Basic Law: Ley N ° 1016/1997 (regulation of gambling) - Paraguay

Full article

1) What is Ley N ° 1016/1997 and why is it the "skeleton" of regulation

Ley N° 1. 016 "Que establece el Régimen Jurídico para la Explotación de los Juegos de Suerte o de Azar" - a fundamental law defining what gambling can be carried out in Paraguay, under what conditions and under whose supervision. The document introduces the classification of games, sets general operating rules and relies on a model of permits/concessions under state control. The official text is available from the national regulatory bank BACN.

2) List of permitted games by law (Art. 3)

• casino games (roulette, punto y banca, dice, blackjack, card and electronic games), lotteries (deferred and instant), other types listed in Title II (including, in separate by-laws, sports bets, etc.). The language and examples are contained in the congressional materials on Ley 1016.

3) Who regulates: CONAJZAR

The implementation of the law and supervision is carried out by the National Commission on Gambling - CONAJZAR (under the auspices of the Ministry of Economy and Finance). The official "Marco Jurídico" page contains the current regulations and regulations of the commission, including recent decrees to protect minors.

4) How the tolerance regime works: regulation and concessions

The practical implementation of Ley 1016 is detailed by Presidential Decree No. 6206/1999, which regulates the operation of games: from the conditions of the competition/concession to operational control and reporting. This is a basic "technical" document for the market.

In practice, key verticals are launched through contests and CONAJZAR resolutions. For example, sports bets were transferred by concession to a private operator based on the results of the evaluation of proposals - an indicative case in 2022.

5) Tax and fiscal provisions: deductions from prizes

Although Ley 1016 sets the general legal framework, the taxation of prizes has been modernly streamlined as part of the tax reform Ley 6380/2019 and Decree No. 4661/2020: mandatory retention (withholding) for IRP from cash prizes in gambling is established. DNIT profile clarifications confirm a retention rate of 8% on cash winnings.

6) Important updates after 1997

Juvenile protection and slot machines outside casinos. In 2022, a special law Ley 6903/2022 was passed, aimed at protecting children and adolescents from the influence of slot machines outside licensed halls and casinos; in 2023, regulatory Decree No. 938/2023 was adopted. These norms have tightened the requirements for the placement and control of slots "on the periphery" (shops, bars, etc.).

Fresh 2025 amendments. In October 2025, Ley 7438/2025 is published, which modifies and expands Ley 1016/1997. The amendments update the authority of CONAJZAR and modern regulatory mechanisms (including authorization/regulation procedures for individual verticals) - this is an important point for all current and potential operators. It is recommended to check the licensing and compliance conditions with the editorial office after 7438/2025.

7) What it means for operators and investors

1. Mandatory concession/license model. Market entry is possible through procedures defined by CONAJZAR and by-laws to Ley 1016 (and its amendments).

2. Fiscal discipline. Cash prize payments are accompanied by an IRP deduction at a rate of 8% - it is important to build a correct statement of documents and reporting in accordance with Decree No. 4661/2020 and DNIT clarifications.

3. Responsible play and equipment placement. After Ley 6903/2022, any "gray" scenarios with the placement of slot machines outside the permitted locations are prohibited; control has become stricter.

4. Follow the revision of the law. The 2025 amendments (Ley 7438/2025) mean a reassembly of part of the rules: authorization procedures, distribution of powers and terms may differ from the "1999-2015 classics." Check the current requirements in BACN/MEF.

8) Key primary sources and where to watch updates

Text Ley 1016/1997 - BACN (official base of laws of Paraguay).

Decree No. 6206/1999 (Ley 1016 regulation) - base of regulations (Base Legal).

Ley 6903/2022 and Decree No. 938/2023 - protection of minors from the influence of slot machines; MEF portal.

Ley 7438/2025 - new amendments to Ley 1016 (October 2025).

Taxes on prizes - DNIT/MEF and Decree No. 4661/2020.

Concession practice - CONAJZAR resolutions (example: sports betting).

Ley N ° 1016/1997 remains the framework of the entire gambling system of Paraguay, but you need to focus on the current edition, taking into account Ley 7438/2025, as well as by-laws and resolutions of CONAJZAR. To start the project, check: (a) the list of allowed verticals and admission regime, (b) fiscal deductions from prizes, (c) requirements for responsible gambling and protection of minors. This will save you from regulatory risks and allow you to correctly plan investments and operational processes.