Latin American markets attract gambling investors as jurisdictions adapt their entertainment regulations to global trends and demand. The first among all was Brazil. Paraguay recently reformed its gambling framework after years of criticism over exclusivity and fragmented oversight. The updated regime matters for B2C brands because it explicitly covers online products, introduces clearer tender logic for national games, and ties oversight to the country’s tax authority.

However, the jurisdiction doesn't offer a single universal licence. Entry requires separate concessions per game category, with conditions defined in tender documents and enforced through state contracts.

Casino Market focuses on approval issues, the legality of products, and a sensible compliance plan. If Paraguay is on your LATAM shortlist, our experts will help you understand what you can offer, how the authorisation model works, and which costs you should expect before you even start product work.

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Legal Basis of Gambling

Paraguay regulates games of chance through a national framework with shared responsibilities between central and local authorities. The key institutional point is that CONAJZAR operates as a deconcentrated body under DNIT (the National Directorate of Tax Revenues), which also collects gaming canons under the current rules.

This structure affects the approval process. National games are awarded through public tenders, and final decisions require executive approval by decree, adding a state-level step beyond regulatory evaluation.

Milestones that matter most when you assess entry risk and future stability:

• 1997. Law No. 1016 established the legal regime for the exploitation of games of chance and created the basis for concession-style control.
• 1999. Decree No. 6206 regulated the 1997 framework and shaped tender mechanics for national activities.
• 2012. Law No. 4716 adjusted parts of the earlier regime and remained relevant in further interpretations.
• 2023. Law No. 7143 created DNIT, which later became the institutional home for CONAJZAR as the model evolved.
• 2025. Law No. 7438 + Decree No. 3846 modernised the regime, expanded the list of authorised games, and explicitly included an online casino.

A separate pressure point came from the rivalry policy. CONACOM publicly issued opinions that pushed for a more competitive approach to the sector, which aligns with the later move away from historical exclusivity.

Retail gambling remains relevant because Paraguay explicitly authorises several venue-based formats at the municipal level, including bingo premises and electronic gaming halls. Local authorities also get a say on the number of authorisations for certain categories, which means land-based expansion can be smoother in one city and slower in another.

Online Gambling

For remote operators, digital casinos are now listed as authorised games that require public tenders. Sports wagering is also treated as a national category. The law here allows up to three concessions for that segment, rather than a single monopoly operator.

This matters for product planning because it turns the online casino into a category that can be tendered, monitored, and audited using the same state logic as other national games. It also signals that Paraguay wants the digital vertical inside the formal economy rather than a grey zone.

The law uses a closed list for national games. Operators should work only within these listed categories.

What is open for investors:

• online casino;
• sports betting;
• Quiniela (local lottery game);
• other tendered national formats (lotto-type products, sweepstakes, and bingo variants).

Paraguay’s implementing rules emphasise technical conformity and monitoring. Decree No. 3846 describes requirements around systems and equipment that must meet the authority’s technical conditions, pass a homologation step, and support connectivity obligations for control purposes.

This is where B2B vendors show up in this B2C-first jurisdiction. Platforms, RNG tooling, and monitoring layers may need certification or validation through accredited channels, including bodies linked to national accreditation structures referenced in the decree.

Costs and Taxes

Paraguay does not operate on a universal fixed licence fee model that applies to every brand the same way. A national concession is normally shaped by tender conditions, then priced through a mix of up-front participation costs and ongoing canons defined in the contract.

Core Сost Сomponents

Before you worry about marketing spend, plan for the state-facing line items that usually appear around tenders and contracts.

Key cost buckets:

• tender participation rights (a paid step in some processes);
• ongoing canon payments (set as a percentage and/or a minimum guaranteed amount);
• bid security and performance guarantees;
• audit and compliance costs (linked to monitoring and reporting expectations).

A concrete example exists for national sports betting under the prior model. The decree approving the 2022 tender award set a monthly canon equal to 22% of net win, plus a minimum guaranteed amount of $150,000 per month, with annual adjustment mechanisms.

Even if the new regime becomes more competitive, this older structure remains useful as a pricing signal. It shows that Paraguay can combine percentage-based extraction with hard minimums, which directly affects cash flow modelling.

Tender Document Fees

Publicly visible tender-related figures also appear in official responses and industry reporting.

Two notable reference points:

• The cost to purchase tender documents for a sports betting process is around $9,000.
• A participation-related payment in a Quiniela tender is set at $15,000.

Both numbers are examples of entry friction. Each tender can set its own payment logic, and the binding terms always come from the call documents and the final contract.

Where the Canon Money Goes

Paraguay’s rules also outline distribution mechanics for funds after DNIT collects them. The law references a 0.7% deduction, then allocates the remainder across public beneficiaries depending on the level of the game.

Distribution for national-level activities:

• 30% to municipal governments;
• 30% to departmental governments;
• 30% to the Dirección de Beneficencia y Ayuda Social (DIBEN);
• 10% to the national treasury.

That structure is one reason Paraguay’s gaming policy is often framed as a public-benefit revenue channel rather than a purely commercial tax stream. The practical takeaway is that reporting, audits, and collection discipline matter because multiple public recipients sit downstream.

General Tax

In addition to canons, licensed businesses still face standard obligations. Public tax materials and professional summaries commonly describe 10% as the general VAT rate and also refer to 10% as the main business income tax in Paraguay.

How to Get a Gambling Licence

For national online products, operators must win the tender, then execute the contract. That is different from jurisdictions where a regulator grants a standard operator licence after a checklist review.

National-level categories are tendered (sports betting, online casino, lotteries, and other listed games), while several local formats are authorised at the municipal level. The process is heavily document-driven, so structured preparation beats improvisation.

A practical sequence:

1. Track tender announcements and scope via the authority’s channels, then confirm the exact category you target (sports betting, online casino, or another listed game).
2. Purchase and review the tender package where required, since pricing, minimums, and technical obligations are often defined there rather than in the law itself.
3. Prepare a bid dossier that covers legal identity, funding, operational plan, responsible gambling measures, and the proposed technical stack.
4. Arrange bid security and guarantees in the formats required by the call documents, then submit within the published deadlines.
5. Undergo evaluation and adjudication by the authority, with the understanding that the final award stage requires Executive approval through a decree.
6. Sign the concession contract and complete technical certification, including any connectivity controls required for monitoring.
7. Launch under audit-ready conditions, since the regime allows for external check-up tools tied to canon verification.

If your strategy includes retail presence, remember that municipal authorisations cover specific venue-based formats such as bingo locations and electronic gaming halls. The law also states that each authorising authority can regulate the number of permits within its scope.

Paraguay explicitly allows casino concessions in Asunción and across all departments, and it also ties multi-platform possibilities to a population threshold of 250,000+ inhabitants. The maximum term referenced for casino concessions can reach 20 years, linked to investment criteria.

Opportunities and Challenges

Paraguay’s 2025 reform created real room for new entrants, but it did not remove the practical complexity of a tender-driven regime. Operators who approach it as a procurement-and-compliance project tend to do better than teams that treat it as a simple paperwork exercise.

Possibilities

Beyond legal online casinos, the regulated market is now easier to justify to investors and payment partners. This is all thanks to the product list in black-and-white legal text.

The most meaningful entry positives:

1. Online gaming is explicitly authorised, which reduces legal ambiguity for regulated B2C launches.
2. Sports betting moved toward multi-operator capacity, as the law allows up to three concessions rather than a single exclusive slot.
3. Canon distribution is transparent, which helps explain the policy logic to stakeholders and can support reputational positioning.
4. Longer venue concessions are possible, since casino terms can reach 20 years when investment criteria apply.
5. Technical conformity rules are spelled out, which can reduce surprise requirements once you start integration work.
6. Rivalry policy backing exists, since CONACOM opinions framed a more pro-competitive direction for the sector.

Issues

The main challenges are operational. Tender requirements are strict, and contract costs are high even before marketing expenses.

The most common friction points:

1. Entry happens through tenders, so timing depends on public calls rather than a continuous application window.
2. State approval adds an extra step because awards require executive confirmation through a decree.
3. Canon terms can include minimum guarantees, and the sports betting example shows a floor of $150,000 per month in prior awards.
4. Compliance is tech-heavy, since certification expectations can affect both platform and supplier selection.
5. Local rules vary for venue formats because municipalities can control authorisation volumes inside their jurisdictions.
6. Tender economics are not standardised, so budgets must remain flexible until the call documentation is in hand.

The Main Things about Paraguay Gambling Licences

The jurisdiction now offers clearer regulation for online casinos and betting, but uses a concession system rather than traditional licensing. The best results usually come from teams that prepare for procurement rules, technical oversight, and audit-ready reporting.

Key aspects about gambling in Paraguay:

• The legal framework explicitly lists online casinos and treats them as a tendered national category.
• Sports betting and Quiniela can move toward up to three concessions, which supports a more competitive environment.
• Awards for national games require executive approval by decree, so timelines include a state-level sign-off stage.
• Ongoing payments can be heavy, and a prior sports betting award used 22% of net win plus a $150,000 monthly minimum.
• Canon distribution is detailed in law, including the 0.7% DNIT deduction and public-benefit allocation logic.

If you want to explore Paraguay as a launch destination, Casino Market can support your entry preparation with platform selection, compliance-ready product development, and practical recommendations for the tender-driven jurisdiction.

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James Burton The Casino Market partner, the owner of the gambling establishments’ network

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