The Georgian government has unveiled a draft bill aimed at transforming the country’s online gambling market. The legislation, currently in fast-track discussion in parliament, would establish a unique licensing framework for operators exclusively targeting foreign players. This new regime is designed to entice international operators with a reduced tax rate on gross gaming revenue (GGR).
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Tax Benefits and Licensing Details
Under the proposed framework, gambling operators servicing non-Georgian customers would benefit from a reduced 5% tax on GGR, calculated on net revenue. This is a major cut compared to the standard levy imposed on domestic online casinos. Additionally, licenses under this regime would cost GEL 100,000 (€33,370) annually and would last five years. However, each license would be restricted to a single website—tightening the current allowance of two sites. And operators must adhere to strict conditions, such as ensuring Georgian citizens are automatically blocked from accessing these sites. Non-compliance would result in fines of GEL 20,000 (€6,670).
Comparison to Other Jurisdictions
Georgia’s strategy mirrors successful models in Malta, Gibraltar, and the Isle of Man—regions known for their attractive tax environments. Each has become a hub for international iGaming activities. And estonia, too, is set to reduce its GGR tax rate to 4% by 2029, underscoring a trend Georgia seems eager to join. However, the Georgian approach uniquely limits tax incentives to platforms serving only foreign customers. Domestic platforms will continue to face regular tax rates. This distinction aims to balance attracting foreign investment with maintaining a cautious stance on gambling within the country.
Domestic Challenges and Opportunities
Despite stringent regulations, major players like Flutter Entertainment’s Adjarabet and Betsson Georgia remain active in the local market. Their ongoing presence highlights the resilience of the sector. It’s worth noting that recent laws have raised the legal gambling age to 25 and banned roughly 1.5 million citizens from gambling due to their public-sector employment or criminal records. And lawmakers advocate that the new framework could diversify Georgia’s economy by creating niche jobs in technology and marketing, potentially turning the Caucasus region into a new tech service center.
Future Implications
The Georgian parliament is expected to deliberate further on the bill in the coming weeks. If passed, it could mark a major shift in the region’s gaming industry dynamics. Industry insiders will be watching closely to see if this strategy effectively draws foreign operators without compromising domestic regulatory goals.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
