The Georgian parliament has approved tax amendments for online gambling operators working with foreign players. The measure will come into force on December 1, 2024, and is a strategic move to attract foreign investment in the gambling sector.
Taxation changes
- Land-based and online casinos and slots will pay 5% of gross gaming revenue (GGR) generated from foreign players, while tax on income from Georgian players will remain at 15%.
- Online bookmakers currently pay 7% to the state on all bets placed by players. Under the new amendments, the tax rate on income from foreign players will be 5% of GGR.
- Operators of online casinos, slot sites, and online bookmakers retain 5% of funds withdrawn by players, but foreign players will now be exempt from this tax, which will potentially increase their net revenues.
GGR is Gross Gaming Revenue, which is the difference between the total amount of bets placed by players and the amount of winnings paid out to players.
Other changes
Operators will still need to obtain a permit from the National Revenue Agency under the Law on organizing Lotteries, Games of Chance, and Other Prize Games. This also requires obtaining a mandatory certificate of authorization from Random Systems Georgia, a company that monitors gambling products and services.
Once authorized, operators can use two Internet domains, one for Georgian players and one for foreign players. The annual cost of the operating permit for online slots sites is $365 thousand and for online casinos – $1.8 million.
At the same time, online bookmakers must have at least one land-based retail sportsbook location. The annual fee will be from $11 thousand to $110 thousand depending on the location.
Land-based gambling operators will also pay quarterly fees ranging from $91k to $110k.
Tightening for domestic players
Georgia is raising the age limit for gambling to 25 years. From July 1, the new Code of Administrative Offenses prohibits public sector employees and those charged with criminal offenses from participating in gambling both in land-based establishments and online.
The Ministry of Finance said that 1,503,989 citizens were automatically added to the list of those banned from gambling.
Gambling operators will be obliged to provide customer databases to check against the register. Fines of up to $11,000 may be imposed for violations.
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