Paraguay’s President, Santiago Peña, has enacted a transformative law aimed at making major changes to the regulation of gambling in Paraguay.

The newly signed Law 7438, approved by the Chamber of Deputies in December, seeks to address critical challenges in the industry, including illegal gambling, the protection of minors, and the end of the previous monopoly system.

The legislation introduces sweeping reforms, transferring the oversight of the National Gambling Commission (Conajzar, for its Spanish acronym) to the National Directorate of Tax Revenues (DNIT), which the government argues will boost transparency and operational efficiency.

This structural shift grants Conajzar enhanced logistical and technical resources to effectively monitor and control the industry.

By separating the commission from the Ministry of Economy and Finance, the law aims to strengthen its ability to address illegal activities and adapt to the demands of a rapidly evolving market.

The transfer of Conajzar’s supervision to DNIT is expected to bolster efforts to combat the unlicensed gambling.

New provisions under the law allow for the blocking of unauthorised online gambling sites and the seizure of equipment linked to illicit operations.

These measures include penalties of up to five years in prison for those found engaging in illegal gambling-related practices.

The crackdown is complemented by the distribution of licenses in three specific categories, impacting key sectors such as sports betting and the traditional Quiniela lottery.

Carlos Liseras, head of Conajzar, emphasised the significance of these changes in a press conference at Mburuvicha Róga.

He highlighted the operational advantages brought by DNIT’s nationwide presence, which will facilitate the implementation of stringent controls.

“We now have the capability to intervene in clandestine online casinos and other unauthorized gambling platforms across the country,” he said. “This will ensure greater compliance with the law and protect vulnerable populations, especially minors.”

Competition breeds innovation

The enactment of Law 7438 comes as a landmark update to the 28-year-old Law 1016/97, signaling the government’s commitment to modernising the framework for gambling regulation.

One of the key objectives of Law 7438 is to eliminate monopolies in the gambling sector, fostering a more competitive and equitable environment.

By allowing new types of games to enter the market under regulated conditions, the legislation ensures a level playing field for operators while safeguarding the interests of users.

This move not only encourages innovation within the industry but also aligns Paraguay’s regulatory framework with international best practices.

The law’s impact extends beyond operational changes, introducing measures to protect the public, particularly minors, from the potential harms of unregulated gambling.

Enhanced supervision and stringent penalties aim to deter illegal operators while providing a secure environment for legitimate activities.

By modernising its approach, the government seeks to strike a balance between industry growth and social responsibility.

Law 7438 also positions Paraguay to leverage the economic benefits of a well-regulated gambling industry. By ensuring transparency and fostering competition, the DNIT-supervised Conajzar aims to attract reputable operators and generate additional revenue for the state.

The government envisions a professional, stable, and solvent regulatory body capable of managing the complexities of contemporary gambling markets.

It added that, with the backing of DNIT’s resources and a clear focus on accountability, the new law equips Conajzar to tackle longstanding issues while adapting to the digital age.

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