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Georgia moves to strengthen gambling regulations with higher fines

The Georgian Government has proposed substantial increases to fines for gambling licence violations, citing existing penalties as insufficient to ensure operator compliance.

1 min read
Georgia
Key Points
Georgia plans to significantly increase fines for gambling licence violations across multiple verticals
Authorities say current penalties are insufficient to deter non-compliance
Draft amendments will be reviewed by Parliament in the coming weeks

The Georgian Government has submitted draft amendments to Parliament that would significantly increase financial penalties for gambling licence violations, in a move aimed at strengthening regulatory compliance across the sector.

The proposed changes target the law "On Arranging Lotteries, Gambling and Prize Games" and were prepared by the Ministry of Finance. They are expected to come before Parliament for review in the coming weeks.

Under the draft legislation, fines for casino operators would rise from 7,000 GEL ($2,600) to 20,000 GEL ($7,500), while slot machine salon operators would see penalties increase from 1,000 GEL to 10,000 GEL. 

Fines for gambling club licence holders and operators of gambling and prize games would go up from 2,000 GEL to 10,000 GEL. 

Operators providing casino, slot machine and totalisator games in electronic or system-based formats would face the same increase as casino operators, from 7,000 GEL to 20,000 GEL.

The Government has been explicit about its reasoning, stating in its explanatory note that existing fines have proven inadequate as a deterrent. 

It noted that in many cases licence holders find it financially preferable to breach conditions and pay the penalty rather than achieve full compliance – a situation the proposed amendments are designed to address by making non-compliance a more costly option.

The reforms signal a tightening of Georgia's regulatory stance at a time when the country's gambling sector is also attracting significant investment. Last month, Planet Hollywood and Iconic Entertainment announced construction of Georgia's first integrated casino resort in the capital Tbilisi – a two-tower, 1,200-room development that will include a 50,000 square foot casino and is expected to create over 2,000 permanent jobs.

Good to know

The proposed fine increases reflect a wider trend among regulators globally to strengthen enforcement as gambling markets expand and diversify

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