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How much!? Georgian Gambling Association warns of $742m illegal revenue every year

The Georgian Gambling Association (GGA) says illegal operators have expanded following tax rises introduced in 2021.

1 min read
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Key Points
The GGA warns planned increases in fines will place greater pressure on legal operators rather than target unregulated gambling
It calls for joint action between government and industry, while authorities say illegal operators are not a major issue

The GGA has warned that the country’s gambling market is under growing pressure from illegal operators, with an estimated GEL 2bn ($742.2m) leaving the country annually through unregulated platforms.

It says the number of unlicensed platforms operating in Georgia has increased significantly following tax rises introduced in 2021.

The GGA Head Giorgi Mamulaishvili argues that planned increases in sector fines are placing greater pressure on legal operators rather than targeting illegal gambling activity.

Under the proposed increases, fines for casino operators would rise from GEL 7,000 to GEL 20,000, while slot machine salon operators would see penalties increase from GEL 1,000 to GEL 10,000.

Fines for gambling club licence holders and operators of gambling and prize games would rise from GEL 2,000 to GEL 10,000. Operators providing casino, slot machine and totalisator games in electronic or system-based formats would face the same increases as casino operators.

According to GGA, most licensing breaches stem from technical issues rather than intentional infringements by operators.

Mamulaishvili also said concerns about underage gambling are largely linked to illegal operators, as licensed companies are subject to strict regulatory controls.

The industry has repeatedly offered cooperation to the Government to help tackle illegal operators using its expertise and resources.

The GGA is calling for joint action between the Government and industry to address the issue.

Meanwhile, the Ministry of Finance reportedly maintains that the scale of illegal operators is not as large, saying it continues to enforce measures against unregulated activity.

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Last month, Planet Hollywood and Iconic Entertainment announced construction of Georgia's first integrated casino resort in the capital Tbilisi

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