Georgia’s Parliament has approved legislation allowing casinos to organize international gambling tournaments.
The bill, introduced by lawmakers from the ruling Georgian Dream party, passed its final reading with 73 votes in favour and five against, Georgia Today reported. Parliament debated and approved the legislation over two plenary sessions.
During the deliberations, lawmakers raised the minimum share of foreign participants from 70% to 80%. They also removed a proposed provision that would have imposed a GEL 150,000 (US$57,815) fine on organizers holding international gambling tournaments without authorization.
Under the approved law, an international gambling tournament is defined as a competition organized by a casino with a prize pool guaranteed in advance by the organizer and at least 80% of participants coming from overseas.
Organizers will be exempt from the gambling business fee on gaming tables used exclusively for international tournaments if the prize pool exceeds GEL 3 million (US$1.16 million).
The legislation also allows organizers to generate revenue from these tournaments, which may be held at licensed casino premises or other venues.
Individuals’ taxable income from participating in international gambling tournaments will be subject to a 20% tax. However, foreign nationals participating in tournaments with prize pools exceeding GEL 3 million (US$1.16 million) will be exempt from taxation on their winnings.
Organizers that violate licensing requirements for international gambling tournaments will face a GEL 50,000 fine (US$19,272).
The legislation has drawn criticism from the Georgian Orthodox Church Patriarchate and the Public Defender. During the second reading, members of People’s Power, a party aligned with the parliamentary majority, questioned the need to fast-track the bill.
Eka Sepashvili raised concerns that the explanatory note accompanying the legislation did not assess its potential social costs. “We are talking about the possibility that the bill could lead to the undesirable promotion of these games, which are one of the significant problems facing society,” he said.
The For Georgia parliamentary faction voted against the legislation.