Paraguay Proposes New Gambling Regulator to Combat Illegal Operations

Paraguay is moving to replace its National Gambling Commission (Conajzar) with a new, independent National Directorate of Gambling (Dinajzar). The government-backed legislation, submitted to Congress on October 12, aims to establish stronger enforcement powers against unlicensed operators and online gambling sites.

What Happened

Paraguay’s government has submitted legislation to Congress to overhaul its gambling laws, proposing the replacement of Conajzar with Dinajzar. This new entity would operate with enhanced legal status and greater financial and operational independence, according to NEXT.io. The bill is currently undergoing examination by several Senate committees, which held a joint meeting on October 26 to discuss the reforms.

Javier Balbuena, a lawyer and former head of Conajzar, informed NEXT.io that the legislation is “highly likely” to pass due to a developing consensus among lawmakers regarding the necessity for a revamped regulatory structure. Balbuena noted that previous restructuring efforts, including moving Conajzar’s oversight to the National Directorate of Tax Revenue (DNIT) less than two years prior, had not yielded the intended improvements, reportedly weakening administrative processes and failing to effectively address illegal gambling or licensing.

Key Details

• The proposed legislation, submitted to Congress on October 12, aims to replace Conajzar with Dinajzar, an independent regulator with increased autonomy and enforcement capabilities, according to NEXT.io.
• Dinajzar would be authorized to mandate telecommunications companies and financial institutions to block illegal gambling websites, applications, and payment gateways, with penalties including up to five years in prison for illegal operators, as reported by NEXT.io.
• The bill intends to expand licensing periods from five to up to 10 years, and local media reports suggest plans for 26 online gambling licenses, with existing provisional authorizations expiring by January 2028.
• Licensees may be required to pay a minimum monthly fee of PYG 12 million (€1,843) and 7% of Gross Gaming Revenue (GGR), according to local media reports.

Why It Matters

The proposed overhaul represents a significant shift in Paraguay’s approach to gambling regulation, moving towards a more centralized and empowered regulatory body. This initiative aims to address existing deficiencies in enforcement against illegal gambling, which has reportedly been a challenge for Conajzar due to limited resources, with Senator Luis Pettengill noting Conajzar has only 12 officials for national oversight. The establishment of Dinajzar, with its proposed powers to block unauthorized online operations and impose criminal penalties, could lead to a more regulated and secure market environment, potentially expanding the legal online casino, bingo, and sportsbook sectors.

What’s Next

The gambling bill remains in the Senate committee stage, with lawmakers reportedly intending to finalize a more definitive version of the legislation within 15 days. No specific date has been announced for a full parliamentary vote on the proposal. Disagreements within the committees primarily concern the extension of licensing periods and the distribution of gambling revenues among governmental levels, as stated by Javier Balbuena to NEXT.io. The legislation also proposes new protections for players, including deposit limits, monitoring of harmful gambling behavior, and a centralized self-exclusion register, alongside advertising restrictions and a requirement for businesses promoting gambling to register with the regulator.