November 30, 2021
Social Media Intern
Georgia's government has announced further limitations on internet gambling, as well as a suspension of advertising and a new tax structure. This is in response to the country's prime minister, Irakli Gharibashvili, who last week pushed MPs to take action against gaming.
Gambling-related harm has been noted by Gharibashvili as a justification for Georgia to seek greater regulation of the online casino business. Another incentive, according to the claim, is that Georgia is losing tax revenue due to unregulated gambling enterprises.
Lasha Khutsishvili, the minister of finance, has produced a new bill that proposes changing taxes to benefit the state's tax office and society. The legislation provides that gross gaming revenue will be taxed at a rate of 10%.
In the meanwhile, winnings will be taxed at a rate of 2% and will be deemed part of a consumer's income. The current proposal, on the other hand, portrays a far bleaker picture for the gaming business, which would face tax increases of between 65 and 70 percent, but no further specifics are available at this time.
However, imposing high taxes may not be fully possible, as operators are likely to be burdened by the increased rate.
Ads to Go Dark in Georgian Gambling
Other changes are expected because of Georgia's future law. Legislators, for example, want to see less advertising in public places. Gharibashvili, on the other hand, intends to remove it altogether, adopting a scheme like that used in Spain and Italy.
As a result, operators will be forced to halt their Internet, television, and physical space ads and promotions. Operators will still be able to sponsor companies and display their logos, which is a bonus.
Gharibashvili also wants to outlaw minors gaming for a period of 25 years in this case. To put it another way, anyone under the age of 18 would be forbidden from participating in both retail and internet gambling. Foreign nationals, on the other hand, may continue to gamble because the restriction does not apply to them.
The government is also looking ahead, knowing that the harsher limitations may resurrect the offshore gaming business. As a result, the ministry would ask any approved payment processors in the nation to stop processing payments to foreign gaming businesses.
More information should be available soon. The country's operators are likely to be interested in learning more about how the government intends to raise taxes on gambling enterprises and how this will be a viable and long-term model.
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