Georgia Introduces Tax Reforms to Boost Online Gambling Industry
Georgia’s Parliament has approved tax amendments set to create a more favourable environment for online gambling operators targeting overseas customers. Effective from December 1, the new regime is part of the country’s strategy to position itself as a hub for international online gambling, competing with jurisdictions such as Malta and Curacao.
Reduced Tax Rates for Foreign-Focused Gambling Operators
Under the new tax regime, online gambling operators will benefit from reduced rates on gross gaming revenue (GGR) earned from foreign players. For land-based slot halls, the tax rate will drop from 15% to 5% for foreign-sourced GGR, while domestic GGR will still be taxed at 15%.
Similarly, online casinos and slots websites targeting foreign customers will be exempt from the 5% withholding tax on withdrawals, which continues to apply to domestic players.
Online sportsbooks will also see changes, with the current 7% tax on domestic bets remaining in place, while operators targeting overseas players will now be charged a reduced 5% tax on GGR.
Licensing and Permits
Despite the tax incentives, gambling operators will still need to comply with Georgia’s regulatory requirements. To operate, they must obtain a permit from the national revenue agency under the Law on Organizing Lotteries, Games of Chance, and Other Prize Games. This includes authorisation from Random Systems Georgia, which monitors gambling services on behalf of the Revenue Service.
Operators licensed in Georgia can operate up to two domains – one for domestic users and one for overseas customers. The cost of an annual permit for online slots operators is set at GEL 1 million (€328,000), while online casinos will pay GEL 5 million for their license.
Sportsbook operators, in addition to paying GEL 100,000 for an online license, must maintain at least one physical retail sportsbook location, which comes with fees ranging from GEL 30,000 to GEL 300,000 annually, depending on location.
Tightened Restrictions for Domestic Gambling
While Georgia is encouraging international operators, it is simultaneously tightening regulations for the domestic gambling market. In July, new rules introduced by the Ministry of Finance increased restrictions on who can gamble within the country.
The new Code of Administrative Offences bans all under-25s, public sector employees, and individuals with criminal records from gambling, both online and at land-based venues.
A government-compiled electronic register now lists 1,503,989 citizens prohibited from gambling. Operators must submit their customer data for cross-referencing with this register to ensure compliance. Breaches of the regulations could result in fines of up to GEL 30,000 (€10,000).
With these tax reforms and regulatory updates, Georgia aims to carve a niche in the global online gambling market. The changes aim to attract foreign investment and increase competitiveness by lowering the tax burden for operators, while maintaining stricter controls over its domestic gambling industry.
