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Online Gambling License in Georgia: Tax Benefits for Foreign Operators
In a strategic effort to bolster foreign investment and solidify its standing in the global gambling sector, the Parliament of Georgia enacted significant amendments to its tax legislation on 27 June 2024. These changes, effective from 1 December 2024, are designed to create a more favorable tax environment for online gambling operators targeting international players, thereby enhancing Georgia's appeal as a competitive hub for online gaming enterprises.
Regulatory Framework for Online Gambling in Georgia
Online gambling activities in Georgia are regulated under the Law of Georgia on Organizing Lotteries, Games of Chance, and Other Prize Games. This law mandates that all online gambling operators obtain a permit from the Revenue Service of Georgia. Prior to this, operators must secure an authorization certificate from Random Systems Georgia, which oversees the electronic gaming business control system to ensure compliance with both international standards and Georgian legislation.
Once authorized, operators are permitted to use two distinct internet domains: one exclusively for Georgian players and another for foreign players. This bifurcation allows operators to tailor their services and comply with specific regulatory requirements for each market segment.
Permit Fees and Licensing Requirements
The annual permit fees for online gambling operations are as follows:
- Online slot salon: GEL 1,000,000
- Online casino: GEL 5,000,000
Operators of online sportsbooks targeting foreign players must also maintain a land-based sportsbook. Related fees include:
- Land-based sportsbook: GEL 30,000 to GEL 300,000 annually, depending on location
- Online sportsbook: GEL 100,000 annually
Additionally, quarterly fees of GEL 250,000 to GEL 300,000 apply for land-based sportsbooks, based on geographic location within Georgia.
Taxation Policies for Online Gambling Operators in Georgia
Slot Salons
Gross Gaming Revenue (GGR) from foreign players is taxed at 5%, reduced from the previous rate of 15%. Foreign players are also exempt from the 5% income tax on withdrawals.
Sportsbooks
Operators targeting foreign players are taxed on GGR at a rate of 5% instead of the standard 7% on total bets. Withdrawals by foreign players are tax-free.
Casinos
The GGR generated from foreign players is taxed at 5%, down from 15%. The 5% personal income tax on player withdrawals is also waived for foreign users.
Compliance and Operational Considerations
Operators must establish a legal entity in Georgia and comply with AML and KYC regulations. The licensing process typically takes up to 20 working days and involves submitting documents related to company structure, gaming models, and player protection protocols.
Georgia’s main cities, Tbilisi and Batumi, are becoming regional hubs for licensed online gambling activities, offering strong infrastructure and business support.
The upcoming tax amendments, effective 1 December 2024, represent a major opportunity for foreign-based online gambling companies. With reduced corporate tax rates and favorable withdrawal rules, Georgia is positioning itself as an emerging hub for regulated online casinos, sportsbooks, and slot websites. Entities interested in entering the market are encouraged to begin the licensing process now to ensure compliance and timely launch.