Georgian stakeholders launch fightback against proposed igaming curbs
Georgian Gambling Association leads charge as consultations with government are scheduled to discuss matter
The Georgian Gambling Association (GGA) has launched a fightback against the government’s plans to bring in draconian gambling restrictions throughout the country.
The GGA, along with various gambling industry stakeholders, are attempting to slow down Prime Minister Irakli Gharibashvili’s draft legislation to bring in reforms which could have potentially disastrous effects for the industry.
Gharibashvili has suggested the introduction of a 65%-70% increase in taxation on the Georgian gambling industry, while all forms of advertisement (bar sponsorship agreements) would be outlawed. The proposals would also ban Georgian citizens under the age of 25 from accessing online and land-based casinos.
More worrying for online operators serving the former Soviet state, Gharibashvili has publicly stated his intentions to see online casinos eventually outlawed.
The developments will be of serious concern to the likes of Flutter, Entain and Betsson, all of whom have acquired local operators in recent years to gain a foothold in the regulated market.
Flutter owns Adjarabet, while Crystalbet and Europebet are subsidiaries of Entain and Betsson respectively.
EGR understands that the Georgian government are keen to expedite the process for reform, however the government has since initiated a round of consultations with the GGA and various stakeholders.
Boutique consultancy 4H Agency confirmed to EGR that the week-long consultation will see all parties discuss the proposed legislative changes and make a final decision on any potential implementation.
George Mamulaishvili, GGA’s head of administration, said: “[We] have only had one consultation with the Ministry of Finance so far. It has not brought any visible results yet.
“However, the GGA use all their resources in order to change the perspective of the authorities by providing to them statistical materials and best global practices in the gambling market,” he added.