Paraguay is a land-locked country in the center of South America. It borders Brazil to the north-east with Argentina to the south and Bolivia to the north-west.
The situation for online gambling in Paraguay is interesting to say the least. Historically, there has never been a law addressing online gambling in any way, shape or form. In that sense, it should be legal through the logic that it has not been made illegal. On the other hand, the government contends that online gambling is a form of offshore banking because your funds are kept in a foreign bank account. They hold the position that this makes it illegal in Paraguay because of their already existing laws against offshore banking.
With that having been said, it's not clear whether online gambling applies in this case because it's not been taken to court. It would mostly come down to whether or not the definition of offshore banking included online gambling or not, and it's hard to say which way it would go in court.
No licensing process exists for online gambling sites in Paraguay. However, they do have a sort of licensing body for land-based gambling which is the National Committee of Games of Chance, and it's illegal to offer games in the country without permission. However, this isn't necessarily a licensing process like what most people think of and is often a somewhat less formal affair.
Even with that being the case, there is a perfect storm happening in Paraguay right now between the pressure from their banking laws and the presence of this National Committee. Many experts believes that Paraguay will eventually license online gambling through a central banking location much in the way that Russia has done to help limit opportunities for money laundering (which is the reason for the law in Paraguay against offshore banking).
No player protections exist for online gambling in Paraguay, so players are advised to participate at their own risk. With that having been said, there have been no reports of the government going after players for enjoying the games, so no precedent has been set for bringing charges against players or prosecuting them for taking advantage of foreign gambling operators.
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