Apoja welcomes new decree aimed at combating illegal gambling in Paraguay

The Paraguayan Association of Gambling Operators (Apoja) has expressed strong support for the implementation of Decree No. 3846, which regulates Law No. 7438 and updates the country's legal framework for gambling after nearly three decades. The decree, signed by President Santiago Peña Palacios on May 7, 2025, provides Paraguay's 263 municipalities with a 30-day deadline to align with the new regulations and submit reports on existing gambling permits.

According to El Nacional, the new decree establishes clear rules for enforcing Law No. 7438/2025, which amends and expands Law No. 1016/1997 governing games of chance in Paraguay. One of its key objectives is to tackle the proliferation of illegal gambling and enhance regulatory oversight.

Apoja President Lorena Rojas described the reform as a “significant step forward” for the sector, emphasizing that it modernizes a previously outdated legal structure. “Now, all municipalities must report to the Directorate General of Gambling about the permits they’ve granted, specifying the types of authorized games and the fees collected,” she said.

The reform also includes a major institutional shift: the National Gambling Commission (Conajzar) has been replaced by the newly created Directorate General of Gambling, which now operates under the National Directorate of Tax Revenue (DNIT), headed by Óscar Orué. This change is intended to strengthen the state's control and enforcement capacity. The Organization for Paraguayan Intermunicipal Cooperation (Opaci) confirmed that all 263 municipalities must submit detailed compliance reports.

Rojas highlighted that local authorities are responsible for licensing gambling halls, which primarily use slot machines. Under the new rules, these operations must now meet stricter technological standards. “Concessionaires’ systems must be connected online or in real-time with the regulatory authority,” she noted, referencing Article 5 of the decree.

Additionally, all devices and systems must be certified by an inspection body accredited by the National Accreditation Body (ONA), and these certifying entities must not have ties to the gambling industry. Compliance with these requirements is mandatory for operators to function legally.

The decree also introduces sweeping institutional reforms, including the formal abolition of monopolies in games like the quiniela and sports betting. This move, supported by Paraguay’s National Competition Commission (Conacom), aligns with Law No. 4956 on Competition Defense.

“The Directorate General of Gambling, in coordination with the DNIT, is now authorized to confiscate equipment used in illegal betting,” Rojas added.

She also emphasized the economic importance of the gambling industry in Paraguay, calling it a key contributor to national revenue and social funding. Importantly, a portion of gambling tax revenues will now be allocated to the Directorate of Beneficence (Diben) for public healthcare services.

“Cracking down on illegal gambling and formalizing the sector will not only increase government revenue, but also ensure that more resources are available to support the country’s most vulnerable communities,” Rojas concluded.