Paraguay is embarking on a significant overhaul of its gambling laws, introducing an independent regulator to manage the sector. On October 12, the Government submitted a bill to Congress proposing to replace the National Gambling Commission (Conajzar) with a new entity called the National Directorate of Gambling (Dinajzar). This new body will have its own legal status and financial independence. Currently, the bill is under consideration by various Senate committees, which convened for a joint meeting on October 26 to deliberate on the proposed changes.
Javier Balbuena, an attorney and former head of Conajzar, highlighted two key points of contention: the proposed extension of licensing terms from five years to a maximum of ten years, and the distribution of gambling revenues between regional and municipal governments. He remarked, "Previously we’ve had partial proposals and temporary solutions. Now Congress is aiming for a complete structural overhaul."
The reforms come after the oversight of Conajzar was reassigned from the Ministry of Economy and Finance less than two years ago. Balbuena noted that this shift had weakened administrative processes and failed to enhance enforcement or licensing measures.
Under the proposed framework, Dinajzar would have the authority to direct telecommunications and financial companies to block illegal online gambling sites, applications, and payment processors. Senator Luis Pettengill emphasized that the regulatory authority operates with limited resources, noting that Conajzar currently employs no more than twelve staff members across the nation. He stated, "We have a major lack of control over gambling involving minors in cities throughout the country."
The new bill could create more licensing opportunities for online casino, bingo, and sportsbook operators within Paraguay. Balbuena explained that the total number of licenses will be determined by technical, financial, and platform approval criteria set by Dinajzar, rather than relying on legal monopolies or temporary arrangements.
Local reports suggest the bill foresees the issuance of 26 online gambling licenses, with existing provisional licenses set to expire by January 2028. Proposed fees include a minimum monthly charge of PYG 12 million (approximately €1,843) along with a 7% levy on gross gaming revenue. Additionally, Balbuena noted that the final tax structure is yet to be finalized. Presently, winnings exceeding PYG 500,000 (around €77) incur an 8% withholding tax. The legislation also aims to establish deposit limits, monitor potentially harmful gambling behaviors, and create a centralized self-exclusion register.
