Georgia has introduced new legislation designed to create a specialized licensing framework for international online gambling operators, which includes a notably reduced tax rate compared to what domestic companies face. This proposal, aimed at amending the existing "On the Organisation of Lotteries, Gambling and Profitable Games" law, has been submitted to Parliament for expedited consideration.
Under the new regulations, if approved, operators would be permitted to provide both online casino services and sports betting specifically to users outside of Georgia, as access from Georgian citizens would be automatically restricted. The tax structure proposed would see these international online operators paying a 5% tax on their gross gaming revenue (GGR) from international clients, in stark contrast to the current 20% tax imposed on operators catering to domestic users.
The license for international online gambling operators would be valid for five years, incurring a fee of 100,000 GEL each year, with potential fines for breaches or late payments capped at 20,000 GEL. Furthermore, the proposed legislation seeks to limit internet access by allowing only one website per operator license, a reduction from the previous allowance of two sites.
Crucially, this initiative sets up separate domestic and international markets, keeping the 20% tax rate for domestic operators while applying the more favorable 5% rate for their international counterparts.
