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Is Gambling Legal in Paraguay?

Regulated
Gambling is regulated under a new 2025 law that ends state monopolies, liberalizes the market, and strengthens oversight and enforcement.
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    Key Information Highlights Legislation Timeline Requirements Sources

    Key Information

    Last Update 2025
    Regulatory Authority National Gambling Commission (Conajzar) under the National Directorate of Tax Revenues (DNIT)
    License Cost Varies

    Regulation by Activity Type

    Casinos Regulated
    Online Casinos Regulated
    Betting Regulated
    Online Betting Regulated
    Lotteries Regulated
    Poker Regulated

    Highlights

    • Law 7438, enacted in January 2025, ended Paraguay’s long-standing gambling monopolies and liberalized the market.
    • The National Gambling Commission (Conajzar) now operates under the National Directorate of Tax Revenues (DNIT) for enhanced oversight.
    • Licensing for lotteries and sports betting is now open to three operators each, replacing the previous single-operator system.
    • Conajzar has launched a digital portal for license applications, compliance reporting, and maintains a national registry of gambling machines.
    • The reforms grant Conajzar expanded authority, including 800 inspectors and new powers to block illegal online gambling and seize illicit equipment.
    • The new framework is designed to increase competition, attract investment, and boost state tax revenues from gambling activities.
    • Legislation modernizes oversight, with an emphasis on transparency, fiscal coordination, and combating illegal gambling operations.
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      Legislation

      Primary Legislation

      The core legal framework governing gambling in Paraguay is established by Law No. 1016/1997, known as the "Law on Games of Chance." This foundational law has recently been significantly amended and expanded by Law No. 7438, which was signed into effect in January 2025. The updated legislation modernizes Paraguay's gambling sector by dismantling long-standing monopolies, introducing competitive market principles, and strengthening regulatory oversight. The reforms specifically address the regulation of all forms of games of chance, including lotteries, sports betting, and other gambling activities, ensuring that the legal structure is aligned with technological and economic changes in the industry. Law No. 7438 modifies and expands the scope of Law No. 1016/1997 by:
      • Eliminating exclusive monopolies in key gambling sectors, particularly lotteries and sports betting
      • Establishing a legal basis for multiple operators to be licensed in each sector
      • Providing enhanced authority for regulatory bodies to supervise, control, and enforce compliance across all gambling activities
      • Introducing modern provisions to address both land-based and online gambling operations

      Regulatory Authority

      The principal regulatory body for gambling in Paraguay is the National Gambling Commission (Comisión Nacional de Juegos de Azar, Conajzar). As of 2025, Conajzar has undergone significant restructuring and now operates under the direct authority of the National Directorate of Tax Revenues (Dirección Nacional de Ingresos Tributarios, DNIT). This institutional shift is designed to enhance fiscal oversight, operational transparency, and regulatory enforcement across the gambling sector.
      • Conajzar is responsible for the supervision, regulation, and control of all gambling activities in Paraguay
      • The commission is empowered to oversee compliance, investigate illegal gambling, and implement enforcement actions, including the seizure of unauthorized equipment and blocking of illicit online platforms
      • Conajzar now reports directly to DNIT, streamlining coordination on fiscal matters and regulatory policy
      • The regulatory authority is tasked with maintaining a comprehensive registry of authorized gambling operators and equipment

      License Types

      Types of Gambling Licenses in Paraguay

      • Lottery Licenses: As of 2025, up to three licenses are available for operating lotteries (quinielas). This marks a shift from the previous monopoly system, opening the sector to multiple operators.
      • Sports Betting Licenses: The market now allows up to three licensed operators for sports betting, replacing the former single-operator model.
      • Casino and Other Games of Chance Licenses: While specific numbers are not detailed in public sources, the reformed system enables the licensing of multiple operators for casinos, bingo, and other games of chance.
      • Slot Machine and Gambling Machine Licenses: Operators must register all gambling machines in a comprehensive national registry, with licensing required for both operation and location of devices.
      • Online Gambling Licenses: The regulatory framework is being updated to include licensing for online gambling platforms, with a focus on blocking unauthorized sites and ensuring compliance.

      Application Process for Gambling Licenses

      • Regulatory Authority: The National Gambling Commission (Conajzar), now under the National Directorate of Tax Revenues (DNIT), is responsible for issuing and managing all gambling licenses.
      • Digital Portal: As of 2025, Conajzar has launched a digital portal where operators can submit license applications, compliance reports, and manage regulatory obligations.
      • Public Tender: Licenses for lotteries and sports betting are awarded through a public tender process. The government announces calls for applications, and interested parties submit proposals for evaluation.
      • Documentation Requirements: Applicants must provide detailed information on company structure, financial capacity, technical systems, responsible gambling measures, and anti-money laundering controls.
      • Background Checks: All applicants and key personnel undergo rigorous background and suitability checks to ensure integrity and compliance.
      • Evaluation and Award: Conajzar evaluates applications based on technical, financial, and operational criteria. Licenses are awarded to the highest-scoring applicants within the set limit for each sector.

      Duration, Renewal, and Eligibility

      • License Duration: Licenses are typically granted for a multi-year period, with the exact duration specified in the tender documentation (commonly between 5 and 10 years, depending on the activity).
      • Renewal Conditions: License renewal is subject to continued compliance with regulatory requirements, submission of updated documentation, and payment of renewal fees. Operators must demonstrate ongoing financial stability and operational integrity.
      • Eligibility: Both domestic and foreign companies can apply, provided they meet the legal, financial, and technical criteria established by Conajzar and DNIT.

      Licensing Costs, Fees, and Financial Requirements

      • Application Fees: Applicants must pay a non-refundable application fee when submitting their license request. The fee amount varies by license type and is published in each public tender announcement.
      • License Fees: Successful applicants are required to pay an initial licensing fee upon award. Ongoing annual fees or revenue-based contributions may also apply, depending on the license category.
      • Financial Guarantees: Operators may be required to provide financial guarantees or bonds to ensure compliance with regulatory and fiscal obligations.
      • Transparency: All fees, guarantees, and financial requirements are set forth in the public tender documents and official Conajzar publications.

      Key Requirements for Obtaining and Maintaining a License

      • Compliance with Technical Standards: Operators must implement approved gaming systems, ensure fair play, and maintain secure data management practices.
      • Responsible Gambling Measures: Licensees are required to adopt policies and tools to prevent problem gambling, including self-exclusion options and customer support mechanisms.
      • Anti-Money Laundering (AML): Strict AML protocols must be in place, with regular reporting to authorities and cooperation in investigations.
      • Regular Reporting: Licensed operators must submit periodic compliance, financial, and operational reports through the Conajzar digital portal.
      • Inspections and Audits: Operators are subject to regular inspections and audits by Conajzar and DNIT’s expanded team of inspectors.
      • Machine Registration: All gambling machines must be registered in the national registry, with updated information on location, ownership, and technical specifications.
      • Continuous Compliance: Failure to meet regulatory standards can result in fines, suspension, or revocation of the license.

      Summary Table: Paraguay Gambling Licensing System (2025)

      License Type Number Available Application Process Duration Key Costs
      Lottery (Quinielas) Up to 3 Public tender via digital portal 5-10 years Application & license fees, guarantees
      Sports Betting Up to 3 Public tender via digital portal 5-10 years Application & license fees, guarantees
      Casino Multiple Public tender/Direct application 5-10 years Application & license fees, guarantees
      Gambling Machines Unlimited (with registration) Registration & licensing Annual renewal Registration & annual fees
      Online Gambling Multiple (pending detailed regulation) Digital application To be defined Application & license fees

      Gambling Tax

      Tax Rates for Gambling Operators in Paraguay

      As of early 2025, Paraguay has enacted significant reforms to its gambling sector, with a focus on modernizing tax oversight and increasing state revenue. The new regulatory framework, established by Law 7438, places gambling taxation under the authority of the National Directorate of Tax Revenues (DNIT), with the National Gambling Commission (Conajzar) handling operational compliance. While specific tax rates for each gambling vertical (such as casinos, lotteries, sports betting, and gaming machines) under the new law are still being finalized in regulatory decrees, the following principles and anticipated structures are in place:
      • Gambling operators are taxed on their gross gaming revenue (GGR), which is the difference between the total amount wagered and the winnings paid out to players.
      • Different verticals (casinos, sports betting, lotteries, gaming machines) may be subject to distinct tax rates, as is typical in Latin American regulatory models, but the precise percentages are pending the official regulatory decree expected in 2025.
      Type of Gambling Operation Tax Basis Anticipated Tax Rate (2025 Reform)
      Casinos Gross Gaming Revenue (GGR) To be set by regulatory decree (historically 20-30%)
      Sports Betting Gross Gaming Revenue (GGR) To be set by regulatory decree (historically 15-20%)
      Lotteries Gross Gaming Revenue (GGR) To be set by regulatory decree (historically 10-15%)
      Gaming Machines Gross Gaming Revenue (GGR) To be set by regulatory decree

      Tax Reporting and Payment Procedures

      • Operators are required to report their GGR and submit detailed compliance reports through a new digital portal managed by Conajzar and DNIT.
      • Tax payments are to be made directly to the DNIT, with payment frequency and deadlines to be specified in the forthcoming regulatory decree. Historically, payments were made monthly or quarterly, and this structure is expected to continue.
      • Operators must maintain transparent accounting records and are subject to audits by DNIT-appointed inspectors to ensure accurate tax declarations.
      • Non-compliance with tax obligations can result in penalties, license suspension, or revocation.

      Tax Incentives, Exemptions, and Special Provisions

      • The 2025 reforms are designed to encourage market entry and investment by potentially offering temporary tax incentives or reduced rates for new operators, especially in newly liberalized sectors such as sports betting and lotteries.
      • No broad exemptions from gambling taxes are provided, but operators may benefit from deductions for promotional expenses or investments in responsible gambling initiatives, subject to DNIT approval.
      • Special provisions may apply to operators who invest in technological infrastructure or contribute to social programs, as outlined in the regulatory decree.
      The full details of tax rates and procedures will be codified in the regulatory decree expected later in 2025. Operators should monitor DNIT and Conajzar communications for official updates on finalized tax obligations.

      Prohibited Individuals

      Age Restrictions and Identification Requirements

      • The minimum legal age for participating in any form of gambling in Paraguay is 18 years old. Gambling operators are required to verify the age and identity of all players to ensure compliance with this restriction.
      • Operators must implement robust identification checks, including requesting official identification documents, to prevent minors from accessing gambling services both in land-based venues and online platforms.

      Prohibited Activities and Game Restrictions

      • Unauthorized gambling activities are strictly prohibited. Only games and betting activities explicitly licensed and regulated by the National Gambling Commission (Conajzar) are permitted.
      • There is a strong focus on combating illegal gambling, with active measures to block access to unlicensed online gambling platforms and seize equipment involved in illicit operations.
      • Specific types of gambling, such as unlicensed slot machines and unauthorized betting shops, are subject to enforcement actions and removal.
      • The law restricts the number of licenses for certain sectors, such as lotteries and sports betting, to a limited number of operators, thereby prohibiting any activity outside those authorized channels.

      Advertising and Marketing Limitations

      • Advertising of gambling products and services is subject to strict regulation. Operators must ensure that all promotional materials do not target minors or vulnerable individuals.
      • Marketing communications must include clear information about age restrictions and responsible gambling resources.
      • Advertising is prohibited in media or locations primarily directed at minors, and any misleading or deceptive promotional practices are forbidden.
      • Operators are required to avoid glamorizing gambling or presenting it as a solution to financial or personal problems.

      Responsible Gambling Requirements and Player Protection Measures

      • Operators are obliged to provide responsible gambling information and resources, including access to support for problem gambling and self-exclusion options for players.
      • Mandatory display of responsible gambling messages and helpline information in all gambling venues and on online platforms.
      • Systems must be in place to monitor player behavior and intervene in cases of suspected problem gambling, including offering self-exclusion and deposit limit tools.
      • Data protection and privacy of player information are required, ensuring that personal and financial details are securely managed.

      Geographic and Location Restrictions

      • Land-based gambling venues are subject to geographic restrictions, with licenses specifying permitted locations and prohibiting operations in unauthorized areas.
      • Gambling establishments cannot be located near schools, religious institutions, or other areas frequented primarily by minors.
      • Online gambling operators must implement geo-blocking measures to prevent access from jurisdictions where gambling is not permitted.
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        Timeline

        Year/Date Event
        1997 Law No. 1016/1997 is enacted, establishing the first comprehensive legal framework for gambling regulation in Paraguay and creating the National Gambling Commission (Conajzar) as the main regulatory authority.
        December 17, 2024 The Chamber of Deputies approves a bill to end Paraguay’s gambling monopoly, amending Law No. 1016/1997 and paving the way for market liberalization and regulatory modernization.
        January 6, 2025 President Santiago Peña signs Law 7438, officially enacting sweeping reforms to Paraguay’s gambling laws, including the dismantling of monopolies and the introduction of a competitive licensing system for lotteries and sports betting.
        February 17, 2025 Implementation of Law 7438 begins, with the integration of Conajzar into the National Directorate of Tax Revenues (DNIT) to enhance regulatory oversight and tax collection.
        March 2025 Conajzar launches a digital portal for license applications and operator compliance, and announces the creation of a comprehensive registry of authorized gambling machines, expected to be fully operational by mid-2025.

        Requirements

        Software Certification and Technical Standards

        • All gambling software used by licensed operators must be certified by recognized independent testing laboratories to ensure fairness, randomness, and compliance with regulatory technical standards.
        • Operators are required to implement robust technical systems that guarantee the integrity and transparency of gaming operations, including secure transaction processing and game outcome verification mechanisms.
        • Technical systems must support real-time monitoring by the regulatory authority (Conajzar), allowing for continuous oversight of gaming activities and system performance.
        • Operators must ensure system availability and business continuity through disaster recovery plans and regular backup procedures.

        Data Protection, Privacy Measures, and Server Location

        • Operators are mandated to implement comprehensive data protection measures, including encryption of sensitive customer and transactional data, both in transit and at rest.
        • Strict privacy protocols must be in place to prevent unauthorized access, disclosure, or misuse of personal information.
        • All servers hosting gambling platforms and customer data must be physically located within Paraguay or in jurisdictions approved by the regulatory authority, ensuring compliance with local data sovereignty requirements.
        • Operators must provide secure, auditable logs of data access and processing activities for regulatory review.

        Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

        • Operators are required to implement robust AML programs, including automated transaction monitoring systems to detect and report suspicious activities.
        • Comprehensive KYC procedures must be in place to verify the identity, age, and source of funds of all customers before allowing participation in gambling activities.
        • Operators must maintain updated customer profiles and conduct ongoing due diligence, especially for high-risk or high-value transactions.
        • All AML and KYC processes must be documented and available for inspection by Conajzar and relevant financial authorities.

        Financial Reporting, Auditing Standards, and Record-Keeping

        • Operators are obligated to maintain accurate, real-time financial records of all transactions, player balances, and payouts.
        • Regular submission of financial and operational reports to Conajzar is required, using secure digital channels specified by the regulator.
        • Annual independent audits of financial statements and gaming systems must be conducted by certified public accountants or approved audit firms.
        • Operators must retain all records related to gaming operations, customer transactions, and compliance activities for a minimum period specified by the regulator, typically no less than five years.

        Technical Implementation Requirements for Responsible Gambling Tools

        • Operators must integrate technical tools that enable players to set deposit, loss, and time limits on their gambling activities.
        • Self-exclusion mechanisms must be available, allowing players to voluntarily restrict access to their accounts for specified periods.
        • Systems must provide automated alerts and pop-up messages to inform players about responsible gambling options and risks associated with excessive play.
        • Operators are required to implement monitoring tools capable of detecting signs of problematic gambling behavior and triggering appropriate interventions or referrals to support services.

        Sources

        Primary Regulatory Authorities

        Legislation Resources

        Contact Information

        • National Directorate of Tax Revenues (DNIT): Address: Avda. Mariscal López 3794 c/ República Dominicana, Asunción, Paraguay Phone: +595 21 618 7000 Email: info@dnit.gov.py
        • National Gambling Commission (Conajzar): Address: Avda. Eusebio Ayala 4546, Asunción, Paraguay Phone: +595 21 520 053 Email: info@conajzar.gov.py
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          Important Information Notice

          Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.

          Last updated: 21 April 2025