Georgia raises gambling tax rates
Georgia’s prime minister Irakli Gharibashvili said gambling turnover reached a “catastrophic figure” in 2022.
Georgia.- The government of Georgia has announced an increase in the tax rates on gambling after growth in the sector’s turnover last year. The tax rate on gambling profits will rise from 10 to 15 per cent. Meanwhile, a tax on player withdrawals will be raised from 2 to 5 per cent. The hikes are expected to generate an additional GEL 400m (€137m) per year for the state.
Presenting the country’s budget, prime minister Irakli Gharibashvili expressed surprise at an increase in turnover in the gambling sector in 2022, from GEL 48bn to GEL 52bn (€17.9bn). Describing the figure as “catastrophic”, he noted that there had been a rise in gambling despite a ban on advertising. Georgia has also since raised the minimum age for gambling to 25.
Gharibashvili said: “I want to express surprise on the one hand; on the other hand, it is very sad that the turnover of the gaming business is increasing. I am really not happy. Too many citizens are still involved in gaming.
“As you know, we made important changes last year when we banned advertising and restricted citizens’ participation in gambling to those over the age of 25. Automatically. 1.5 million citizens have been restricted from participating in gambling. Despite this, we see that a lot of citizens are involved. Accordingly, we have made a decision to increase taxes on this business.”
Other reforms to Georgia’s gambling legislation approved last year included restricting the operation of online gambling to companies licensed in the respective land-based gambling segments. Thus, online casino gaming can only be offered by Georgia’s 10 land-based casino operators, which include Adjara Group, Crystalbet and Iveria, online slots can only be offered by land-based slots halls and sports betting can only be offered by retail bookmakers.
