In a decisive move to curb the rampant growth of gambling, Georgia has announced a comprehensive reform package that will elevate gambling oversight and significantly increase taxes on the industry. This bold initiative is set to take effect from July 1st, 2024, and represents the most radical policy shake-up since the reforms of 2021.
The Georgian government’s decision comes in response to alarming statistics indicating a catastrophic rise in gambling participation. The total turnover in the Georgian gambling industry has soared from 48 billion to 52 billion Lari in just one year, marking a rapid 14% increase. This surge has prompted legislators to take stringent action to regulate the sector more effectively.
Under the new reforms, all forms of gaming in unlicensed digital or physical venues, including internet cafes, bars, and shops, will be prohibited. Violators will face severe penalties, with fines reaching $30,000 per breach, a five-fold increase from previous fines. The government is determined to eradicate unauthorized gaming and ensure that only licensed operators, who will now face amplified compliance obligations, can offer gambling services.
Licensed operators are not exempt from the crackdown. They will be required to implement stronger responsible gambling protections, such as identifying and suspending problem gamblers. Failure to comply with these oversight duties could result in fines up to 300,000 Lari.
The reform package also targets the financial aspect of gambling. The government plans to raise the tax on gambling revenue paid by casinos, bingo halls, and bookmakers from the current 10% to 15%. Additionally, the tax on customer cash withdrawals on online platforms will triple from 2% to 6%. These tax hikes are projected to generate an additional 400 million Lari annually for the government.
Prime Minister Irakli Gharibashvili has been vocal about the need for these reforms, stating that the aim is to raise the cost of gambling and reduce its appeal to Georgians. The government’s approach is clear: by making gambling less accessible and more expensive, they hope to protect citizens from the potential harms associated with excessive gambling.
As Georgia prepares to implement these sweeping changes, the gambling industry faces a period of significant adjustment. The government’s commitment to regulating the sector and protecting its citizens is evident, and the world will be watching to see the impact of Georgia’s bold move.
