The Georgian Parliament is reviewing a draft law that would create a licensing framework for foreign operators while restricting local citizens' access to their offerings.
The amendments were submitted for expedited consideration and will introduce new categories of licences under the Law on the Organisation of Lotteries, Gambling and Prize Games.
Key aspects of the draft legislation include a lower tax rate for operators serving foreign customers. Operators licensed under the new framework will pay a 5% GGR tax, compared to the 20% rate currently applied to standard online casinos available to Georgian citizens.
A new framework would establish three new licence categories covering online casino games, slots and sports betting.
Licences would be issued for five years, with an annual fee of GEL 100,000 ($37,800). Violations of licensing conditions, as well as missed fee payment deadlines, would be punishable by a GEL 20,000 fine.
Separately, it is proposed that the rules governing the use of internet domains be tightened. Currently, a single license allows up to two domain names. Under the proposed changes, only one website would be permitted per license. A transition period would be provided for existing licenses.
The amendments were initiated by MPs Shota Berekashvili, Giorgi Barvenashvili, Tornike Berekashvili, Anton Obolashvili and Mariam Lashkhi. They argue that changes will attract new operators to the country, increase foreign investment, and create jobs, without contributing to a rise in problem gambling.
Earlier this year, the Georgian Gambling Association (GGA) stated that illegal operators expanded following tax rises introduced in 2021. According to the association, an estimated GEL 2bn leaves the country annually through unregulated platforms.
In April, the Georgian Government proposed substantial increases to fines for gambling licence violations, citing existing penalties as insufficient to ensure operator compliance
