Key Points
- Georgian lawmakers are advancing legislation to establish licensing for international gambling operators
- Foreign-focused licenses would restrict services exclusively to non-Georgian citizens
- Proposed tax rate of 5% on gross gaming revenue significantly undercuts the 20% rate for domestically-oriented operators
- Five-year permits would require GEL 100,000 in annual fees with restrictions to a single domain per license
- Legislative intent includes attracting foreign capital investment in technology infrastructure and related services
Georgia is positioning itself to become an international gambling hub through a dual-market approach that welcomes global operators while maintaining restrictions on domestic participation.
Legislators have introduced comprehensive amendments to Georgia’s gambling framework that would establish a distinct licensing pathway for online gaming companies targeting international markets. The legislation, brought forward by a coalition of five parliamentarians, is currently under expedited consideration.
The framework would authorize operators to provide online casino games, slot machines, and sports wagering services exclusively to foreign nationals and individuals without citizenship. Georgian residents would face explicit exclusion from accessing these platforms.
Competitive Tax Structure Designed for Market Appeal
The economic incentives represent a central element of the proposal’s competitive strategy. Operators licensed under this international framework would remit a gross gaming revenue tax of merely 5%—calculated as the difference between total stakes received and payouts distributed.
This stands in sharp contrast to the existing 20% taxation applied to online gambling providers serving the Georgian domestic market.
The substantially reduced rate reflects a deliberate effort to position Georgia as a competitive jurisdiction for international gambling enterprises. Supporting documentation from government sources emphasizes anticipated benefits in foreign capital inflows.
The legislative package establishes three distinct permit classifications encompassing online casino operations, slot gaming products, and sports betting platforms—all oriented toward international clientele.
Licensing Framework and Operational Requirements
Permits issued under the new system would carry a five-year validity period and mandate annual licensing fees of GEL 100,000. Operators would fulfill tax obligations through monthly remittances over the duration of their permits.
License holders who violate compliance standards or default on financial obligations would incur penalties of GEL 20,000.
The legislation introduces stricter controls on domain usage. Operators would be restricted to a single internet domain per license, representing a reduction from the current two-domain allowance. Current license holders would receive a grace period to adjust to the modified requirements.
Government advocates characterize the bifurcated approach as an economic development strategy that avoids expanding gambling exposure among Georgian citizens.
Proponents argue that creating separation between international and domestic gambling operations could generate employment opportunities in technical sectors, particularly software engineering, information security, and digital marketing services.
Should the measure succeed, Georgia would stand among the most explicit examples of jurisdictions positioning online gambling as an export-oriented industry rather than a consumer-facing domestic service.
The draft legislation bears the sponsorship of Parliament members Shota Berekashvili, Giorgi Barvenashvili, Tornike Berekashvili, Anton Obolashvili, and Mariam Lashkhi.
While no formal voting schedule has been established, the proposal is proceeding through Parliament’s expedited review procedures.
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