The Georgian Law on Advertising (the Law) sets out a comprehensive framework. It governs the production, placement, and dissemination of advertisements, with specific and stringent provisions applicable to gambling operators.
This article examines the principal advertising challenges faced by gambling companies in Georgia. It draws on the key legal requirements, restrictions, and compliance risks established by the Law.
Key Legal Provisions Affecting Gambling Advertising
The following are the principal legal provisions and restrictions that gambling companies must navigate:
General Prohibition on Gambling Advertising
Under the Law, advertising is legally defined by several key elements. It involves the dissemination of information. This information can concern goods, services, works, individuals or entities, as well as ideas or initiatives. This information may be spread through any medium. Examples include print, broadcast, digital platforms, or outdoor displays, and can take various forms, including text, images, audio, or video. The intended recipients of the advertising must be an “indefinite circle of persons”.
This means it targets the general public rather than specific individuals or private groups. The core purpose of advertising is to generate and sustain interest in its subject. It also supports the promotion, sale, or acceptance of the product, service, or idea being advertised.
For gambling companies, the definition of advertising is particularly significant. This is due to the strict regulatory regime governing gambling-related advertising in Georgia. The general definition applies, meaning that any information about gambling services, operators, or related initiatives, disseminated by any means and intended for the general public, constitutes advertising.
The Law imposes a general prohibition on the dissemination of gambling-related advertisements. This applies to any form or by any means, including via electronic communication networks. This blanket ban is subject to a limited set of exceptions, which are strictly defined and interpreted.
Permitted Exceptions
Gambling advertising is only permitted in the following circumstances:
- On the Licensed Website: Advertising may be placed on the website where the operator is licensed to organise gambling activities in a systematic electronic format.
- Sponsorship of Sports: Advertising is allowed at a sports event, sports competition, or at a sports organization’s venue, where such display is a condition of sponsorship.
- Within Gambling Venues: It is visually placed on premises where gambling, totalizator, lottery, or bingo games are legally conducted, provided that the advertisement does not exceed 10 square meters and is the only such advertisement on the premises.
- At International Transit Points: Advertising may be placed within the territory of international airports or border customs checkpoints open to international traffic.
Learn about legal payment options and compliance for foreign players on Georgian gambling platforms in our detailed guide here.
Sponsorship Restrictions
While sponsorship of sports is generally permitted under the Law. Gambling companies must ensure that any sponsorship activity does not circumvent the advertising restrictions. The Law treats sponsorship contributions as advertising expenditure. Both the sponsor and the sponsored party are considered advertising clients and disseminators, respectively.
Risks and Compliance Considerations
Given the strict regulatory environment, gambling companies operating in Georgia face a range of legal and compliance risks. These risks relate specifically to advertising. The following are the principal challenges and considerations:
Risk of Unintentional Breach
The broad scope of the advertising ban creates a significant risk of unintentional non-compliance.
The limited and narrowly defined exceptions increase this risk. For example, advertising that is visible from outside a gambling venue, or that appears on third-party websites or social media platforms, may be deemed unlawful.
Enforcement and Sanctions
The Georgian Administrative Offenses Code establishes prohibitions against the unauthorized dissemination or placement of advertisements and signage related to gambling, totalizator, lottery, or bingo activities. These provisions apply to all operators and entities that engage in advertising such services without full compliance with the requirements of the Law.
A person or entity found in violation of these provisions is subject to an administrative fine of 10,000 GEL for a first offence. In the event of a repeated violation of the same nature, the applicable penalty is increased to 20,000 GEL for each subsequent breach.
Third-Party Liability
The Law holds not only the advertiser but also the producer and disseminator of advertising liable for breaches. This means that media outlets, website operators, and other third parties may also face sanctions if they facilitate the dissemination of unlawful gambling advertisements.
Compliance
To mitigate the risks associated with gambling advertising in Georgia, companies should adopt a proactive and comprehensive compliance strategy, including the legal review of all advertising materials. All advertising content and placement strategies should be reviewed by legal counsel to ensure compliance with the Law’s requirements and exceptions.
Stay compliant and avoid fines. Consult our legal experts on gambling advertising in Georgia today.