Georgia has unveiled draft legislation that would introduce a new licensing category for international online gambling operators. Submitted to parliament under an accelerated legislative process, the proposed amendments to the law “On the Organisation of Lotteries, Gambling and Profitable Games” would establish dedicated licences for operators offering online slots and sports betting exclusively to foreign customers. The draft legislation, reported by SBC News, includes a 5% gambling tax on gross gaming revenue for these dedicated foreign licences.
The move represents a significant shift in Georgia’s gambling regulatory framework. Currently, the country has a well-established land-based casino industry, particularly in the capital Tbilisi and the Black Sea resort of Batumi, which attracts tourists from neighbouring countries. Online gambling is also regulated, but the new proposal specifically targets operators that serve players outside Georgia. By creating a separate licence category for foreign-facing operators, the government aims to attract international investment and generate additional tax revenue without expanding domestic gambling exposure.
The 5% tax rate on gross gaming revenue is notably lower than the rates applied to domestic online gambling operations. This competitive tax structure is designed to make Georgia an attractive jurisdiction for international operators seeking a regulated base in the Caucasus region. The draft legislation also includes provisions for licensing fees and operational requirements, though specific details on these aspects have not been fully disclosed. The accelerated legislative process suggests that the government is keen to pass the amendments quickly, potentially to capitalise on growing demand for regulated online gambling markets in neighbouring regions.
Georgia’s geographical location at the crossroads of Europe and Asia positions it as a potential hub for online gambling operators targeting markets in the Middle East, Central Asia, and Eastern Europe. The country already has a reputation for a relatively liberal gambling environment, with a well-regulated casino sector that has attracted major international brands. However, the domestic online gambling market has faced challenges, including concerns about problem gambling and regulatory enforcement. The new foreign licence category appears to be a strategic move to separate international operations from domestic concerns, allowing the government to benefit from the industry’s growth while maintaining stricter controls on local gambling.
The draft legislation has been submitted to parliament, and industry stakeholders are closely monitoring its progress. If passed, Georgia would join a growing list of jurisdictions that offer dedicated licences for offshore-facing operators, such as Malta, Gibraltar, and the Isle of Man. However, Georgia’s lower tax rate and proximity to emerging markets could give it a competitive edge. The success of the initiative will depend on the final regulatory framework, including licensing costs, compliance requirements, and the stability of the political and economic environment.
For international operators, the prospect of a Georgian licence with a 5% tax rate is likely to generate significant interest. Many companies are seeking alternative regulated jurisdictions amid tightening regulations in Europe and other regions. Georgia offers a relatively low-cost entry point with access to a skilled workforce and a favourable time zone for serving Eurasian markets. However, operators will need to assess the country’s regulatory track record and the potential for future changes in tax policy or licensing conditions.
The accelerated legislative process indicates that the government is prioritising this reform, possibly to attract operators ahead of competitors. The coming weeks will be critical as parliament debates the amendments. If approved, the new licensing regime could be operational within months, providing a new option for international online gambling companies. The industry will be watching closely to see whether Georgia can establish itself as a credible and stable jurisdiction for foreign-facing operations.