In 2025, a significant reform in Paraguay’s gaming laws expanded the scope of Law No. 1016/1997, which originally governed games of chance. This legislative update aims to enhance control and transparency while aligning regulations with the fast-evolving gaming industry, especially focusing on digital betting channels.
Javier Balbuena, a legal expert and former president of the National Gambling Commission (CONAJZAR), discussed with industry observers the opportunities and challenges introduced by this sweeping change. He emphasized the reform as the most substantial regulatory update in the Paraguayan gaming sector over the past decade. By modernizing a system that had lagged behind technologically and operationally, the law seeks to address existing gaps. However, Balbuena cautioned, “The true measure of this reform’s success will only be visible over time.”
The primary aim of the reform is to rectify clear regulatory deficiencies and ensure consistent licensing and compliance processes. One key aspect is the formal recognition of digital gaming, which had previously been inadequately regulated. Despite these advancements, Balbuena noted that Paraguay is still in the nascent phases of implementing these changes and that it could take a full year before the new framework’s effectiveness is clear. He warned that the complexity of administrative layers might hinder operational efficiency, suggesting that in the short term, the priority should be standardizing processes, while the medium-term focus should be on establishing a “modern, transparent, and sustainable regulatory model.”
A crucial component of the reform involves restructuring CONAJZAR into a decentralized body under the National Directorate of Tax Revenue (DNIT). This change aims to enhance inter-agency coordination and policy alignment, with DNIT taking on a strategic supervisory role. Meanwhile, CONAJZAR remains focused on technical regulation and enforcement. The reform also introduces the General Directorate of Games of Chance, tasked with overseeing control policies, statistical analysis, concession monitoring, and operational coordination. Balbuena stressed that the success of this new structure hinges on avoiding bureaucratic duplication: “The real challenge will lie in ensuring the integrated system doesn’t compromise the regulator’s technical capabilities or its market responsiveness.”
Financially, Paraguay’s gaming sector is experiencing unprecedented growth, with revenues exceeding 177 billion guaranies by October 2025, surpassing previous year’s figures. This surge is largely driven by the expansion of online gambling platforms, particularly in the digital sports betting arena. Innovations such as revamped lottery games and regulated slot machine environments further contribute to this growth trajectory. Additionally, digital bingo and other gaming solutions are becoming increasingly popular.
Looking forward, Balbuena believes the sector’s development hinges on its attractiveness to investors. This potential extends beyond gaming operations to include technological infrastructure and specialized service ecosystems. “Clear rules and legal certainty will invite national and international investment, foster employment, and boost public revenues,” he remarked. Simultaneously, the market must enhance its oversight to combat illegality and money laundering, while also strengthening player protection policies to ensure sustainable growth.
Paraguay’s new regulatory framework is a bold step towards modernization and institutional coherence. However, as Balbuena pointed out, the ultimate success of this reform will depend on effective execution and coordination, balancing oversight with operational agility. As the system matures, the true impact on the country’s ambition to establish a transparent, competitive gaming industry will become evident.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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