The 4H View: Everything you need to know about Georgia

EGR has partnered with 4H Agency to bring its readers a series of long-form articles on the requirements and key facts and figures for a host of emerging markets throughout the world.

Tapping into 4H’s talent pool of experts, the articles will outline the regulatory framework and entry requirements for interested parties, as well as an insider’s view on how the market could shape up in the coming years.

Here, the series continues with Georgia, with commentary from 4H partner and head of consulting department, Ivan Kurochkin.

Market overview

Georgia, located at the intersection of Eastern Europe and Western Asia, has established itself as a key player in the region. The country has a population of approximately 3.7 million people and a GDP of around $30bn. Despite its relatively small market size, Georgia has a well-developed gambling sector, attracting both domestic and foreign operators.

Gambling in Georgia is fully regulated, with all major verticals, including land-based casinos, slot machine halls, sports betting, online casinos and lotteries legally recognised. The regulatory framework has evolved over the years, aiming to balance industry growth with responsible gambling measures. Recent legislative amendments have introduced additional restrictions on advertising, taxation changes and measures to improve oversight and compliance.

Regulations

The primary legislation governing the gambling industry in Georgia is the Law on Organizing Lotteries, Games of Chance, and Other Prize Games (2005), commonly referred to as the Gambling Law. Other key laws include:

• Law on Licence and Permit Fees (2005) – regulates the costs associated with obtaining gambling licences.
• Law on Gaming Business Fees (2006) – establishes specific gambling-related taxation.
• Law on Advertising (1998) and Law on Broadcasting (2004) – sets advertising restrictions for gambling services.
• Law on Facilitating the Suppression of Money Laundering and Terrorism Financing (2019) – regulates AML compliance requirements for gambling operators.

Additionally, technical regulations and subsidiary legislation govern compliance obligations, ensuring operational transparency and responsible gambling practices.

Regulatory bodies

Several regulatory bodies oversee Georgia’s gambling sector:

• The Revenue Service under the Ministry of Finance – the primary gambling regulator responsible for licensing and compliance enforcement.
• Financial Monitoring Service of Georgia – supervises AML compliance within the industry.
• Georgian National Communications Commission – regulates advertising and media-related restrictions.

Licences and market entry

Types of licences

Gambling licences in Georgia are issued for a five-year period and are available for both land-based and online operators. The country offers two main categories of licence:

• Universal licences – for land-based operators, allowing them to run online operations as well.
• Online-only licences – specifically for digital gambling businesses.

Recent amendments to the Gambling Law have expanded the scope of Georgian online-only gambling licences to better accommodate foreign markets. Each online licence can now cover up to two domains: one for Georgian players and one for foreign users. If only one domain is used, it may serve both groups.

Before these changes, licences were limited to a single domain without clear distinctions regarding player nationality. This change enables Georgian online licences to function as offshore licences, allowing operators to serve exclusively foreign players without targeting the local market.

Licensing verticals include:

• Casino (land-based and online operations)
• Slot Machine Hall (land-based and online slots)
• Betting (land-based and online sports betting)
• Online Casino (separate from land-based casino licensing)
• Online Slots (separate from land-based slot hall licensing)
• Lottery – Currently, the National Lottery of Georgia is the authorised monopoly operator in the country.

Additionally, casino licence or slot machine hall licence holders may obtain a separate poker club licence.

B2B companies are also subject to a separate B2B licence to supply games, gaming platforms, RNG software and other ‘essential products or services’.

Licence requirements

• Only Georgian-registered companies may apply for a gambling licence.
• Applicants must demonstrate operational capacity and financial stability.
• All gambling software and platforms must be certified and connected to the state monitoring system.
• Foreign operators must establish a local presence and comply with economic substance requirements.

Costs and taxation

As a general rule, licensing costs in Georgia are dependent on the location.

• Casino licence – from $35,000 up to $1.8m annually, plus additional $35,000 for joint online casino operations.
• Slot machine hall licence – from $18,000 up to $355,000 annually, plus $35,000 for joint online slots operations.
• Betting licence – varies from $10,600 up to $106,000 annually.
• Online casino licence – $1.8 million annually.
• Online slots license – $355,000 annually, intependent of a land-based permit.

Additionally, there are quarterly fees payable by the following verticals:

• Online licensees tied with land-based licences and separate online casino licences pay a quarterly gambling business fee from $89,000 up to $106,000.
• Land-based casino licensees pay from $7,000 up to $14,000.
• Fees payable for each gaming machine ranges from $700 up to $1,400.

Tax

For online operators:

• GGR tax – 15% for all online gambling except online betting.
• Tax on deposits – 7% for online betting operators.

For land-based operators:

• Slot machine halls – 15% GGR tax.
• Casinos and betting shops – exempt from GGR tax.

Moreover, from 1 December 2024, tax rates were adjusted the following way:

• 5% GGR on revenues from foreign players.
• 15% GGR on revenues from Georgian players.

Winnings tax:

• Georgian players – 5% tax on withdrawals from slot halls and online casinos.
• Foreign players – winnings are tax-free.

Advertising and marketing restrictions

Gambling advertising is subject to strict regulations in Georgia:

• Out-of-home advertising is only allowed at licensed gambling facilities and international airports.
• TV and radio ads are restricted between 6am and 12am, except for high-public-interest broadcasts.
• Online advertising is permitted only on licensed operators’ websites.
• Sponsorships are allowed and widely used as an alternative marketing channel.
• Gambling ads must not promote betting as a way to make money or target minors.

Violations result in fines or potential licence suspensions.

AML and RG regulations

AML requirements include:

• KYC procedures for all players, including identity verification and PEP screening.
• Enhanced due diligence for accounts exceeding GEL5,000 (~$1,800) in turnover.
• Mandatory reporting of suspicious transactions to the Financial Monitoring Service.

Responsible gambling regulations:

• Minimum age: 25 for Georgian citizens, 18 for foreigners.
• Self-exclusion program: Players can request exclusion or set deposit limits.
• Operators must display responsible gambling information on websites and premises.

Recent and Future Developments

The Georgian gambling market is well-established and continues to evolve with regulatory updates. Key developments include:

• As mentioned abov, “foreigners-only” online gambling websites were introduced, allowing operators to use a single licence for separate Georgian and international platforms.
• Potential refinements to advertising laws to align with international best practices.
• Stronger responsible gambling measures under discussion.

While the industry remains stable, potential risks include overregulation, particularly in advertising and betting limits, which could impact market growth.

The 4H view

Georgia has become one of the most attractive destinations for gambling operators, offering a clear regulatory framework, reasonable tax policies and a business-friendly environment. While licence fees can be high, they are balanced by manageable tax rates and a straightforward legal system that makes it easier for companies to operate.

Some of the biggest global players, such as Flutter, Entain and Betsson, have already set up shop here and continue to thrive. This highlights not only Georgia’s appeal as a gambling hub but also its potential for long-term stability and growth.

Another major advantage is Georgia’s relatively low bureaucratic barriers, making it easier for foreign operators to enter the market. The country also boasts a high proportion of engaged gamblers, meaning demand for betting and casino products remains strong.

A gamechanging update came on 1 June 2024, when Georgia overhauled its licensing system. Previously, only land-based operators could obtain online gambling licences. With the new rules, online licences are now issued independently, allowing foreign operators to enter the market without having to invest in a physical presence. This shift makes Georgia an even more attractive jurisdiction for companies looking to expand in the region.

By separating land-based and online licensing, Georgia has improved regulatory oversight while also opening new opportunities for market participants. The government remains committed to refining the industry’s rules, ensuring a well-balanced and sustainable gambling sector that benefits both businesses and players.

Ivan Kurochkin is one of the founders of 4H Agency, partner and head of the Eastern Europe desk at 4H.

After 10+ years’ experience in consulting every type of clients from the testing laboratories to global operators and B2B providers on a variety of matters related to the gambling operations, Ivan has proven himself to be a business-oriented multi-jurisdictional advisor for entering new markets across the globe.

Ivan’s background helps him to choose the best and most efficient scenarios for expansion to new market or for bringing existing operations of 4H’s clients to a significantly new level. Ivan is also an expert in the field of responsible gambling and frequent author for industry media.