Its much more simple to use state machines to handle pause as well as only have one main game loop in your code. Classes would be nice too. With a pong game, the paddes should be classes, and the ball should be. Because of all that it makes it more work to find the issue. More work i dont want to do. I would suggest to read the pygame tutorials here on the forum. Your structure will eventually turn into spaghetti code the more you add.
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