Georgia has put forward new legislation aimed at establishing a dedicated licensing structure specifically for international online gambling operators, which would feature a significantly lower tax rate than what currently exists for companies that serve exclusively international users.
The proposed changes to the “On the Organisation of Lotteries, Gambling and Profitable Games” law have been submitted to Parliament under an expedited process.
If the changes to Georgia’s gambling legislation are passed, operators would have the ability to offer both online casino and sports betting to non-Georgian users, as all Georgian citizen access would automatically be blocked.
There will be a preferential tax structure for online operators, who will pay a 5% tax on their GGR from international players, compared to the current 20% tax on GGR applicable to operators that serve domestic users.
An international online gambling operator license will be valid for five years, and will cost a fee of 100,000 GEL annually (with a maximum fine of 20,000 GEL for a breach or late payment).
The proposed changes will restrict internet access by limiting an operator to only one website per license, compared to the current regulations allowing for two sites per license.
Importantly, the Georgia proposal establishes discrete domestic and international markets, thus maintaining the domestic operators’ tax rate at 20%, while the international operators would have the 5% tax rate.