Conajzar goes after illegal raffles promoted by influencers

Conajzar goes after illegal raffles promoted by influencers

Cars, motorcycles, ATVs, and jet skis offered as prizes in raffles sold on social media, with public figures and highly influential individuals acting as sellers. This phenomenon has put Paraguay's National Gambling Commission (Conajzar) on alert, as it has detected a growing proliferation of unauthorized raffles and draws, both digital and physical, that promise high-value goods outside the legal framework.

The head of the agency, Carlos Liseras, reminded that throughout the country, only four companies are authorized by Conajzar to operate commercial raffles, which pay a high fee and are subject to control. In statements to the newspaper Última Hora, he explained that Law 7438, in subsection C of its article 23, allows municipalities to authorize raffles for social, sports, educational, and religious entities within their own jurisdiction, in addition to commercial raffles of strictly local scope.

The problem, according to Liseras, arises when some municipalities go beyond these attributions. The head of the regulator identified cases in Ciudad del Este, Alto Paraná, and the Central Department, where mayors grant permits for commercial raffles that are then promoted nationwide through influencers and young people with thousands of followers. These raffles evade the fee or pay only a fraction, leading to tax evasion, and since they lack game rules or control, there are no guarantees that the prizes will actually reach the winners.

Liseras admitted that the agency has serious conflicts with some mayors and anticipated strong interventions together with the National Tax Revenue Directorate (DNIT). He also confirmed that cases have already been filed with the Public Prosecutor's Office, that new complaints are being prepared, and that operations will soon be underway, given the large number of influencers promoting these draws on social media.

Conajzar is the body that regulates and oversees the operation of gambling in Paraguay, from casinos and sports betting to lotteries and commercial raffles, and grants concessions in exchange for a fee payment. The DNIT, with which the regulator plans to act on this front, is the tax administration created in 2023 from the unification of the Undersecretariat of State for Taxation and the National Customs Directorate.

Tags: National Gaming Commission, Carlos Liseras, illegal raffles in Paraguay, influencers and gambling