The prime minister of Georgia raised taxes on the gaming industry, calling the state of affairs "catastrophic."

Georgia's Struggle: Reducing Radical Gambling Despite Tax Increase

During his budget presentation, Irakli Gharibashvili made reference to this rise in sector turnover. The increase was from GEL48 billion to GEL52 billion, or $19.2 billion, £15.5 billion, or €17.9 billion. The East European nation's prime minister referred to this 2022 figure as "catastrophic."

This higher participation rate happened in spite of the advertising ban, which surprised Gharibashvili, he said. Moreover, the rise in the legal gambling age is directly responsible for the prohibition of gambling among 1.5 million younger individuals. 

The government decided to increase the tax on gambling profits from 10% to 15% for this reason. Additionally, players will now contribute 5% instead of 2% toward the new cash out fee structure.

Georgia's Battle: Tax Increase Aims to Increase Gambling Involvement

The latest changes to the gaming industry's tax rates, according to Prime Minister Gharibashvili, should bring in an additional GEL400 million a year. He voiced concern over the rise in gaming turnover in spite of policies like the prohibition on advertising and the raising of the legal minimum age to gamble to 25.

Gharibashvili emphasized that 1.5 million citizens were prohibited from taking part, which underscored the decision to increase taxes with the intention of reducing the industry's ongoing participation. 

Georgia Adopts Strict Measures to Address Gambling Addiction

Earlier this year, Garibashvili approved new gambling laws for the nation, among them a ban on offshore gaming websites.

Garibashvili stated that the reforms were intended to address the harms associated with gambling, which have grown in popularity recently, particularly among younger populations.

This is the biggest modification to Georgia's gambling laws since 2021, when the state attempted to restructure its regulatory framework in response to concerns about safer gaming caused by the nation's emergence as a center for land-based gaming.

At the time, the Georgian parliament passed laws that forbade TV advertising, raised the legal gambling age to 25, taxed internet casinos 70% more, and prohibited public employees and self-excluded individuals from gambling.

Georgia's Tighter Hold: Reforms to Land-Based and Online Gambling
The three biggest land-based casinos in the nation, Adjara Group, Crystalbet, and Iveria, would all be qualified to possess online casino licenses under the new regulations.

Only physical casinos would offer online slot machines, and the same would apply to sportsbooks.

There are now more licenses that can be obtained exclusively online, but each licensee has to pay the government €1.6 million a year.

The president of Szilaghi Consulting, Alex Szilaghi, asserts that the Georgia fee is substantial when considering the region's size. He emphasized that this amount is sufficient for all EU members, not just Georgia. Szilaghi claims that the fee was put in place to guarantee fair competition for all local businesses.