In recent years, Georgia has gradually become one of the emerging gambling markets that has attracted external attention. This small country, located at the junction of Europe and Asia, has attracted a large number of local and international gambling operators due to its open legal environment, flexible market access policies, and high internet penetration rate.
At the same time, as the government gradually strengthens gambling regulation, Georgia is moving from a "free market" to "orderly compliance," and its gambling legal system and market structure are becoming increasingly mature.
This article will review the development history of Georgia's online gambling laws, and analyze the current situation and future trends of the country's gambling market.
I. Background and Early Development of Gambling Legalization
Georgia is one of the first former Soviet countries to legalize the gambling industry. The legal status of gambling in the country can be traced back to 1998, when the government passed a series of laws allowing the establishment of casinos, lotteries, sports betting, and other forms of gambling businesses. Compared to neighboring countries, the Georgian government has always maintained an open attitude towards the gambling industry, which has laid the foundation for the subsequent development of online gambling.
Early Stage (2000-2010)
Online gambling services first entered Georgia in the early 2000s, but lacked clear legal guidance;
Most operators were local businesses, based on offline licenses while also setting up online platforms;
Regulation was relatively relaxed, and online gambling was not specifically legislated.
Despite this, the market size was relatively limited during this stage, but infrastructure (such as the internet, payment channels) gradually improved, and users gradually accepted online entertainment methods.
II. Improvement of Legal Framework and Establishment of Modern Regulatory System
2011 Gambling Law Revision
In 2011, the Georgian Parliament revised the "Gambling and Profitable Games Law," officially incorporating online gambling into the legal operating framework. The law stipulates:
All gambling operators must obtain a license to provide online services within Georgia;
Licenses are usually valid for 1 year and require annual renewal;
Online gambling services can include online casinos, sports betting, poker, lotteries, etc.;
Regulatory authority belongs to the Georgian Ministry of Finance Revenue Service;
Operators must comply with tax reporting, KYC audits, and responsible gambling policies.
This move made Georgia one of the earlier Eastern European countries to legalize online gambling, attracting international platforms such as Adjarabet, Crystalbet, Europebet to enter the market.
After 2017: Gradual Tightening of Compliance System
To address the social risks and money laundering concerns brought by the gambling industry, the Georgian government has gradually strengthened the regulation of the gambling industry after 2017:
Introducing stricter customer identification systems (KYC);
Requiring online gambling website servers to be located locally;
Establishing a national gambling information platform to monitor transaction records;
Strengthening content restrictions on advertising, especially targeting young users.
At the end of 2021, the Prime Minister of Georgia announced further tightening of gambling policies to "protect young people and vulnerable groups" and increase gambling tax contributions.
III. 2022 Gambling Tax System and Advertising Law Changes
Tax Reform Highlights:
Starting in 2022, Georgia began implementing a new gambling tax structure, the core content includes:
10% tax rate on online gambling gross revenue;
Operators also need to pay 20% corporate income tax;
Players winning amounts over 1000 lari must pay personal income tax;
Lottery and other products need to pay an additional 6% tax.
This tax system aims to increase national fiscal revenue while encouraging operators to regularize.
Changes in Advertising Regulations:
In early 2022, Georgia introduced new regulations limiting gambling advertising:
Prohibiting gambling ads on broadcast, television, and outdoor media;
Only allowing promotion through licensed gambling websites and registered digital platforms;
Prohibiting the display of gambling content to individuals under 21;
Violators will face high fines and the risk of license revocation.
This marks Georgia's gambling industry moving from "easy in, easy out" to a more cautious and institutionalized stage.
IV. Gambling Market Size and Main Operators
Market Size
According to data from the Georgian Ministry of Finance, the total revenue of the national gambling industry in 2023 exceeded 2 billion lari (approximately 700 million USD), of which online gambling accounted for about 70%. This ratio shows the strong development momentum of online gambling in the country.
Currently, Georgia has more than 30 licensed online operators, with an annual growth rate of about 15%-20%. The user structure is mainly concentrated among young males aged 18-35, who prefer sports betting and slot games.
Main Platforms
The following are some of the more influential brands in the Georgian online gambling market:
Adjarabet
Georgia's largest local operator, established in 1998, later acquired by Flutter Group; offers sports, live, lottery, and other full-category products.
Crystalbet
Has strong offline channels and brand influence, a preferred betting platform for traditional users.
Europebet
Belongs to the Swedish Betsson Group, emphasizing European-style user experience and bonus systems.
Leader-bet
Focuses on localized markets, covering many remote areas in Georgia, with a large number of loyal players.
Most of these platforms operate both physical stores and online websites, achieving channel integration and traffic complementarity.
V. Regulatory Challenges and Future Development Trends
Despite the rapid market development, Georgia's online gambling still faces the following challenges:
Illegal websites are still operating, although a blacklist system has been established;
Advertising regulation is not yet fully detailed, with gray areas still existing for self-media and social platforms;
Public opinion on gambling is polarized, with some of the public holding a critical attitude towards its impact;
Responsible gambling mechanisms still need to be strengthened, especially in self-exclusion and psychological counseling aspects.
Future Trends:
Further integration of regulatory and tax systems, strengthening online monitoring;
Introducing player self-control tools and game limit systems, enhancing the social responsibility image;
Possibly opening channels for international operator license applications, attracting foreign investment;
Introducing new technologies such as blockchain, cryptocurrency payments, and virtual sports into the compliance system;
Promoting gambling education and media transparency, improving public perception.
Conclusion
The Georgian online gambling market has experienced a rapid transition from disorder to order, with its legal system evolving from early leniency to deepening compliance and regulation. With its open market, international cooperation, government promotion, and technological development, Georgia is becoming an important example of digital reform in the gambling industry in Eastern Europe and the entire CIS region.
For international operators, Georgia provides a window of opportunity with transparent regulation, a broad user base, and strong growth potential. In the coming years, further standardization and expansion of Georgia's gambling market may become a new star on the European gambling map.
