Georgia Introduces Major Gambling Tax Increases and Strict Compliance Measures

Georgia is set to implement significant changes in its gambling sector, as Prime Minister Irakli Gharibashvili signs an executive order for sweeping new gambling laws.

These changes include substantial tax hikes on gambling profits and stricter compliance measures to enforce the country’s ban on gambling for individuals under 25 years old. The new tax rates, rising from 10% to 15% on profits and 2% to 5% on player withdrawals, are expected to substantially boost state revenue.

Through these rigorous measures, Georgia aims to create a more regulated and responsible gambling environment. This approach reflects a commitment to safeguarding public interests and ensuring that the gambling industry contributes more significantly to the state’s financial health.

Keep an eye on Georgia’s evolving gambling landscape, as these new laws are set to reshape the sector, from operator compliance to player engagement.

Georgia’s Bold Steps in Gambling Regulation

Prime Minister Irakli Gharibashvili of Georgia has enacted an executive order bringing forth a new era in the country’s gambling regulation. Set to take effect in July 2024, these new laws encompass a notable increase in gambling taxes and the implementation of stringent compliance measures, particularly focusing on the country’s ban on gambling for those under 25 years old.

Significant Tax Increases for Enhanced State Revenue

The Georgian government is poised to enhance its revenue streams through these new gambling laws. The tax rate on gambling profits will see a considerable jump from 10% to 15%, while taxes on player withdrawals will increase from 2% to 5%. These hikes are expected to generate an additional GEL 400 million (€137 million) annually for the state, marking a significant financial impact on the gambling sector.

Enforcing Age Limits and Compliance

Starting July 1, 2024, Georgia’s Code of Administrative Offences will introduce penalties for violations of the minimum age limit for gambling, which has been set at 25 years. For first-time offences, operators could face fines of GEL 10,000 (€3,500), escalating to GEL 20,000 (€7,000) for subsequent breaches. Additionally, establishments like internet cafes, bars, and shops risk fines up to GEL 30,000 (€10,000) if found permitting underage gambling.

Database Access for Government Agencies

In a move to further tighten regulatory oversight, gambling operators will now be required to provide government agencies with access to individual customer databases. This measure will enable authorities to monitor and control gambling activities more effectively, ensuring compliance with the new regulations.

Prime Minister Gharibashvili’s Stance on Gambling Regulation

Prime Minister Gharibashvili has previously expressed concern over the prevalence of gambling in Georgia, despite efforts to curb the activity through measures like a ban on gambling advertising. The new laws reflect his administration’s ongoing efforts to regulate the industry more stringently, including limiting online gambling to companies that operate land-based gambling facilities.

The Future Landscape of Gambling in Georgia

These legislative changes mark a pivotal shift in Georgia’s approach to gambling regulation. By increasing tax rates and enforcing age restrictions, the government aims to not only boost state revenue but also promote responsible gambling practices. As the industry adjusts to these new norms, it is expected to witness a transformation in both its operational framework and contribution to the Georgian economy.