that allows growth and encourages responsible operations.”
Reformed Regulatory Structure and Anti-Illegal Play Measures
One of the most significant reforms brought about by the law is the reorganization of the National Gambling Commission (Conajzar). The organization is currently under the administrative control of the National Directorate of Tax Revenues (DNIT), which will provide it with approximately 300 inspectors to function as in-field regulators.
This transition is expected to help eliminate unregulated gaming machines, such as sidewalk slot machines or those found in convenience stores. “These machines have been running rampant with no regulation for too long. Under this new system, we want to remove them from the streets and put them under regulation,” explained Rojas.
End of Monopoly and Competitive Licensing
Yet another radical move in Law 7438 is the abolition of monopolies of gambling operations, including lottery games and sports betting. Under the new law, three firms per category will be permitted to own a license. All current licenses will be amended to expire after three years, after which a public tender must be held to renew or transfer operating rights.
This allows the market to attract more competition, and with it, the potential for better services for consumers and more innovation by providers.
Push for Digital Identification and Safer Online Gambling
Rojas also emphasized the necessity of adopting digital player identification systems and specific domains to separate legal from illegal betting portals. Paraguay is the only country in the region that lacks a domain of this type. Argentina, on the other hand, uses the “.bet.ar” domain in its official gambling portals.
“This kind of identification ensures that players are of legal age, helps guarantee payouts, and reassures tech giants like Google and Meta to permit advertising from Paraguayan platforms,” said Rojas. “Currently, they only work with platforms in regulated markets.”
Paraguay is attempting to introduce an identical system through public licensing processes, which would make it easy for users to just verify whether a platform is legal and safe.
A Vehicle for Export and Investment Hopes
Aside from the domestic regulation, Rojas mentioned the long-term prospects of the bill in stimulating exports and technology-driven investment. She mentioned that already, gaming technology is being exported, and Paraguay would be an important production hub for export, especially with the launch of the Bioceanic Corridor.
“Entertainment is a global market. Let’s envision Paraguay as a point of triangulation in Mercosur, exporting items like roulette tables, slot machines, and accessories on the Bioceanic Route to the entire globe,” she explained. The values per unit of some of these items are more than USD 15,000.
Now that Law 7438 is on the books, Paraguay’s gaming industry is poised to be revolutionized. By combining regulatory certainty, greater competition, and fresh ways to fight black-market activity, the country aims to emerge as a regional center for gambling and entertainment technology, while bolstering consumer protection and filling public coffers.
Source: YogoNet
