Georgia Parliament Approves Law Permitting Casinos to Organize International Gambling Tournaments
Georgia’s Parliament passed a bill allowing casinos to host international gambling tournaments with at least 80% foreign participants and prize pools over GEL 3 million (US$1.16 million) qualifying for fee exemptions and tax relief. The measure passed 73-5 but drew criticism from the Orthodox Church and Public Defender over unassessed social costs and fast-tracking. (58 words)
SCCG Take — The law creates clear incentives for high-stakes international events yet leaves unaddressed the social impact concerns raised in debate, requiring close regulatory scrutiny on actual promotion effects versus projected revenues.
Georgia’s Parliament has approved legislation allowing casinos to organize international gambling tournaments. The bill, introduced by lawmakers from the ruling Georgian Dream party, passed its final reading with 73 votes in favour and five against. Parliament debated and approved the legislation over two plenary sessions, as reported by Yogonet International.
Lawmakers raised the minimum share of foreign participants from 70% to 80%. They also removed a proposed provision that would have imposed a GEL 150,000 (US$57,815) fine on organizers holding international gambling tournaments without authorization.
Provisions of the Approved Law
Under the approved law, an international gambling tournament is defined as a competition organized by a casino with a prize pool guaranteed in advance by the organizer and at least 80% of participants coming from overseas. Organizers will be exempt from the gambling business fee on gaming tables used exclusively for international tournaments if the prize pool exceeds GEL 3 million (US$1.16 million).
The legislation also allows organizers to generate revenue from these tournaments, which may be held at licensed casino premises or other venues. Individuals' taxable income from participating in international gambling tournaments will be subject to a 20% tax. However, foreign nationals participating in tournaments with prize pools exceeding GEL 3 million (US$1.16 million) will be exempt from taxation on their winnings. Organizers that violate licensing requirements for international gambling tournaments will face a GEL 50,000 (US$19,272) fine.
Criticisms and the Path Ahead
The legislation has drawn criticism from the Georgian Orthodox Church Patriarchate and the Public Defender. During the second reading, members of People’s Power, a party aligned with the parliamentary majority, questioned the need to fast-track the bill. Eka Sepashvili raised concerns that the explanatory note accompanying the legislation did not assess its potential social costs. “We are talking about the possibility that the bill could lead to the undesirable promotion of these games, which are one of the significant problems facing society,” he said.
The For Georgia parliamentary faction voted against the legislation. These objections underscore the tension between attracting international gaming revenue and addressing domestic concerns over expanded gambling access. Implementation will reveal whether the new framework includes sufficient safeguards to meet the issues Parliament itself placed on record.
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