Paraguay, a landlocked country in central South America, has been developing its gambling industry for decades. to the south is Argentina, east is Brazil, and northwest is Bolivia; it occupies an area of 406,800 square kilometers and its capital is Asunción. This article aims at analyzing the gambling laws of betting sites in Paraguay and sports betting and outline the applicable laws in the country in addition to the licensing requirements, taxes, and permissible activities.
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Regulatory Framework
The legal requirements within the gaming sector in Paraguay are overseen by the National Games of Chance Commission (CONAJZAR). This authority is charged with the responsibility of overseeing and regulating operations of various gambling related activities, licensing, auditing and assessing operations. Although there are no exclusive laws against online gambling in Peru, CONAJZAR has also adopted a hard-line approach toward what it considers to be unlawful Internet gambling, which it sees as a means through which money launderers might operate.
History of Gambling Legislation
The history of gambling in Paraguay is marked by several key legislative milestones:
- 1943: The first casino is established in Paraguay which lead to a legalizing of gambling.
- 1954: It was then founded the Hipódromo de Asunción which was owned by the Jockey Club del Paraguay.
- 1997 (Law No. 10161): It introduced a more structured legal environment on games of chance.
- 2015-2018: The trend towards a legalisation of online gambling has started gradually with the legalisation of online lottery in 2015 only.
- 2017 (Decreto Conajzar 73072): Introducing online gambling laws that enabled online casinos to operate legally.
- 2018: Dependence on organised sports; Legalization of online sports betting.
CONAJZAR is the body that regulates both, traditional gambling licenses as well as web-based gambling licenses. Physical casino licenses are the only ones that are competent to apply for online gambling licenses.
Recent Legislative Updates
- 2022: In response to the emerging menace of slot machines, Paraguay’s President Mario Abdo Benitez was forced to sign Law-6903 known in Spanish as the ‘Ley de Tragamonedas’ ‘which means that the machines cannot be placed anywhere but in gaming establishments.
- January 2023: The National Competition Commission (Conacom) has proposed legislative change regarding Law 1,016/97 to curtail monopolies and support competition in the gambling sector.
Gambling Law and Regulation in Paraguay – 5 Things to Know
Licensing and Fees of Betting Sites in Paraguay
Casino Licenses
Casino licenses are regulated by CONAJZAR, with the following key points:
- License Duration: Mostly given for 20 year term.
- Investment Requirement: While the initial investment looks less at $ 3 million, projects usually need $ 50-70 million.
- Location Restrictions: It is mandatory for casinos to come with hotels or at least be affiliated to hotels. Currently, the minimum population of a province for it to host casinos is 250,000 and only one casino is permitted for this population size.
- Process: Concessions legal regulation starts with the public tender; the concession contract is then proposed to the chosen applicants.
Slot Halls
- Local Government Permission: Necessary to own slot halls where only gaming machines can be located.
- Proximity Restrictions: If a slot hall is located within 500 meters from an educational institution and a place of worship it shall be closed.
- Ban on Public Spaces: Concerning laws that affect gambling, in 2016 it was unconstitutional for convenience stores and other small businesses to operate slot machines.
Online Gambling Licenses
- Eligibility: Each applicant for online gambling needs to have a license for the physical casino as well.
- Main Legislation: Bolivian legislation on Internet gambling is regulated by Decreto Conajzar 73072 from 2017.
Lottery Licenses
- State Monopoly: It is important to know that the lottery is a state monopoly, and there can only be one licensed operator.
- License Term: It is bonded for a term of 20 years.
- Public Tender: Commences with the issuance of license and then entering into a concession agreement.
Sports Betting Licenses
- State-Controlled: Although sports betting itself is mainly state-owned, licenses are granted to private organizations.
- Monopoly: Currently, the state monopoly in lotteries organizes sports betting with the help of distributors all over the state.
- Online Sports Betting: Legal from the year 2018 but only one company with the license, which dominates till the year 2023.
Taxes and Fees of Betting Sites in Paraguay
- Gambling Tax: A guaranteed eight percent tax on all gambling wins from winnings of over 500,000 guaranis ($70). This tax is also received by operators and not included in the players’ winnings or wins.
- License Fees: The monthly fixed fees depend on the location of the gambling plan and the kind of gambling activity proposed. Amounts vary and are established at the time of licensing.
Prohibited and Permitted Bets
Permitted Bets:
- Casino games
- Online lottery
- Betting machines (in appropriate halls)
- Online casinos
- Online sports betting
Prohibited Bets:
- Public space and other non-casino establishments that display video lottery terminals
- Unauthorized online gambling operations
Paraguayan Gambling: Legislation Timeline
- 1943: First casino opened.
- 1954: Creation of Hipódromo de Asunción.
- 1997: Law No. 10161 introduced.
- 2015: Online lottery legalized.
- 2017: Conajzar passed Decree 73072, approving the regulation and operation of online casinos.
- 2018: Online sports betting becomes legal.
- 2022: Law-6903 ‘Ley de Tragamonedas’ enacted: no slot machines in areas other than casinos.
- January 2023: Regarding that issue, Conacom suggests amendments to Law 1,016/97.
Conclusion
Gambling sector in Paraguay has also grown over the years and there is strong legal foundation to control it. CONAJZAR is a government organization responsible for regulating gambling in the country and the management of the National Lottery as well as monitoring and licensing both the traditional and online gambling establishments. As for the future of gambling in Paraguay, the prognosis is rather cheerful since the modern legislation is focused on limiting monopolistic tendencies and promoting competition.
Any person who wishes to access Paraguay Betting Sites or to engage in Paraguay Sports Betting should ensure he or she is updated on the current Paraguay Betting legalities and licenses. With knowledge of the legal realities, operators and other industry entitles can conduct all their business with confidence and within legal parameters.