Georgia backs casino tournaments to boost tourism despite opposition
The legislation offers tax incentives and regulatory relief aimed at attracting high-spending foreign visitors.
Key takeaways:
- Georgia’s parliament approved legislation allowing casinos to host international gambling tournaments by a vote of 73-5.
- At least 80 per cent of participants must be foreign nationals for an event to qualify as an international gambling tournament.
- Casinos hosting qualifying tournaments with prize pools above GEL3m will receive exemptions from certain gambling business fees.
- Foreign participants in tournaments with prize pools exceeding GEL3m will not pay tax on their winnings.
- Religious leaders, opposition politicians and some lawmakers have warned the measure could increase gambling’s social impact despite its tourism-focused objectives.
Georgia has cleared the way for casinos to host international gambling tournaments, creating a new tourism-focused gambling product backed by tax incentives and regulatory benefits. The move reflects the government’s efforts to attract foreign visitors and off-season economic activity, but it has also triggered a public debate over whether the policy represents tourism development or a broader expansion of gambling.
Georgia.- The Georgian parliament has approved legislation allowing casinos to host international gambling tournaments, despite criticism from religious leaders, opposition politicians and some lawmakers over the potential social impact. The law, introduced and fast-tracked by the ruling populist Georgian Dream party, passed its final reading with 73 votes in favour and five against.
Supporters say the measure will help boost tourism and generate economic activity, while critics argue it risks further promoting gambling in the country. During parliamentary debate, lawmakers revised the proposal by increasing the minimum share of foreign participants required for a tournament to qualify as international. Under the final version, at least 80 per cent of participants must be foreign nationals, up from the 70 per cent threshold included in the original draft.
Incentives and tax breaks for large tournaments
The new law defines an international gambling tournament as an event organised by a casino with a prize pool guaranteed in advance by the organiser and with at least 80 per cent foreign participation. The legislation introduces significant incentives for both organisers and players when prize pools exceed GEL3m (€1.05m). Casinos that use gaming tables exclusively for qualifying international tournaments with prize pools above that level will be exempt from the gambling business fees normally applied to gaming tables.
Organisers will also be permitted to generate revenue from the tournaments, which can be staged both at licensed casino premises and at approved external venues. Meanwhile, winnings earned by individuals participating in international gambling tournaments will generally be subject to a 20 per cent tax. However, foreign nationals competing in tournaments with prize pools exceeding GEL3m will be exempt from taxation on their winnings.
Legislators also removed a provision that would have imposed a GEL150,000 fine (€52,350) on unauthorised organisers. However, authorised operators that breach licensing requirements for hosting international gambling tournaments will face fines of GEL50,000.
Political and religious opposition to casino tournaments in Georgia
The legislation has attracted criticism from the Georgian Orthodox Church Patriarchate and the Public Defender, both of which questioned the rationale for encouraging gambling-related events in the country. The Patriarchate has indicated that it will formally discuss the issue before announcing its position. Metropolitan Anton of Vani and Baghdati told local media: “We will discuss it and express our opinion. To tell you the truth, many things are unclear, but maybe they will explain it to us.”
Archpriest Andria Jaghmaidze, head of the Patriarchate’s Public Relations Service, expressed surprise at the proposal and recalled that the Georgian Patriarchate was a major participant in the process that began in 2017 to develop regulations for the gambling sector.
Political opposition to the measure also emerged during parliamentary discussions. The For Georgia faction voted against the bill, while members of the People’s Power party, which is aligned with the parliamentary majority, questioned the decision to fast-track the legislation. Eka Sepashvili raised concerns over the potential societal effects of the reform. During the second reading, she warned that “the draft law may lead to unwanted popularisation of these games, which is an important issue for society”.
Supporters of the law have defended it as a tourism initiative rather than a gambling expansion measure. Parliament’s Economic Policy Committee chair, Shota Berekashvili, argued that the events should be viewed as international competitions capable of attracting large numbers of visitors.
“These tournaments are, in a sense, similar to sporting competitions. Such tournaments are held in many European countries, and their main target is to develop the tourism industry,” he said. “Participants gather together, and there can be thousands of them. These events are organised particularly during the off-season, when economic activity in the tourism sector is low, helping generate additional economic activity. This is not gambling in the direct sense of the word.”
However, Giorgi Sharashidze of For Georgia told local media: “Georgian Dream is attempting to turn Georgia into a gambling country. The party justifies this by claiming it will promote tourism. With all due respect, what kind of tourism development are we talking about? If we want tourism, fine – Georgian Dream could legalise prostitution, too, and tourism would flourish. It could also legalise drug use, and tourism would flourish even further.”
Last month, the government confirmed the launch of the new Georgia international igaming licence regime. Random Systems Georgia (RSG), the firm designated by the government to advise and oversee the creation of the regime, began rolling out the regime following a soft launch in July. The framework aims to attract operators targeting players outside of Georgia with a package that includes a five-year licence along with banking, payments and compliance services, including arrangements for gambling-coded MCC 7995 payment processing.
FAQs
What does Georgia’s new casino tournament law allow?
The law permits licensed casinos to organise international gambling tournaments with guaranteed prize pools. Events can be hosted at casino premises or approved external venues.
What qualifies as an international gambling tournament?
Under the final legislation, at least 80% of tournament participants must be foreign nationals. The threshold was increased from the 70% requirement proposed in the original bill.
What tax benefits are included in the law?
Foreign players participating in tournaments with prize pools above GEL3m will be exempt from tax on their winnings. Casinos hosting qualifying events can also receive exemptions from certain gambling business fees.
Why is the legislation controversial?
Critics, including religious leaders and opposition politicians, argue it could promote gambling and create social harms. Supporters contend the tournaments are primarily a tourism initiative designed to attract international visitors and increase economic activity.
How could the law affect Georgia’s gambling industry?
The legislation enables operators to market and host large-scale international events while benefiting from fiscal incentives. It could increase foreign participation in Georgia’s casino sector and position the country as a regional destination for gambling tournaments.
