Georgia has introduced draft legislation that would establish a new online gambling licensing framework for operators serving only foreign players.
The proposal, submitted to Parliament under an accelerated procedure, would amend the Law on the Organisation of Lotteries, Gambling and Profitable Games. It would do this by creating dedicated licenses for online casino and sports betting operators targeting international markets.
Five-Year Licenses and Foreign-Only Access
The proposed licenses would be valid for five years and carry an annual fee of GEL100,000 (approximately €33,370).
Each license would apply to a single website. Therefore, this would replace the current framework that allows two websites under a general online gambling license.
Access would be restricted to foreign nationals and stateless persons. Meanwhile, Georgian citizens would be automatically blocked from using the platforms.
Operators that fail to meet licensing conditions or payment deadlines could face fines of GEL20,000 (approximately €6,670).
Reduced Tax Rate for International Operators
The bill also introduces a preferential tax regime designed to attract international gambling businesses.
Instead of the standard gross gaming revenue (GGR) tax applied to domestic online operators, licensed foreign-facing platforms would pay a 5% tax on GGR. This would be calculated on net revenue after player winnings.
The proposal mirrors tax strategies adopted by jurisdictions such as Malta, Gibraltar, and the Isle of Man. These regions have established themselves as major iGaming hubs through favorable tax regimes.
Unlike those markets, Georgia would limit the reduced tax rate to operators serving foreign customers. In contrast, businesses targeting Georgian residents would remain subject to the standard tax framework.
Government Seeks Investment While Restricting Domestic Gambling
The proposed framework reflects Georgia’s broader policy of attracting foreign investment while maintaining stricter controls on domestic gambling.
The legal gambling age was raised to 25 in 2024, and additional restrictions introduced last year prohibit public-sector employees and individuals with criminal records from gambling. Moreover, more than 1.5 million citizens have reportedly been excluded from gambling in a country with a population of approximately 3.8 million.
Despite these restrictions, major operators, including Flutter Entertainment’s Adjarabet and Betsson Georgia, continue to operate in the local market.
Lawmakers believe the new licensing framework could attract international operators and create skilled jobs in technology and marketing. Further, it could strengthen Georgia’s position as a regional hub for the global iGaming industry.
