The Gambling Market of Georgia: a Promising Region for Investment in 2021

Posted by Andrew Price
2WinPower Partner, owner of the gambling establishments network.
2021/03/25

While various industries sustain losses due to the global pandemic, the casino sector strengthens its position. Georgia has long appreciated the prospects of this industry and recognised the iGaming sector as a reliable economic instrument at the domestic level.

Gambling business in Georgia: nuances

In this article, 2WinPower experts will tell you about the nuances of running a gambling business in Georgia. We have gathered comprehensive information on legislative innovations, taxes, and the specifics of the acquisition of a licence.

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New Rules in the Field of Market Monitoring

Gambling projects play an important role in the economic development of the country, and therefore, the Georgian authorities are interested in the provision of maximum support for the legal market.

In 2021, a number of enterprises will be founded, and they will be aimed at strengthening control over the industry.

Responsibilities of these new organisations:

  • checking the quality of game mechanisms;
  • assessment of compliance of software characteristics with legal requirements;
  • control over the legality of actions of local and foreign providers;
  • audit and issuance of certificates of conformity.

At the beginning of the year, amendments were made to the Organisation of Lotteries, Gambling, and Profitable Games Act. They will affect both local and foreign entrepreneurs but such changes will be introduced gradually so that the industry adapts to them with minimal losses.

The main legal developments of 2021

Local registration

Since January 2021, all enterprises related to the gambling business (network projects, software distributors, software vendors) must receive a legal address in the country

Digital control program

Tasks of the program:

  • control of the timeliness of tax payments;
  • testing the operators’ compliance with the norms of a local licence;
  • assessment of the legality of the software vendors’ work

Operation under the special permit

It is mandatory for all operators, developers, and distributors to have a gambling certificate. It is impossible to legally launch a gaming site or an offline location without purchasing a local licence

Document management

Applicants must provide a copy of the agreement with the licensor to the supervisor. Changes to the contract must be reported to the controlling agency within 2 days

Commission fee

Representatives of the industry should timely pay the commission for the services of the controlling body.

The amount of payments is determined by the H455 legislative provision

Features of Working in the Digital Sector

Online casinos in Georgia: features

The gambling field in Georgia simultaneously performs 2 tasks:

  • support of the public economics;
  • the attraction of a tourist flow.

Georgia is favourably disposed towards gambling projects. All types of casino entertainment are allowed in this country:

  • land-based establishments;
  • betting shops;
  • gambling halls with slot machines;
  • lotteries and bingo;
  • virtual casinos and sweepstakes.
The jurisdiction offers investors a good tax rate and a simplified legalisation program. The only condition is that the establishment of a casino business on the Internet is possible only after the opening of a land-based location.

There is also a quarterly fee for working with digital traffic — from 30 to 60 thousand Georgian lari.

Tax Burden on the Gambling Market

Entrepreneurs pay 2 types of taxes:

  1. Quarterly tax. Its size depends on the type of gambling activity.
  2. Annual fee. This is a fixed fee that is calculated for each region of the country separately.

The annual tax is paid by instalments during the reporting period. The amount of deductions depends on the geolocation of the land-based casino. The only exception is the resort areas of the country.

Entrepreneurs from Sighnaghi, Gudauri, and Kazbegi are exempt from any taxes, regardless of the type of gambling project they have implemented.

The annual tax rate in accordance with the type of business:

  • casinos (land-based and online enterprises) — from 100 thousand to 5 million GEL;
  • gambling halls with slot machines — from 50 thousand to 1 million GEL;
  • clubs with board and card games — 10–50 thousand GEL;
  • lottery drawings and bingo — 15 thousand GEL;
  • bookmaker’s offices — from 30 to 300 thousand GEL.

Additional payments:

  • 20% — of the income of casino visitors (tax on the salaries of staff);
  • 1% — of the property of entrepreneurs;
  • 15% — corporate income tax;
  • 20% — liability tax (is paid by the organisers of tournaments and sweepstakes).

How to Obtain the Georgian Permit

Georgian casino licence: how to obtain

The government has organised a very simple licensing procedure: operators can file an electronic application by attaching scans of the necessary documents to the letter. Moreover, this can be done totally free of charge.

A separate package of documents is prepared for each type of gambling project.

The application is considered within 20 days. The procedure can be accelerated by paying:

  • 400 GEL for the consideration of an application within 10 days;
  • 800 GEL for obtaining the result in 5 days;
  • 2 thousand GEL for obtaining a permit in one day.

The local regulator issues a single licence for all types of gambling services for 5 years.

To avoid mistakes during the collection of documents and registration of an offshore company, please contact the managers of 2WinPower.

We offer legal support, including:

  • recommendations related to the selection of a licence;
  • drafting a business plan;
  • opening of reserve funds and bank accounts;
  • registration of the legal address of the enterprise;
  • assistance in collecting a package of documents and application filing.

We constantly monitor industry trends and offer excellent tools for optimising a startup. Our catalogue of offers contains various types of software:

The Main Things about Working in the Georgian Casino Market

The decision to buy a local casino licence is a convenient and safe way to legalise your project and attract international traffic.

The country promises investors the following prospects and benefits:

  • Low tax rates. Enterprises that operate in local resort areas are free of tax.
  • Variability of the formats of work. All types of gambling projects are allowed in Georgia: offline and digital casinos, sweepstakes, bookmaker’s offices, lottery business, and gambling halls with slot machines.
  • Simplified licensing procedure. You file an application electronically totally free of charge. The controlling body issues a single document for any type of gambling activity.

From us, you can purchase a casino on the most favourable terms. We offer not only an extensive set of certified software but also the following services:

  • remote administration;
  • development and implementation of bonuses and loyalty programs;
  • assistance in organising affiliate networks;
  • connection of security systems;
  • integration of multicurrency payment modules (including support for cryptocurrency payments);
  • creation of mobile applications;
  • development of HTML5 content on the basis of the client’s sketches.
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