Georgia aims to attract international gambling operators with new licensing and tax regime
Georgian online gambling licensees targeting only foreign players would benefit from a reduce tax rate on gross gaming revenue.
Georgia.- The government of Georgia has tabled draft legislation that would create a new Georgian online gambling licensing framework for operators that serve foreign customers only. The bill, submitted to parliament under an accelerated procedure, would amends the Law On the Organisation of Lotteries, Gambling and Profitable Games to introduce permits for companies offering online slots and sports betting to non‑Georgian players.
The new licences would run for five years and would be subject to an annual fee of GEL 100,000 (€33.370). Each licence would be valid only for a single website rather than the current allowance of two under the general online gambling licence regime.
Access would be restricted to foreign nationals and stateless persons, with Georgian citizens to be automatically blocked from the platforms. Failure to comply with licence conditions or payment deadlines would trigger fines of GEL 20,000 (€6,670).
The draft legislation proposes a preferential tax regime designed to attract international gambling businesses. Instead of the standard gross gaming revenue (GGR) levy applied to domestic online casinos, internationally licensed operators would pay just 5 per cent of GGR, calculated on net revenue (stakes minus winnings).
Georgia’s approach can be compared to the strategies used in Malta, Gibraltar and the Isle of Man. Their favourable tax regimes have turned them into European hubs for international igaming operators. More recently, a similar move has been made through the reduction in gambling tax in Estonia, where the rate on GGR is due to be reduced to just 4 per cent by 2029.
Where Georgia differs is in how it’s specifying that the reduced tax rate incentive applies only for platforms serving foreign customers, while operators catering to Georgian residents remain subject to the standard rate. That decision is intended to balance the objective of encouraging foreign direct investment with the government’s harder line on gambling for Georgian consumers.
The legal gambling age in Georgia was raised to 25 in 2024, and new exclusion rules for public-sector employees and citizens with criminal records introduced last year have led to over 1.5 million citizens being banned from gambling in a country that only has a population of 3.8 million.
Despite this, major brands such as Flutter Entertainment’s Adjarabet and Betsson Georgia continue to operate, showing resilience in the sector. Lawmakers argue that as well as attracting investment, the proposed new framework could generate skilled jobs in technology and marketing, expanding the Caucasus nation’s service sector.
