For taxation purposes, the Tax Code differentiates between several types of gambling businesses. The income derived from organizing each type of gambling activity is subject to different taxation rules. Accordingly, it is important to distinguish each of the following:
- Slot salons and online gambling;
- sportsbooks and online sportsbooks;
- gambling clubs.
Taxation of Slot Salons and Online Gambling
It is important to clarify what is meant by a slot salon. According to the Law of Georgia on the Organization of Lotteries, Gambling, and Winning Games, a slot salon is defined as a specially arranged building/structure or a part thereof, where the organizer carries out gambling activities using gaming machines.
A gaming machine is an electronic, mechanical, or electromechanical device, or another specialized device, that has a specific program and/or mechanism allowing for cash winnings or the determination of cash winnings.
The online operation of such games refers to organizing the types of games permitted in a slot salon through the use of the internet, telephone, and/or specially arranged electronic means.
Corporate Income Tax (CIT) for the Organizers
Special rules apply for determining the taxable base under the corporate income tax. The taxable base is the difference between the bets received from players and the winnings paid out to players, known as Gross Gaming Revenue (GGR).
Tax Rate – For income derived from the operation of slot salons and online gambling, the tax rate is 20%, and in certain cases, 5%. Accordingly, the amount payable to the state budget will be 20% or 5% of the GGR. This depends on the nationality of the participants in the games and the format in which the games were conducted.
If foreign citizens participate in gambling activities organized in a systematic electronic format (online), the taxable profit of the organizer from this specific part of the activity is taxed at a rate of 5%. In any other cases taxable base is 20% of the GGR.
Notably, Georgian companies are generally subject to CIT upon the profit distribution. However, since there are special rules for gambling companies, when they distribute profits generated through such gambling activities, which were already taxed as stated above, such distribution is not taxed further upon distribution. For the purpose of identifying the amount of profit derived from the given activity, it is considered that, upon the distribution of dividends by a person, the amount generated through already taxed gambling is distributed first. which means that the profit won’t be taxed the second time upon the distribution. It should also be noted that no additional dividend tax is triggered upon the distribution of profit to a partner.
Personal Income Tax (PIT) for the Players
Income received by an individual from participation in slot salons and online gambling activities is subject to withholding at the source. Accordingly, the operator is obligated to act as a tax agent.
For the purpose of taxing income received through participation in gambling activities, the taxable object for individuals receiving income from slot salons is the amount withdrawn by the individual from the organizer of the slot salon. The applicable tax rate is 5%.
In the case of systemic-electronic (online) gambling, the player’s citizenship becomes an important factor. The taxable object is the amount withdrawn from the gambling account, and the tax rate is also 5%. This regulation applies to citizens of Georgia, whereas foreign citizens are exempt from taxation on such income.
Taxation of Sportsbooks and Online Sportsbooks
A sportsbook operator must take into account two main factors: first, the form in which the sportsbook is organized – whether online or land-based, and second, the country of citizenship of the participants from whom the sportsbook’s profit is derived.
Corporate Income Tax (CIT) for the Organizers
A land-based sportsbook operator is exempt from corporate income tax. Accordingly, the taxation regime applicable to online (system-based/electronic) sportsbook operators must be determined.
The taxation regime differs depending on the country of citizenship of the individuals from whom the sportsbook operator earns profit. First, let us consider the rules applicable to profit generated through the participation of Georgian citizens.
Participation of Georgian citizens – The taxable object for an online sportsbook company is the total amount of bets received during each reporting month, which is subject to a 7% tax rate. In this case, the person is obliged to submit a tax return, in the form approved by the Minister of Finance of Georgia, no later than the 15th day of the month following the reporting month, and to pay the respective tax within the same timeframe.
This rule does not apply to the profit received by the organizer of system-based (electronic) sportsbook activities from the participation of foreign citizens.
Participation of foreign citizens – With respect to the profit earned by the organizer of system-based sportsbook activities from the participation of foreign citizens, the taxable base is not the total amount of bets received, but rather the difference between the bets received from foreign players and the winnings paid out to them. The applicable tax rate in this case is 5%.
Personal Income Tax (PIT) for the Players
Income received by an individual from participation in online sportsbook activities is subject to withholding at the source. Accordingly, the online sportsbook operator is obligated to act as a tax agent. The regulation differs for land-based sportsbook operators, who are obligated to withhold an individual’s income upon their request.
Foreign individual participants are exempt from personal income tax on income derived from participation in online sportsbook activities. Income received from participation in land-based sportsbooks is subject to a 20% personal income tax. The taxable base is the amount of winnings.
For Georgian citizens participating in online sportsbooks, the taxable base is the amount withdrawn by the individual from their account, and the applicable tax rate is 5%.
Gambling Club
First, it is necessary to define what is meant by gambling clubs under Georgian legislation. The Law of Georgia on the Organization of Lotteries, Gambling, and Winning Games provides a legal definition of a gambling club, according to which a gambling club is a specially arranged building/structure or a part thereof, where the organizer conducts card games using club tables.
Corporate Income Tax (CIT) for the Organizers
Profit received from the operation of a land-based gambling club is exempt from corporate income tax.
The taxable object for income received from the operation of an online gambling club is the difference between the bets received from players and the winnings paid out to them, known as Gross Gaming Revenue (GGR).
Tax Rate – For income derived from the operation of a Gambling club (including online operations), the tax rate is 20%, and in certain cases, 5%. Accordingly, the amount payable to the state budget will be 20% or 5% of the GGR. This depends on the nationality of the participants in the games and the format in which the games were conducted.
If foreign citizens participate in gambling activities organized in a systematic electronic format (online), the taxable profit of the organizer from this specific part of the activity is taxed at a rate of 5%. In any other cases taxable base is 20% of the GGR.
Personal Income Tax (PIT) for the Players
Income received by an individual from participation in a gambling club is subject to withholding at the source. In the case of online gambling organizers, the obligation to act as a tax agent arises automatically. For land-based gambling organizers, this obligation arises only if requested by the individual participant.
Foreign citizens are exempt from taxation on income received from participation in online gambling clubs, while for the purpose of determining the income received by citizens of Georgia, the taxable object is the amount withdrawn from the gambling account, which is taxed at a rate of 5%.
As for income received from participation in land-based gambling clubs, the taxable base is the amount of winnings, and the applicable tax rate is 20%.
The taxation of Georgia’s gambling sector is comprehensive and activity-specific, reflecting the government’s effort to ensure transparency and fairness in one of the country’s most dynamic industries.
Given the varying rates, formats, and participant-based distinctions, both operators and individuals must maintain accurate records and tax compliance to avoid penalties and ensure smooth operations.
About Andersen in Georgia
At Andersen Georgia, we advise gambling operators, technology platforms, and investors on the full spectrum of tax obligations applicable to the gambling and betting industry in Georgia.
Our team assists with licensing, compliance reviews, profit structuring, and tax optimization strategies, including guidance on cross-border taxation and foreign participant income rules.
We also provide valuation and transaction advisory services for companies active in the gaming and entertainment sector.
Disclaimer: This article is based on Georgian legislation and public information as of November 2025. It is intended for informational purposes only and does not constitute legal or tax advice. Readers should seek professional guidance tailored to their specific circumstances before taking action based on this information.