Prime Minister Irakli Garibashvili of Georgia recently unveiled significant changes to the country’s taxation policy regarding the gambling sector. This adjustment aims to address concerns surrounding the rapid growth of the industry in Georgia. It forms part of the government’s broader strategy to mitigate the social impact of gambling and boost state revenues, which could impact local and international gambling operators in the Georgian market.
Taxation Policy Revisions:
Addressing Industry Expansion: The tax revision is a response to the rapid expansion of the gambling sector in Georgia, with a focus on regulating its growth.
Social Impact Mitigation: The government’s strategy extends to mitigating the social impact of gambling through various measures, including the recent tax changes.
Revenue Increase: These taxation changes are projected to contribute an additional 400 million GEL (approximately $147 million) to the national budget, aiding government initiatives.
Government Initiatives and Market Developments:
Previous Measures: The government had taken earlier actions, including banning gambling advertising and imposing restrictions on citizens under 25 years of age, as part of its response to the gambling industry’s expansion.
Online Gaming Market: Georgia has gained prominence as a destination for online gaming companies. For instance, Aviatrix has secured certification to offer its crash game in the Georgian market.
CT Interactive: Global casino content provider CT Interactive has certified over 190 games for the Georgian market, expanding local operators’ access to its exclusive portfolio.
Bragg Gaming: Through its partnership with Adjarabet, Bragg Gaming is set to provide its proprietary and third-party content to players in Georgia.
The change in Georgia’s taxation policy for the gambling industry reflects the government’s commitment to managing the sector’s rapid growth and its social consequences. These adjustments are expected to bolster state revenues while impacting both local and international gambling operators. The Georgian market’s allure for online gaming companies is evident, with various entities making strategic moves to capitalize on its potential.