ASUNCIÓN, PARAGUAY – The Paraguayan National Directorate of Tax Revenue (DNIT) has reached a new turning point in gambling regulation, securing powerful authority to seize illegal gambling devices, including slot machines, and close down related businesses. This development follows the recently enacted Law 7438 and its regulating decree 3846, which expand enforcement powers to the central government agency, DNIT, a power previously limited to municipal authorities.
On June 3rd, Carlos Liseras, former congressman and Executive Director of the Paraguayan Gaming Control Board (Conajzar), chaired a meeting with mayors from Asunción and the Central Department to share the key details of the new regulations. Mayors and representatives from major cities such as Asunción, Lambaré, Itauguá, Limpio, and Nueva Italia attended the session to learn about the increased regulatory强度.
"Previously, only mayors could seize illegal slot machines, but now Conajzar, through DNIT, can directly carry out enforcement and seizure measures," Liseras stated in an interview with Última Hora. He emphasized, "We prioritize the protection of minors above all else, and close cooperation with municipal authorities is essential for this." He also added that the participation of municipalities is crucial during the legal and technical transition process.
Background and Impact of Strengthened Enforcement Authority
This regulatory reinforcement stems from serious concerns over the widespread illegal gambling market in Paraguay and the deepening problem of gambling addiction, particularly among minors. Under previous legislation, the crackdown and punishment of illegal gambling were primarily the responsibility of individual municipal councils, leading to criticism regarding the inconsistency and inefficiency of enforcement. Municipal authorities faced limitations in effectively responding to illegal gambling due to insufficient personnel, funding, and expertise.
However, the new Law 7438 redefines Conajzar's role to address these issues, bringing it under the purview of the DNIT. Liseras explained, "By becoming part of the DNIT, Conajzar can leverage the DNIT's strong enforcement capabilities, unlike before when it depended on the Ministry of Economy." As the national tax agency, DNIT possesses extensive authority and infrastructure specialized in tax collection and financial crime investigation, enabling it to effectively provide the resources and expertise needed for illegal gambling crackdowns.
Through this change, DNIT can now go beyond simple seizure measures, extending its reach to include closing down gambling establishments found to be operating illegally. This is expected to serve as a strong warning against illegal gambling activities and an effective means of enforcing regulatory compliance.
Cooperation with Municipalities and Securing Financial Soundness
Mayors and municipal representatives attending the meeting responded positively to Conajzar and DNIT's new enforcement powers, reaffirming the importance of cooperation in eradicating illegal gambling. Liseras expressed optimism, stating, "Everyone showed a willingness to work towards the same goal," anticipating that cooperation would create synergy.
The new regulations also clarify that municipalities retain the authority to license gambling establishments. This is interpreted as an effort to enhance regulatory efficiency through a division of roles between the central and local governments. As municipalities best understand local conditions, they are expected to play a crucial role in preventing illegal gambling through proper licensing management and ensuring transparency in legitimate gambling businesses.
Furthermore, the meeting discussed the fees (canon) that municipalities currently receive from gambling-related revenue. In accordance with Law 6903/22, fines collected from gambling-related offenses will be used to fund treatment for minors suffering from gambling addiction. This measure establishes an important financial basis for addressing social problems caused by illegal gambling and protecting vulnerable populations, particularly minors. DNIT's strengthened enforcement is also expected to contribute to the stable securing of these funds.
Record-Breaking Collection Performance and Future Outlook
Conajzar Executive Director Liseras also mentioned the agency's financial performance, stating that in May 2025, a record-high 18.715 billion Guaraníes (approximately $2.5 million) was collected in gambling business fees. This represents an 11% increase from April's 16.711 billion Guaraníes and an additional 4.987 billion Guaraníes, a 36% increase compared to the same month last year.
This record-breaking collection performance demonstrates the scale and potential of Paraguay's gambling market, while also indicating that Conajzar and DNIT's strengthened regulatory and enforcement efforts are enhancing the transparency of the legitimate gambling market and positively impacting tax revenue growth. A strong crackdown on illegal gambling provides a fairer competitive environment for legal operators, which is expected to promote the healthy development of the entire gambling industry in the long run.
DNIT's acquisition of slot machine enforcement authority is a clear signal that the Paraguayan government has a stronger commitment to the fight against illegal gambling. Close cooperation between Conajzar, DNIT, and local municipalities in the future will be crucial to see if illegal gambling in Paraguay can be eradicated and if vulnerable populations, including minors, can be better protected from the harms of gambling.
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