The Parliament of Georgia has approved, with a third hearing, a package of legislative amendments that will introduce a new regulatory framework for online gambling operators targeting foreign markets. The proposed reforms establish a new category of permits for operators providing online gambling services exclusively to players located outside Georgia, while simultaneously introducing a dedicated fee regime and clarifying the operation of internet domains under gambling permits.
The legislative package consists of amendments to the Law of Georgia on Organising Lotteries, Games of Chance and Games of Winnings (the Gambling Law), the Law of Georgia on License and Permit Fees, the Law of Georgia on Licenses and Permits, and the Law of Georgia on Gambling Business Fees. This follows on from Georgia’s 2023 amendments regulating online gaming, which first introduced the systemic-electronic permit system.
The principal amendment introduces a new regulated activity referred to as the systemic-electronic international organization of games of chance and/or games of winnings.
The new activity covers the organization of casino games, slot-machine games, and sportsbook games through the internet, telephone, or other specially arranged electronic means, provided that participation is available exclusively to persons located outside Georgia. Importantly, Georgian citizens will not be permitted to participate in such games. The proposed framework, therefore, creates a separate licensing regime specifically designed for operators serving international markets without offering gambling services to Georgian consumers, mirroring the citizenship-based distinctions already central to Georgia’s gambling tax exemptions for foreign players.
New Types of Permits
The draft legislation introduces three new categories of permits:
- International organization of casino games in a systematic electronic form;
- International organization of slot-machine games in systemic-electronic form; and
- International organization of sportsbook games in systematic electronic form.
One of the most significant aspects of the reform is that these international permits may be obtained independently and do not require the applicant to hold a corresponding land-based gambling permit, a departure from the fee structure set out in the 2023 amendments, where land-based permit holders benefited from reduced fees.
Internet Domain Rules
The amendments also revise the rules governing internet domains used by gambling operators. Under the amended legislation, each domestic online permit and each international online permit will authorize the operation of only one internet domain name. The law, however, contains a transitional provision protecting existing permit holders. Operators whose current permits authorize the use of up to two internet domains will be entitled to continue operating both domains until the expiration of the relevant permit. This is directly relevant to operators managing payment flows for foreign players, since domain structure often determines how player funds are routed and settled.
Permit Fees
The amendments to the Law of Georgia on Licence and Permit Fees introduce annual permit fees for the newly established international online gambling activities. Each of the three new permits will be subject to an annual fee of GEL 100,000, notably lower than the GEL 5,000,000 and GEL 1,000,000 fees currently applicable to standard online casino and slot salon permits.
Exemption from Gambling Business Fees
The legislative package also proposes amendments to the Law of Georgia on Gambling Business Fees. Operators holding the new international organization permits will be exempt from the obligation to pay gambling business fees that are otherwise applicable to gambling operators under the existing legislative framework, adding to the reduced 5% corporate tax rate already available for foreign-facing gambling revenue.
The proposed amendments represent a significant development in the regulation of Georgia’s gambling sector by creating a dedicated legal framework for international online gambling operations. The introduction of standalone international permits, the establishment of a fixed annual permit fee, the exemption from gambling business fees, and the clarification of internet domain rules collectively indicate an intention to facilitate the operation of online gambling businesses targeting foreign markets while maintaining the prohibition on participation by Georgian citizens.
For the full legislative text as it progresses through Parliament, see the official record on the Parliament of Georgia’s website.