Paraguay is in Central America, bordered by Argentina, Brazil, and Bolivia. The National Committee of Games of Chance has cracked down on illegal gambling places within the country and now regulates the industry with only a handful of casinos now operating within the country – two of which are located in the country's capital city, Asunción.
The laws on online gambling, however, are very unclear, so it seems to be neither legal nor illegal with Paraguayan players opting to gamble on foreign sites that allow players from their country.