The government of Georgia has introduced draft legislation aimed at creating a new online gambling licensing framework specifically for operators targeting international customers. The bill, submitted to parliament under an accelerated procedure, proposes a reduced tax rate on gross gaming revenue for licensees that serve only foreign players. This move is designed to attract international gambling operators to the country and boost its position in the global iGaming market.
Under the proposed framework, Georgian online gambling licensees that exclusively cater to foreign customers would benefit from a lower tax burden compared to those serving domestic players. The reduced tax rate on gross gaming revenue is intended to make Georgia a more competitive jurisdiction for international operators, similar to other hubs like Malta, Gibraltar, and the Isle of Man. The legislation is part of a broader effort to modernize the country’s gambling regulations and create a clear distinction between domestic and international operations.
The draft bill outlines specific requirements for operators seeking the new license type, including proof of targeting only foreign customers and compliance with anti-money laundering standards. The government expects that the new regime will generate additional revenue through licensing fees and taxes, while also creating jobs and fostering technological expertise in the local iGaming sector. The accelerated parliamentary procedure suggests that the government aims to pass the legislation quickly to capitalize on current market opportunities.
Georgia already has a regulated gambling market for land-based and online operations serving domestic players, but the new framework is a strategic shift to attract international business. The country’s favorable geographic location, relatively low operating costs, and improving digital infrastructure are seen as advantages. However, the success of the initiative will depend on the final tax rate and regulatory conditions, which must be competitive with established jurisdictions.
Industry observers note that several other countries, including Sweden and the Netherlands, have recently tightened their gambling regulations, creating a potential supply of operators seeking new markets. Georgia’s move could position it as an alternative for companies looking for a stable regulatory environment with lower taxes. The bill also includes provisions for player protection and responsible gambling measures, though these are primarily aimed at domestic operators.
The Georgian government has not yet disclosed the exact proposed tax rate, but it is expected to be significantly lower than the current rate for domestic operators. The legislation is still in its early stages and will need to pass through parliamentary committees and a final vote before becoming law. If approved, the new licensing regime could come into effect within the next few months.
This development is part of a broader trend of countries in the Caucasus and Eastern Europe seeking to attract international gambling operators. Armenia and Ukraine have also made regulatory changes in recent years to boost their iGaming sectors. Georgia’s move could intensify competition among these jurisdictions for foreign investment and operator licenses.
For international operators, the new Georgian license could offer a cost-effective entry point into the European and Asian markets, given the country’s strategic location. However, operators will need to carefully assess the regulatory requirements, including any restrictions on marketing to Georgian residents and the need to establish a physical presence in the country. The reduced tax rate is a key incentive, but other factors such as banking infrastructure, internet connectivity, and political stability will also influence decisions.
The Georgian government is expected to engage with industry stakeholders during the legislative process to refine the framework. The outcome of the parliamentary debate will be closely watched by the international iGaming community, as it could set a precedent for other countries in the region. If successful, Georgia could emerge as a new hub for online gambling operations targeting global markets.