Georgia has developed a comprehensive regulatory framework governing gambling activities under the Law of Georgia on Organizing Lotteries, Games of Chance and Other Prize Games (the “Gambling Law”). The legislation expressly recognizes peer-to-peer (“P2P”) gaming – a format in which players compete directly against one another rather than against the operator – and subjects it to specific licensing, technical, and compliance requirements.
Licensing and Regulatory Oversight
All gambling activities in Georgia, including P2P gaming, are subject to mandatory permitting by the Revenue Service under the Ministry of Finance of Georgia. Electronic (system-electronic) gaming permits are issued for fixed terms and are conditional upon ongoing compliance with statutory and regulatory standards.
The Government of Georgia retains broad discretion to impose additional licensing conditions. Furthermore, the Minister of Finance is authorized to adopt supplementary technical standards and compliance requirements applicable to gaming operators. This dynamic regulatory environment requires continuous monitoring and proactive compliance management.
Player Protection and Account Safeguards
Georgian gambling legislation imposes stringent player protection standards designed to promote transparency, security, and responsible gaming.
Each player must be assigned a unique identification number, and in certain formats, operators must enable players to create visible usernames. From a technical perspective, operators are required to implement secure data protection measures, including:
- SSL/TLS 1.2 (or higher) encryption for communications between user devices and gaming platforms;
- Encryption of player data both in transit and at rest;
- Secure account management and identity verification mechanisms.
Dormant account management is strictly regulated. Accounts inactive for one year must be classified as dormant and closed. Prior to treating funds as abandoned, operators must make reasonable efforts — at least 60 days in advance — to contact the player using registered contact details. Any remaining funds must be returned to the player.
Accounts may be suspended or blocked:
- At the player’s request;
- By order of a competent authority; or
- Upon detection of unlawful or suspicious activity.
Fair Play and Anti-Fraud Requirements
A cornerstone of Georgia’s P2P gaming regime is the integrity and fairness of gameplay.
Operators must ensure that player devices do not contain game logic capable of influencing or manipulating outcomes. Systems must also display the date and time of the player’s last login at the beginning of each session, enhancing transparency and user awareness.
In the event of connection loss during gameplay, operators must apply predefined and fair resolution mechanisms. These may include:
- Allowing the player to resume the game from the point of interruption.
- Cancelling the game and refunding stakes after a defined period; or
- Resolving the outcome using a certified random number generator (RNG), where appropriate.
Operators are further required to maintain mechanisms for detecting and reporting suspicious activity, including fraud, collusion, money laundering, and other unlawful conduct, to the relevant authorities.
Operator Obligations and Enforcement
Electronic gaming permit holders are subject to continuous compliance obligations, including:
- Ensuring confidentiality of player winnings and loss data, subject to statutory disclosure requirements;
- Timely payment of applicable fees and taxes;
- Full adherence to regulatory, technical, and reporting standards.
Non-compliance may result in administrative sanctions, including fines of up to GEL 7,000 per violation for electronic gaming permit holders, as well as potential additional regulatory consequences.