Georgia lifts lid on online casino restriction laws
Prime Minister and Minister of Finance unveil first draft of new restrictive legislation against operators
The Georgian government has detailed the finer points of its proposed restrictions on the online casino industry, including changes to the tax regime and advertising blackouts.
Last week, Prime Minister Irakli Gharibashvili called for the prohibition of online casinos citing gambling-related harm and financial losses from the country’s economy as his two key reasons for exploring the policy.
Gharibashvili then instructed his Minister of Finance Lasha Khutsishvili to draft an initial bill which would implement restrictions on the vertical.
According to the new legislation, as detailed to EGR by 4H Agency consultant Sophia Balashvili, gross gaming revenue (GGR) will become subject to a 10% profit tax, with winnings hit with a 2% income tax.
Gharibashvili also noted that the Georgian gambling industry would experience a 65%-70% overall increase in taxes.
In terms of an advertising blackout, Gharibashvili said operators would no longer be able to market their services on the internet, via television or in out-of-home settings. Operators would only be able to promote their services via sponsorship agreements.
Gharibashvili also confirmed last week’s initial proposal which will see all Georgian citizens under the age of 25 banned from accessing online and land-based casinos. Foreign nationals will not be subject to the ban.
Public officials, socially vulnerable groups who receive state aid, self-excluded persons and those blacklisted via court decisions will also all be banned from accessing gambling.
Finally, the government will also impose restrictions on money transfers abroad, with payment service providers required to prohibit the transferring of money to gambling firms outside of Georgia.
The Georgian government will present the full first draft of the new legislation today (30 November), with further updates expected in due course.