The taxation of gambling operators in Georgia is regulated by specific provisions of the Georgian Tax Code and related legislation governing lotteries, gambling, and prize games. Unlike ordinary business activities, gambling operations are subject to special tax rules, including unique methods for determining the taxable base and differentiated tax rates depending on the type of activity and the nationality of participants.
For corporate income tax purposes, Georgian legislation distinguishes between several categories of gambling businesses, each subject to distinct tax treatment. In practice, it is essential to clearly identify the type of gambling activity carried out, as this directly affects the taxable base, applicable tax rate, and reporting obligations.
Taxation of Gaming Machine Salons, Including Online Gambling
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.
The online operation of such games refers to organizing the types of games permitted in a gaming machine salon through the use of the internet, telephone and/or specially arranged electronic means.
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 gaming machine salons (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.
It should also be noted that no additional dividend tax is triggered upon the distribution of profit to a partner.
Taxation of Sportsbooks and Online Sportsbooks
A sportsbook operator must consider 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.
The distribution of profit by a land-based sportsbook operator is exempt from corporate income tax. Accordingly, only 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.
In case of participation by Georgian citizens,the taxable base 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.
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%.
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.
Profit received from the operation of a land-based gambling club is exempt from corporate income tax.
As for online gambling clubs, the taxable object 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.
It should also be noted that no additional dividend tax is triggered upon the distribution of profit to a partner.
Disclaimer: This article is based on Georgian legislation and public information as of February 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.