The taxation of sportsbook operators in Georgia is regulated by the Tax Code of Georgia and depends on two key factors: the form in which the sportsbook is organized (land-based or online) and the country of citizenship of the participants from whom the operator derives profit.
These factors directly affect the applicable corporate income tax regime, the method for determining the taxable base, and tax agent obligations related to player winnings.
Corporate Income Tax (CIT)
The distribution of profit by a land-based sportsbook operator is exempt from corporate income tax (0% 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.
Participation of Georgian citizens
The taxable object 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%.
For a deeper understanding of how gambling-related income is treated under Georgian tax legislation, including applicable exemptions and special rules, you can also read our article on Gambling Tax Exemptions in Georgia, which provides further clarification on how the Tax Code applies to different types of gambling activities.
Tax Agent Obligations for Organizers
The taxation of player income and the obligations of sportsbook operators also vary depending on whether the activity is conducted online or in a land-based format.
The applicable personal income tax treatment differs depending on the status of the player. Income received by foreign individuals from participation in online sportsbook activities is fully exempt from personal income tax in Georgia.
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%, representing a preferential tax regime.
For online sportsbook activities, income received by individuals is subject to withholding at source, and the operator acts as a tax agent. This means that the operator is responsible for withholding and remitting the applicable tax on behalf of the player.
In contrast, income received from participation in land-based sportsbook activities is subject to 20% personal income tax, with the taxable base being the amount of winnings. In this case, the operator is required to withhold personal income tax only upon the request of the individual.
Disclaimer: This article is based on Georgian legislation and public information as of April 2026. It is intended for informational purposes only and does not constitute legal or tax advice.