Online casinos operate in a legal gray area in Paraguay, as there are currently no specific laws addressing the legality or illegality of online gambling. Historically, Paraguay has never enacted legislation specifically targeting online gambling, which has led to uncertainty regarding its legal status (1). The Paraguayan government contends that online gambling may constitute a form of offshore banking since funds are held in foreign accounts, potentially making it illegal under existing anti-offshore banking laws. However, this interpretation has never been tested in court, leaving the actual legal status unclear. The National Gaming Commission (CONAJZAR) serves as Paraguay's gambling regulator but has traditionally focused on land-based gaming operations.
In January 2025, Paraguay enacted landmark legislation with Law 7438, which significantly reformed the country's gambling regulatory framework. This transformative law transferred oversight of CONAJZAR from the Ministry of Economy and Finance to the National Directorate of Tax Revenues (DNIT), aiming to modernize gambling regulation and eliminate existing monopolies (2). The legislation introduces new provisions allowing for the regulation of online gambling and betting to keep pace with technological advancements. Under the new framework, CONAJZAR has been granted enhanced powers to combat illegal gambling, including the ability to block unauthorized online gambling platforms and coordinate with national computing centers to shut down unlicensed operations.
"We now have the capability to intervene in clandestine online casinos and other unauthorized gambling platforms across the country."
While the regulatory landscape is evolving, Paraguayan players currently access offshore online casinos without government interference, as there have been no reported cases of authorities prosecuting players for participating in online gambling (1). However, players face practical challenges due to Paraguay's anti-offshore banking laws, which can limit banking options for online gambling transactions. The new Law 7438 establishes a framework for licensing private operators in the gambling market, moving away from the previous monopolistic tender system. The legislation aims to create a more competitive environment while ensuring proper oversight and protection for consumers, particularly minors. As Paraguay modernizes its gambling laws, the country is expected to provide clearer guidelines for online casino operations and player protections in the near future.
Source:
https://online.worldcasinodirectory.com/paraguay
https://next.io/news/regulation/paraguay-approves-gambling-regulatory-reforms/
Last updated: 24-07-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
