Gambling activities in Georgia - YB Case 2024

Gambling activities in Georgia

Gambling activities in Georgia

Hubs for gambling

Georgia has emerged as a significant hub for the gambling industry, providing favorable conditions for both land-based and online gambling enterprises. Here are key highlights of gambling hubs in Georgia:

Tbilisi

  • Hosts several major casinos and gambling establishments
  • Attractive destination for both local and international gamblers

Batumi

  • Popular for its casinos, contributing to tourism growth
  • Home to some of the largest and most luxurious casinos in the country

Kutaisi

  • Emerging as a growing destination for gambling activities
  • Offers potential for new investments in the gambling sector

Key features of gambling hubs

  1. Regulatory environment
    • Favorable laws and regulations supporting the gambling industry
    • Active involvement of the Tax Service and the Department of Gaming Policy
  2. Economic impact
    • Significant contribution to local economies
    • Creation of jobs and promotion of tourism
  3. Accessibility
    • Well-connected via major transportation networks
    • Attracts a diverse range of visitors
  4. Investment opportunities
    • Open to foreign investments in the gambling sector
    • Potential for new casino developments and online gambling platforms

Gambling activities in Georgia are legal, provided the appropriate permits are secured in accordance with local laws. Below, we outline the specifics of gambling licensing in Georgia.

Taxation

Annual and penalty tax rates

  • Annual tax rate: 5%
  • Non-compliance fine: 1K GEL
  • Late payment fine: Up to 10K GEL

Quarterly Fee Structure

  • Casino gambling table: 20K to 40K
  • Gambling machine: 2K to 4K
  • Incentive drawing: 10% of the prize fund
  • System-electronic games (excluding incentive drawings): 250K to 300K
  • System-electronic casino games (June, 2024): 250K to 300K
  • System-electronic slot machine games (June, 2024): 250K to 300K
  • System-electronic betting games (June, 2024): 250K to 300K
  • Lottery organization: 10% of the difference between the total cost of sold tickets and the prize fund
  • Cash desks for gambling and/or profitable games (located outside the permitted facility): 1,5K to 20K
  • Club gambling table: 4K to 14K

Additional taxes

  • Personal income: 20%
  • Property: up to 1%
  • CIT: 15%

Regulation

Regulatory body

Responsibilities

Tax Service

Issuing gambling licenses

Monitoring compliance with permit conditions

Conducting audits

Revoking permits for valid reasons

Creating favorable conditions for industry development

Ensuring adherence to business management regulations

Regulatory Framework

Licensing and obtaining permits

License fees

Organization of lotteries and gambling

Gambling commissions

Department of Gaming Policy

Developing gambling business policy in collaboration with investors

Enhancing legislation and drafting amendments

Identifying the needs of gambling licensees

Organizing information about agreements between state and business representatives

Evaluating the effectiveness of legislative changes

Representing citizens' legitimate interests

Protecting consumer rights

Studying international gambling regulation practices

LEPL Revenue Service

Overseeing gambling establishments

Annually inspecting software and checking payout percentages

Reporting violations to the prosecutor's office

Prescribing penalties as per the Criminal Code and Ministry of Human Rights regulations

The following gambling permits are available in Georgia:

  • Casino operation
  • Gambling club
  • Slot machine club
  • Lotto
  • Bingo
  • Incentive drawing (valid for 1 year)

Licenses are valid for five years (except for incentive drawings). License holders for land-based gambling can also legally organize online gambling.

Benefits

In Georgia, licensing is the relatively straightforward and efficient process. Typically, a standard application is approved within 20 days by the regulatory authority. For expedited processing, operators can pay an additional fee. The cost of the permit varies based on the issuance timeline. If the company owner is willing to wait approximately 20 days, the permit is issued free of charge.

Interested in obtaining a gambling permit in Georgia? Contact us for expert assistance and guidance throughout the process.

Registration

Required documents
  • Written application
  • Extracts from the state register of registration (for legal entities and individual entrepreneurs)
  • Receipt of license fee payment
  • Company charter
Information to be provided
  • Location of the gambling business
  • List of gaming devices
  • List of games, rules, and descriptions
  • Operational rules of the establishment
  • Minimum and maximum bet amounts
  • Conditions and place of payment of winnings
  • Deadlines for resolving customer complaints
  • Samples of chips and/or tickets

For further details on the procedure for obtaining a gambling permit in Georgia, please consult our specialists. To request consulting or support services, fill out the special communication form or visit the Contacts section on our website.

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