Paraguay Proposes DINAJZAR to Replace Existing Gambling Regulator

Paraguay.- 15 October 2026 | www.zonadeazar.com The Government of Paraguay has submitted a legislative proposal to the National Congress to establish the National Directorate of Gambling (DINAJZAR), a new regulatory authority that would replace the existing National Gambling Commission (CONAJZAR).

The initiative, promoted by President Santiago Peña and Minister of Economy and Finance Teodora Recalde, seeks to modernise the sector’s institutional framework, strengthen regulatory supervision and introduce additional tools to combat illegal gambling.

The document, dated 12 October 2026, contains 72 articles and proposes changes to licensing, concessions, enforcement powers, technological controls and player protection requirements.

A New Independent Regulatory Authority

One of the proposal’s central elements is the establishment of DINAJZAR as a public-law institution with its own legal personality, administrative and financial autonomy, and independent assets.

The reform seeks to address limitations within the existing institutional structure and provide the regulator with greater operational capacity.

The new authority would be headed by a National Director, appointed and dismissed by presidential decree.

Its responsibilities would include authorising operators, managing concessions, supervising regulated activities and imposing sanctions.

Another Stage in Paraguay’s Regulatory Reform

The proposal represents a further development in Paraguay’s restructuring of gambling regulation.

In January 2025, Law No. 7438 amended the existing framework and transferred CONAJZAR from the Ministry of Economy and Finance to the National Directorate of Tax Revenue (DNIT).

That reform aimed to strengthen oversight, revenue collection and enforcement by drawing on the tax authority’s administrative and technological infrastructure.

The 2026 proposal would establish a separate institution with greater independence and the ability to manage its own resources.

New Rules for Gambling Concessions

The proposed legislation maintains the distinction between nationally regulated gambling activities and those authorised by departmental and municipal governments.

DINAJZAR would oversee several categories, including:

• Land-based casinos.
• Sports betting.
• Online casinos.
• Lottery-style number games.
• Other gambling activities covered by national legislation.

For certain activities, the proposal would require public tender procedures, with concessions lasting up to 10 years and no extensions permitted.

It also establishes mechanisms for authorising new forms of gambling through reasoned regulatory decisions and specific approval procedures.

Stronger Inspection and Enforcement Powers

Strengthening regulatory supervision is one of the reform’s principal objectives.

The proposed authority would have powers to inspect physical gambling venues, digital platforms and operators’ technological systems.

It could also request documentation, verify compliance with operating conditions and investigate suspected breaches.

These measures are intended to strengthen oversight of licensed activities and improve the authorities’ ability to respond to illegal gambling operations.

Sanctions and Illegal Gambling Enforcement

The bill establishes three categories of regulatory infringements:

• Minor.
• Serious.
• Very serious.

Depending on the nature of the breach, sanctions could include warnings, fines, temporary closures, suspension or cancellation of authorisations, and disqualification from operating.

The proposal also introduces precautionary enforcement measures, including the seizure of equipment used for illegal gambling and the blocking of unauthorised digital platforms.

Clandestine gambling operations would be expressly classified as sanctionable conduct, potentially involving criminal liability.

Responsible Gambling and Protection of Minors

The reform includes specific measures designed to strengthen consumer protection.

Principal provisions include:

• Prohibiting minors from accessing gambling services.
• Introducing identity verification requirements.
• Allowing the establishment of self-exclusion systems.
• Restricting advertising aimed at minors.
• Prohibiting promotional messages presenting gambling as a solution to financial difficulties.

These measures aim to incorporate preventive obligations into the regulation and supervision of authorised operators.

Anti-Money Laundering Requirements

DINAJZAR would also oversee gambling operators’ compliance with obligations concerning money laundering and terrorist financing prevention, in coordination with the relevant authorities.

Operators would remain responsible for meeting the applicable financial monitoring requirements.

The proposal seeks to strengthen supervision and information-sharing mechanisms to identify suspicious activities.

These measures form part of a wider objective to improve transparency and traceability across the gambling industry.

Funding the New Regulator

Under the proposed financial arrangements, DINAJZAR would receive 5% of revenue associated with nationally regulated gambling activities, casinos and racecourses to fund its operations.

The bill would maintain the existing distribution arrangements for concession fees among legally designated beneficiaries.

The authority would also be subject to transparency obligations, including publication of institutional information and submission of management reports.

The objective is to provide stable resources for regulation, inspection and administration.

Existing Concessions Would Remain Valid

An important aspect for gambling operators concerns the proposed transitional arrangements.

The legislation establishes that DINAJZAR would succeed CONAJZAR in its rights, obligations and legal relationships.

Under the proposal:

• Existing concessions would remain valid until their scheduled expiry dates.
• Current licences, permits and authorisations would continue to be recognised.
• Pending administrative files would transfer to the new regulator.
• Ongoing proceedings would continue under the new institutional structure.

These provisions are intended to prevent administrative disruption during a potential transfer of regulatory responsibilities.

Next Steps and Impact

The proposal must undergo consideration and approval by Paraguay’s National Congress before becoming law.

Consequently, DINAJZAR has not yet been established, and CONAJZAR continues exercising its responsibilities under the existing legal framework.

If approved, the reform would introduce a gambling regulator with greater institutional independence, expanded inspection powers and additional mechanisms for combating illegal operations.

It could also affect the awarding of future concessions while strengthening player protection and regulatory compliance requirements.

For the gambling industry, the legislative process will be significant because of its potential implications for casinos, sports betting, lottery-style games and online gambling platforms across Paraguay.

Editó: @fonta