In a calculated effort to draw foreign investment and strengthen its position in the international gambling industry, Georgia has revised its tax laws, introducing a favorable Georgia online gambling tax for foreign operators.
The updated regulations, which came into force on December 1, 2024, significantly ease the tax load for platforms focusing on international users. This makes Georgia a more appealing hub for companies aiming to offer gambling services across borders.
This article explains the main regulatory guidelines and newly introduced tax incentives enacted by the Georgian Parliament for operators planning to engage with foreign markets.
Legal Oversight of Online Gambling in Georgia
Legislative Foundation
The Law of Georgia primarily governs online gambling in Georgia on Organizing Lotteries, Games of Chance, and Other Prize Games (The Gambling Law). This law outlines the permit requirements, compliance obligations, and standards for player protection.
Licensing Requirement
To legally run an online gambling business in Georgia, a company must:
- Obtain an authorization certificate from Random Systems Georgia, confirming adherence to relevant gaming standards
- Apply for a permit from the Revenue Service of Georgia, the country’s official gaming regulator
Domain Use Restrictions
Licensed online operators may use two internet domains:
- One dedicated to Georgian players
- One dedicated to foreign players
This dual-domain setup allows for tax rules to be applied distinctly to each user base.
Licensing Costs for Online Platforms
The fee structure varies depending on the type of online gambling operation and whether the operator holds a land-based permit (physical location).
- Online slot salon: Annual permit fee is GEL 1,000,000 per year
- Online casino: Annual permit fee is GEL 5,000,000 per year
Additional Fees for Sportsbook Operators
To run an online sportsbook for foreign players, companies must also operate a land-based sportsbook facility within Georgia.
- Land-based sportsbook: Annual fee between GEL30,000 to GEL 300,000, depending on location
- Online sportsbook: Annual fee of GEL 100,000
In addition, sportsbook operators must pay a quarterly fee ranging from GEL 250,000 to 300,000, again depending on the physical location within Georgia.
Tax Guidelines for Gambling License Holders
Tax regulations for online gambling vary by the type of operation and the origin of the players.
Taxation of Slot Salons
For land-based slot salons, corporate income tax is 15% of Gross Gaming Revenue (GGR).
However, under the new amendments, the government now taxes GGR from foreign players at only 5%. Additionally, it waives the standard 5% withholding tax on withdrawals by foreign players, further reducing their tax burden.
Taxation for Sportsbooks
Sportsbook operators typically pay 7% tax on the total bets placed. However, under the Amendments, online sportsbooks that target foreign players now pay a reduced 5% corporate tax on GGR instead of total bets.
Withdrawals by foreign players are also exempt from the 5% personal income withholding tax, making the system more attractive to international users.
Taxation for Casinos
Online casinos are taxed based on GGR. While Georgian player GGR is taxed at 15%, GGR from foreign players is now taxed at 5%. Similarly, foreign players are exempt from the 5% withholding tax on withdrawals.
A Competitive Edge in the Global Market
The 2024 legislative update marks a major shift in Georgia’s strategy to become a prime jurisdiction for international online gambling operators. With tailored tax breaks, operational clarity, and domain separation rules, the country is presenting a compelling case for global expansion.
As these new rules take effect, gambling businesses seeking a more favorable tax environment should see Georgia as a viable base for cross-border operations.
Looking to Launch or Relocate Your Gambling Operations to Georgia?
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Our experienced legal team at Andersen is ready to guide you through every step, from obtaining permits to ensuring tax compliance under the new regulations. Contact us today to explore how Georgia’s favorable tax regime can benefit your business.