Paraguay Plans Independent Gambling Regulator Dinajzar

Paraguay is moving towards a major restructuring of its gambling industry, with a government-backed bill proposing the creation of an independent regulatory authority to replace the existing National Gambling Commission (Conajzar).

The government submitted the legislation to Congress on 12 October. Under the proposed changes, Conajzar would be replaced by the National Directorate of Gambling (Dinajzar), an authority with its own legal status and financial independence. The bill is currently being examined by several Senate committees, which held a joint meeting on 26 October to review the planned reforms.

Javier Balbuena, a lawyer and former head of Conajzar, identified two key issues under discussion: increasing gambling licence durations from five to as many as 10 years and establishing how industry revenues should be allocated between regional and municipal authorities.

Balbuena said: “Previously we've had partial proposals and temporary solutions. Now Congress is aiming for a complete structural overhaul.”

Paraguay plans stronger action against illegal gambling

The proposed changes follow the transfer of responsibility for supervising Conajzar away from the Ministry of Economy and Finance less than two years ago. Balbuena argued that the move had weakened administrative procedures without delivering improvements to enforcement or licensing processes.

Under the new framework, Dinajzar could direct telecommunications and financial companies to restrict access to illegal online gambling websites and applications, as well as block associated payment processors.

Senator Luis Pettengill has raised concerns about the regulator's capacity to carry out these responsibilities, noting that Conajzar currently has no more than 12 employees working across different parts of the country.

Pettengill said: “We have a major lack of control over gambling involving minors in cities throughout the country.”

Proposed licensing opportunities for online operators

The legislation could also create new licensing opportunities for companies operating online casinos, bingo platforms and sports betting services in Paraguay.

According to Balbuena, the proposed system would move away from legal monopolies and temporary authorisations, with licence approvals instead determined by technical, financial and platform requirements established by Dinajzar.

Local media reports indicate that the bill envisages 26 online gambling licences. Existing provisional authorisations would expire by January 2028.

The proposed financial conditions include a minimum monthly payment of PYG 12 million (approximately €1,843), alongside a charge equivalent to 7% of gross gaming revenue (GGR). However, Balbuena noted that the final tax arrangements have not yet been confirmed.

Under the current system, gambling winnings of PYG 500,000 (approximately €77) or more are subject to an 8% withholding tax.

The proposed legislation also includes responsible gambling provisions, such as deposit limits, systems for identifying potentially harmful gambling behaviour and the creation of a centralised self-exclusion register.