Online gambling in Georgia: parliament votes to introduce favourable tax rates
The country aims to attract gambling operators targeting overseas customers.
Georgia.- The Parliament of Georgia has approved tax amendments that will introduce a new favourable regime for online gambling operators targeting overseas customers from the country. The measure, which will come into effect on December 1, is intended as a strategic move to attract foreign investment in the sector.
The new regime is intended to create a more competitive environment for online gambling operators by lowering the tax burden. The idea is to promote the country as a hub for online gambling operators competing with the likes of Malta and Curacao.
For land-based slot halls, the tax rate applied on GGR will be reduced from the current 15 per cent to 5 per cent for revenue from foreign players (the rate will remain at 15 per cent for domestic GGR). For slots websites, operators must withhold 5 per cent on withdrawals made by domestic players, but overseas players will now be exempt from that tax. The same measure will be applied to online casino sites targeting foreign players.
As for online sportsbooks, operators will continue to pay a 7 per cent tax on bets made by domestic customers. However, online sportsbooks that target overseas players will be charged 5 per cent on GGR instead.
Operators will still need to obtain a permit from the national revenue agency under the Law on Organizing Lotteries, Games of Chance, and Other Prize Games. This includes a requirement to obtain an authorisation certificate from Random Systems Georgia, a company that was appointed by the Revenue Service to monitor gambling products and services.
Georgian online gambling permits allow up to two domains, but one must be domestic-facing and the other overseas-facing. The annual cost of a permit for a website offering online slots is GEL 1m (€328,000), rising to GEL 5m for online casino.
Online sportsbook operators must also have at least one land-based retail sportsbook location, which can incur an annual fee ranging from GEL 30,000 to 300,000 depending on the location, in addition to the GEL 100,000 fee for the online sportsbook. Operators of land-based gambling also pay quarterly fees ranging from GEL 250,000 to GEL 300,000.
Georgia raises age requirement for gambling
While Georgia aims to attract gambling operators targeting overseas players, it’s been tightening regulations for its own domestic market. In March, the Ministry of Finance of updated Georgia’s electronic register of citizens who are prohibited from gambling ahead of the introduction of new rules. From July 1, the new Code of Administrative Offences has banned public sector employees and all under 25s from gambling both at land-based venues and online.
The new rules, which were issued in an executive order signed by Prime Minister Irakli Gharibashvili, also ban people charged locally with criminal offences from gambling. The Ministry of Finance says that 1,503,989 citizens have been automatically added to the list of people banned from gambling, including all under 25s, all state employees and those with criminal records. Those who have self-excluded from gambling are also included in the list.
Gambling operators must submit customer databases for cross-referencing against the register. Fines of up to GEL 30,000 (€10,000) may be issued for breaches.
