Georgia Increases Gambling Tax to 15% and Outlines Additional Reforms
In a significant move, the Georgian government has introduced a series of measures aimed at regulating the gambling market and mitigating gambling-related harm. The changes, announced by Prime Minister Irakli Garibashvili on November 3, include increasing taxes on the gambling sector as part of broader tax policy reforms.
Last year, the total turnover of the gambling sector in Georgia increased from 48 billion GEL to 52 billion GEL. In an effort to secure government revenue and promote compliance, the gambling tax is being increased from 10% to 15%. This increase is considered a catastrophic indicator by Garibashvili, suggesting the need for such measures.
The payout of winnings tax will also be reduced from 5% to 2%, a move intended to encourage more participation in the regulated market. The government has announced further measures to contain the gambling market, with the focus on strengthening tax administration and expanding taxpayer office coverage.
One of the most noticeable changes is the age restriction, with participation in gambling now allowed only from the age of 25. This excludes approximately 1.5 million people, a decision that Garibashvili believes has significantly reduced gambling-related damages, particularly among the younger generation.
In addition, a ban on gambling advertising was introduced in 2022, a move aimed at reducing the influence of gambling in the country. The Georgian government has also licensed over 190 games for the local market, with Aviatrix, an online casino and sports betting operator, acquiring a license to offer gambling in Georgia.
Bragg Gaming is reportedly taking steps to roll out its online casino offerings in Georgia, further expanding the market. However, the specific impact of these new laws and the higher tax on the gambling market remains undocumented. The government has not yet disclosed the details of the market reactions or changes in gambling activity due to these regulatory changes.
The Georgian government is expected to receive an additional budget of 400 million GEL from the additional revenues generated by these tax increases. The emphasis on tax reforms and better governance suggests an intent to formalize and control the sector more strictly, potentially increasing the operational costs for gambling businesses in Georgia.
While specific new regulatory interventions directly targeting responsible gambling programs or harm prevention campaigns were not detailed in the latest available sources, the stronger tax regime may indirectly influence the sector by encouraging more responsible practices. The government's focus on reducing gambling-related harm in the country is evident, with President Garibashvili stressing the urgent need to reduce the number of such harms.
In summary, the Georgian government's recent efforts are focused on tax policy reforms to regulate the gambling sector financially and improve compliance, with projected fiscal benefits. However, the direct effects of these measures on the industry and the reduction of gambling-related harm remain undocumented in the sources consulted.
Online casinos in Germany may possibly consider entering the Georgian market given the government's focus on strengthening tax administration and expanding taxpayer office coverage, aiming to formalize and control the gambling sector more strictly. This increasing tax regime and age restriction in Georgia might impact the finance aspect of the casino-and-gambling industry within the country.
