Paraguay is set to implement a significant reform in its gambling sector, highlighted by the establishment of an independent regulatory body. On October 12, the Government introduced a bill to Congress that aims to replace the existing National Gambling Commission (Conajzar) with a new organization, the National Directorate of Gambling (Dinajzar). Unlike its predecessor, Dinajzar will operate with its own legal framework and financial independence. The bill is undergoing scrutiny by several Senate committees, which convened on October 26 to evaluate the proposed changes.
Javier Balbuena, a lawyer and former head of Conajzar, indicated that there are two key issues that need resolution: extending the duration of gambling licenses from five years to a potential ten years and clarifying the distribution of gambling revenue between regional and municipal governments. Balbuena commented, "Previously we’ve had partial proposals and temporary solutions. Now Congress is aiming for a complete structural overhaul."
This reform is taking shape after the Ministry of Economy and Finance relinquished oversight of Conajzar less than two years ago, a decision that Balbuena suggests weakened administrative processes without enhancing enforcement or licensing protocols.
Under the proposed governance model, Dinajzar could direct telecommunications and financial companies to block illegal online gambling websites, applications, and payment processors. Senator Luis Pettengill highlighted the limited resources of the regulatory authority, noting that Conajzar currently employs no more than a dozen personnel across the country. Pettengill stated, "We have a major lack of control over gambling involving minors in cities throughout the country."
The new legislation also promises to create additional licensing opportunities for online casinos, bingo halls, and sportsbook operators in Paraguay. Balbuena remarked that the total number of licenses would no longer rely on existing monopolies or temporary frameworks but would instead be based on the technical, financial, and platform criteria set forth by Dinajzar.
Local media indicates that the bill plans for 26 online gambling licenses, with current provisional licenses due to expire by January 2028. The proposed fees include a minimum monthly charge of PYG 12 million (approximately €1,843) along with a 7% share of gross gaming revenue (GGR). While gambling winnings of PYG 500,000 (around €77) or more are subject to an 8% withholding tax, the final tax structure remains to be determined. Additionally, the legislation introduces deposit limits, monitoring of potentially harmful gambling behavior, and a centralized self-exclusion registry.
