Georgia Proposes New Licensing Regime for International Operators

Georgia has unveiled draft legislation to introduce a dedicated licensing category for international online gambling operators. The proposed amendments to the law “On the Organization of Lotteries, Gambling and Profitable Games” aim to establish specific licenses for companies offering online casino services to foreign customers only, with Georgian citizens automatically blocked from these platforms. This strategic move is designed to attract foreign direct investment and foster economic growth while enhancing local consumer protection.

Key Takeaways

• Georgia has submitted draft legislation for a new international online gambling license category, a trend seen for many new live casinos.
• The new framework would apply a reduced 5% Gross Gaming Revenue (GGR) tax for foreign-facing operators.
• Licenses would be valid for five years with an annual fee of 100,000 GEL, targeting non-Georgian customers exclusively.

Georgia's New Regulatory Framework Details

Under the proposed legislation, operators securing these international licenses would benefit from a favourable 5% GGR tax rate, significantly lower than the standard 20% GGR tax for online casinos, including many new mobile casinos, serving Georgian customers. This tax is calculated as the difference between the stakes received and the winnings paid out. Each license would be valid for five years and carry an annual fee of 100,000 GEL (£28,740). Operators failing to comply with license conditions or payment deadlines would face fines of 20,000 GEL. The reforms also tighten domain restrictions, limiting operators to a single website per license, a reduction from the current allowance of two.

Market Implications and Strategic Objectives

The draft legislation aims to position Georgia as a competitive hub for international online gambling, drawing parallels with regulated casino markets globally like Malta and Gibraltar. By offering a reduced tax regime exclusively for foreign-facing operations, the government seeks to balance consumer protection for its citizens—who are already subject to strict gambling restrictions, including the exclusion of approximately 1.5 million individuals—with economic development goals. Lawmakers anticipate that this approach will attract foreign direct investment, create skilled technology and marketing jobs, expand the country’s service sector, and generate additional tax revenue.

Sources: Georgia sets out to offer dedicated foreign licenses with 5% gambling tax