The government of Paraguay views a “new horizon for gambling” benefitting the state economy and public interests reports Damián Martinez of SBC Noticias
Following intense deliberations, Paraguay’s Tax Treasury has shifted opinion to favour sports betting ending its exclusivity and opening to competition in 2026.
That shift is now being openly examined by the National Directorate of Tax Revenue (DNIT), which is assessing whether to launch a competitive tender for sports betting licences next year.
The move would mark a further step in the Peña administration’s attempt to impose order, legality and economic logic on a sector long characterised by exclusivity and regulatory improvisation.
As reported by SBC Noticias: Oscar Orué, Director of DNIT, has confirmed that the authority is analysing whether the current legal framework permits a bidding process to begin in 2026.
Paraguay’s new gambling law—approved under President Santiago Peña’s mandate to establish a legal regime for the exploitation of games of chance—entered into force in January 2025 and authorized two additional sports betting licences.
Yet legality alone is not the decisive factor. The existing sports betting concession, held by Aposta.la, runs until 2028. DNIT must therefore determine whether opening the market mid-cycle would enhance competition and fiscal returns, or risk destabilising an already fragile regulatory environment.
“Our legal department is analysing whether it is possible to hold the bidding process in 2026,” Mr Orué said. “Before setting terms and conditions, we need to determine whether activating the two slots permitted by law is worthwhile.”
Fixing past blunders
This debate reflects a broader recalibration of gambling policy under President Peña and the ruling Colorado Party. Reform formally began with the decision to dismantle monopoly concessions, starting with the Quiniela Nacional — Paraguay’s popular small-draw lottery.
Earlier this year, the government authorised a competitive tender for its operation, opening participation to both domestic and foreign operators.
The National Lottery tender, overseen by DNIT, represents a decisive break with decades of exclusivity. From 2026, up to three operators will be permitted to run the lottery, aligning the sector more closely with constitutional provisions that prohibit monopolies. The current concessionaire will continue operations during the transition period, while bids are evaluated.
Officials have been careful to frame the reform as corrective rather than ideological. The need for an overhaul dates back to a high-profile failure in 2024, when Conajzar—the former gambling authority—launched a tender process without government authorisation.
The episode triggered a political scandal that ultimately saw Conajzar’s leadership disbanded and regulatory authority consolidated under DNIT.
The high-profile fallout exposed deep institutional weaknesses and undermined confidence in the governance of gambling, which President Pena states that he is determined to resolve, favouring the state’s interests.
The mandate sees DNIT take on an expanded role intended to restore credibility, reinforce fiscal oversight and public confidence in Conajzar. Of significance, the Tax Office must reassure investors (whether foreign or domestic) that Paraguay’s gambling market will operate under fair rules with political accountability.
Whether the tender for a sports betting franchise follows an open competition for the lottery by 2028 remains an unresolved directive. Yet Pena and the Colorado Party cite that “Paraguay is no longer simply repairing a damaged system; but cautiously attempting to redesign it.”
As such, ending exclusivity may offer the prospect of higher revenues and greater transparency but only if the transition is governed with the same care as the reform itself, in which Pena and DNIT will choose the final direction to liberalise sports betting in Paraguay.