Georgia, as a crucial country at the junction of Europe and Asia, has seen rapid development in its online gambling market in recent years, attracting numerous international operators with its relaxed regulatory environment, low tax rates, and regional market potential.
1. Overview of Georgia's Online Gambling Market
(1) Market Size and Growth Potential
Market size in 2023: Approximately $350 million (60% sports betting, 40% online casinos).
Annual growth rate: 15%-20%, mainly benefiting from the popularity of digital payments and the expansion of the young player base.
Main operators: Local brands such as Crystalbet, Adjarabet dominate, while international platforms like 1xBet, Betsson have also entered.
(2) Player Characteristics
Sports betting dominates: Football (especially European leagues) is most popular, followed by basketball (NBA, European leagues).
Mobile dominance: Over 70% of bets are placed via smartphones.
Payment methods: Local bank transfers, e-wallets (such as PayBox), cryptocurrencies (supported by some platforms).
(3) Market Opportunities
✅Regional hub status: Can radiate to neighboring markets like Armenia, Azerbaijan.
✅Low tax environment: Corporate income tax is only 15%, gambling taxes are low (see below).
✅Well-developed digital infrastructure: Internet penetration rate reaches 75%, rapid proliferation of 5G networks.
2. Georgia's Gambling Regulatory System
(1) Regulatory Authority
Georgia's gambling industry is managed by the Revenue Service's Gambling Regulatory Authority, with main responsibilities including:
Issuing operating licenses
Supervising compliance (anti-money laundering, responsible gambling)
Collecting gambling taxes
(2) License Types and Requirements
Georgia offers online sports betting and casino licenses, application conditions include:
Company registration: Must establish a local entity in Georgia.
Capital requirements: Minimum registered capital of about $500,000.
Technical audit: Platform must pass fairness certification (e.g., GLI).
Compliance documents: Include AML policy, KYC procedures, etc.
(3) Tax Policy
Gambling tax:
Sports betting: 10% (based on net income).
Online casinos: 5% (based on net income).
Corporate income tax: Uniform 15%, no additional surtax.
(4) Key Regulations
Prohibition against targeting minors: Mandatory age verification (18+).
Advertising restrictions: Online advertising allowed, but no inducive marketing.
Payment regulation: Must support local bank settlements, cryptocurrencies need additional reporting.
3. Market Competition and Challenges
(1) Intense local competition
Adjarabet (local leader) holds about 40% market share.
International operators need to enhance penetration through local collaborations (e.g., with payment providers, team sponsorships).
(2) Increasingly strict regulatory trends
New draft in 2024 aims to strengthen player protection measures, potentially increasing compliance costs.
Enhanced anti-money laundering reviews, transaction records must be retained for at least 5 years.
(3) Black market competition
Some unlicensed platforms (especially cryptocurrency casinos) compete for players through VPN access, but the government is intensifying blocks.
4. Future Outlook
Potential markets: Growth in demand for esports betting, live entertainment venues.
Regional expansion: Could become a gambling hub for Central Asia and the Caucasus region.
Regulatory modernization: Expected to introduce more detailed online gambling regulations.
5. Conclusion: A Key Market Balancing Opportunities and Compliance
Georgia offers online gambling operators a market environment with low tax rates and high growth potential, but attention must be paid to local competition and increasingly strict regulations. Suitable for the following enterprises:
✅International brands seeking emerging market opportunities
✅European operators looking to reduce tax burdens
✅Platforms focused on sports betting or esports
