Georgia has introduced draft legislation that could establish a dedicated licensing framework for international online gambling operators, offering a significantly lower tax rate for businesses serving customers outside the country.
The proposal, submitted to parliament under an accelerated legislative procedure, would amend the country’s gambling legislation by creating a new licence category for online casino and sports betting operators targeting only foreign players. Georgian citizens would be automatically blocked from accessing these platforms, with eligibility limited to foreign nationals and stateless individuals.
Under the proposed framework, operators holding the new international licence would pay a 5% gross gaming revenue (GGR) tax instead of the standard 20% GGR rate currently applied to companies serving the domestic market. The tax would be calculated on the difference between total stakes received and winnings paid to customers.
Each licence would remain valid for five years and require an annual fee of 100,000 GEL (around £28,700). Operators that fail to comply with licence conditions or payment obligations could face fines of 20,000 GEL. The reforms would also restrict licensees to operating a single website, replacing the current allowance of two domains per licence.
The proposal follows a model used by several established European gambling jurisdictions that offer competitive tax environments to attract international businesses. Lawmakers believe the lower tax rate could encourage foreign operators to establish a presence in Georgia while maintaining stricter rules for the local market.
Georgia has steadily tightened gambling regulations in recent years, including measures that have excluded around 1.5 million citizens from participating in gambling activities. Despite those restrictions, major operators continue to operate in the country, demonstrating that Georgia already has a developed gambling sector.
According to the explanatory note accompanying the bill, the government aims to balance stronger consumer protection with economic development. Officials argue that limiting access for Georgian residents while welcoming internationally focused operators could attract foreign investment, create skilled jobs in technology and marketing, expand the country’s services sector and generate additional tax revenue without increasing gambling participation among local consumers.