The operation of land-based casinos in Georgia is subject to a specific taxation framework established under the Georgian Tax Code. Due to the particular nature of gambling activities conducted in physical venues, the tax treatment of these businesses differs from the rules generally applicable to other commercial activities.
Georgian legislation provides separate tax rules for various types of land-based gambling activities, including gaming machine salons, sportsbooks, and gambling clubs. The applicable tax obligations depend on the form of the activity carried out and determine how the taxable base is calculated, which tax rates apply, and what obligations arise for both casino operators and participating individuals.
Gaming Machine Salons
It is important to clarify what is meant by a gaming machine salon. According to the Law of Georgia on the Organization of Lotteries, Gambling, and Winning Games, a gaming machine 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.
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).
For income derived from the operation of land-based gaming machine salons, the tax rate is 20% of the GGR.
Personal Income Tax (PIT) for the Players
Income received by an individual from participation in gaming machine salons 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in gambling activities, the taxable object for individuals receiving income from gaming machine salons is the amount withdrawn by the individual from the organizer of the gaming machine salon. The applicable tax rate is 5%.
Sportsbooks
A sportsbook operator must take into account the form in which the sportsbook is organized, whether it is land-based or online. The rules described below apply to land-based sportsbooks.
Corporate Income Tax (CIT) for the Organizers
The profit derived and distributed by a land-based sportsbook operator is fully exempt from corporate income tax.
Personal Income Tax (PIT) for the Players
Income received from participation in land-based sportsbooks is subject to 20% personal income tax. The taxable base is the amount of winnings. Land-based sportsbook operators are obligated to withhold an individual’s income only upon their request.
Gambling Clubs
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
The profit derived and distributed by a land-based gambling club operator is fully exempt from corporate income tax.
Personal Income Tax (PIT) for the Players
Income received by an individual from participation in a gambling club is subject 20% personal income tax. The taxable base is the amount of winnings. For land-based gambling, organizers are obligated to withhold an individual’s income only upon their request.
Income received from participation in land-based gambling clubs is subject to 20% personal income tax. The taxable base is the amount of winnings.
The taxation of Georgia’s gambling sector is comprehensive and activity-specific. Different taxation rules apply depending on the type of gambling activity conducted in a land-based format.
Given the varying taxation rules applicable to gaming machine salons, sportsbooks, and gambling clubs, both operators and individuals must maintain accurate records and ensure proper tax compliance in order to avoid penalties and ensure smooth operations.
We assist clients with regulatory and tax matters related to the casino business in Georgia, including licensing procedures, tax compliance for gambling operators, profit structuring, and the application of relevant tax rules under the Tax Code of Georgia. Our specialists also advise on cross-border taxation issues and the tax treatment of income derived from foreign participants in gambling activities.
Disclaimer: This article is based on Georgian legislation and public information as of March 2026. 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.