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Loading...Georgia is one of the few countries in the South Caucasus, where gambling is perfectly legal. Gambling industry in the country dates back to the days of the NEP, when the first casino opened in Tbilisi. However, they existed long (three years) and gradually turned its activities by May 1928, when all gambling activities in the territory of the Soviet Union was banned.

At that time, both in neighboring Turkey, Russia and Azerbaijan, the gambling business is in a very difficult situation, Georgia casinos are open to all comers. Nevertheless, the issue of gambling and in particular the problems associated with gambling, is constantly rising. The country regularly been talk among legislators and ordinary citizens about the negative side of gambling.

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The general opinion of the population about gambling positive, many people choose gambling as one of their favorite activities. A recent case study confirms that the Georgian population positively related to gambling. Georgians understand that casinos attract much-needed foreign capital, and with it the tourists players.

The Georgian Parliament is currently considering a draft law aimed at minimizing the negative effects of gambling. The proposal mainly relates to the restriction of access to the casino and other gambling institutions of the local population, taking into account salary. It is proposed to allow gambling only to those citizens whose salary reaches at least 500 GEL, and who have not less than 5000 GEL on their bank accounts. The proposal is still under consideration.

Online gambling in Georgia

Online gambling in Georgia is absolutely legal. A special feature of this sector in the country is the fact that virtually all land-based casinos have their online casino sites. The online gambling industry of Georgia operates a number of local and foreign operators, since the conditions for obtaining a license in accordance with the law of online gambling in Georgia are quite simple. Play a game of online gambling in Georgia can be special interactive clubs representing rooms with computers connected to the Internet and set stvu local and foreign online casino sites.

Georgians love to play at online casinos in such clubs, but now more and more people are using for this purpose their home device – computers, mobile phones and so on.

Recently, the Parliament of Georgia considered the initiative to ban advertising of gambling in the country. In the event that the proposal will receive the force of law, and restrictions also affect online gambling. Also, the proposal provides for more stringent control over the participation in gambling of persons under the age of a minor, and higher fines for any misconduct on the part of operators.

Having gained independence, Georgia has committed itself to upgrading the gaming industry. The favorable geographical position, the absence of legislation the ban on gambling, as well as loyalty to the gaming industry by the majority of political forces, the low level of corruption, ease of doing business, comfortable conditions of taxation provide gambling Georgia a number of advantages.

The current Georgian legislation enables legally exist all types of gambling activities. Among the main species – the casino, bookmaking business (including betting), lottery, slot machines parlors, gambling clubs. In the online segment, the law allows the organization of casino, betting and slot machine parlors.

Features of the organization of gambling in Georgia is that the device system-electronic games must have a real presence of (ground) gambling establishment.

Gambling business in Georgia is regulated by these legal acts:

• Georgia law “On the organization of lotteries, gambling and profitable games” from 25.03.2005 №1180;
• Law of Georgia on “Licenses and Permits” dated 24.06.2005 №1775;
• Georgia Law “On licensing and licensing fees” from 12.08.2003 №2937;
• Law of Georgia “On the collection of gambling” from 29.12.2006 №4250;
• Tax Code of Georgia from 17.09.2010 №3591;
• Joint Order of the Minister of Finance and Minister of Internal Affairs of Georgia “On approval of rules for owners of performance testing permits gambling and other profitable games” from 14.12.2011 №611-1013;
• Order of the Head of the Financial Monitoring Service of Georgia “On Approval of the Regulation” On the procedure and conditions for obtaining the information, its systematization, the Georgian Financial Monitoring Service processing and transmission by the organizers of lotteries, gambling and other profitable games “and” On the order and conditions of obtaining the information, its systematization , the financial monitoring Service of Georgia processing and transmission by the casino “from 28.07.2004 №94.

Conditions for obtaining authorization

In Georgia, quite loyal procedure and requirements for obtaining a permit (license) for the organization and conduct of gambling.

Get permission can companies registered in Georgia, and the owners of these companies can be both citizens of Georgia and foreigners alike.

The issuance of permits for gambling carries Revenue Service of Georgia. The grantee must submit the necessary documents in scanned form with the help of the IRS web page.

Recipient resolution chooses term delivery of the document depending on the set charging legislation for 1 workday – GEL 2 thousand / $ 830, 5 days – GEL 800 / $ 330, 10 days – GEL 400 / $ 365, 20 workers. days – free of charge.

The list of documents required to obtain a permit, a sufficiently large and depends on the specific form of gambling.

Applicant permission to organize betting, lotteries, promotional lottery submits to the Georgia Revenue Service:

• an extract from the State Register;
• document which confirms the payment permit fee;
• contract between the grantee and the person or institution that produce tickets lucrative games (except games, organized in a system-electronic form), indicating the number of tickets made;
• conditions (regulations) of the organization profitable games;
• sample ticket profitable games (except games, organized in a system-electronic form);
• in the case of the organization of betting – a document that confirms the provision of the prize fund is not less than 10 thousand GEL / $ 4, 15 thousand .;.
• in the case of the organization of totalizator in systemic-electronic form (online game) – the order of system-electronic game, which should be specified: the actual address from which will be managed profitable games and their organization, the list and the inventory of games, location (s) and the deadline for payout, the information on the prohibition of play at the individuals who are under 18 years of age.

To organize and conduct games of chance on the Internet (online) to the organizer of the game, you must have permission for the “ground” of the game (offline). After receiving permission for the game offline, the owner of this permit has the right to apply to the Internal Revenue Service of Georgia for permission to carry out online games with the provision of the above list of documents.

Authorized to engage in activities for the organization and conduct of gambling in Georgia is valid for 5 years.

Permit fees

Payment for the issuance of permits for the organization of gambling in Georgia is carried out annually. First, the grantee pays for the first year of operation, and then every year renews the authorization by making another payment.

The fee for the permit depends on the location of the activity in the field of gambling.

The fee for a permit to organize gambling in Georgia

The lowest fee for a permit to conduct gambling activities carried entities that organize this kind of business in the resort areas. This policy is aimed at the development of Georgia’s tourism infrastructure.

Thus, casinos and other gambling establishments in the resort cities of the country (Borjomi, Batumi, Kobuleti) enjoy significant benefits in establishing the board for permission to conduct business.

In particular, the annual rate of remuneration for permission to organize a casino in Batumi is 250 thousand GEL / $ 103.6 thousand, while in Tbilisi -.. GEL 5 million / $ 2 072 250. In this case, if the recipient has the permission to organize casinos in Batumi placing the institution on the territory of the newly built hotel with the presence of no less than 100 rooms, it is exempt from payment for authorization to 10 years. In addition, permission is given for free at the casino organization Kazbegi municipalities territories, Tskhaltubo, Sighnaghi.

The situation is similar to the size of the board for permission to conduct other types of gambling (lotteries, sports betting, gambling clubs). For example, the fee for a permit to organize a bookmaker in Tbilisi is GEL 200 thousand / US $ 8.3 thousand per year, while in the territory of administrative districts of Batumi, Kutaisi, Rustavi -… The whole 80 thousand GEL / $ 33.2 thousand . in year.

administration charge

In addition to the annual fee for authorization of gambling, the subject of such activities pays an administrative fee, the amount of which is determined depending on the institution and the scale of a quarter:

• with each slot machine – GEL 1,5-3 thousand .;
• with each table casino – GEL 15-30 thousand .;
• with each table gambling club – GEL 3-10 thousand .;
• per game in a system-electronic form – GEL 30-60 thousand .;
• with each cash register or profitable for the casino games in the system-electronic form, which is located outside the object organized, according to the resolution, for games of chance or profitable – GEL 1-1,5 thousand .;
• with each promotional drawing – 10% of the prize pool.

The fee within the designated limit is set by the local administration.

revocation

On the holder of the permit, which is not properly perform contractual terms imposed a fine and a primary requirement to streamline its activities in accordance with the due permit requirement, within the time limit set by the body which issued the permit. Fines GEL varies from one thousand. to 10 thousand. / $ 415-4150.

If the holder of the authorization, which were set deadlines to bring it into line permitting requirements are not fulfilled this requirement, it imposed a second penalty in the amount of three times. If after the end of the deadline, with the second imposition of a fine day, the permit holder has not fulfilled the conditions of permits, the amount of the fine is tripled. If the holder of the authorization will not enforce the licensing conditions, the decision on cancellation of the authorization.

If the subjects of gambling does not want next year to continue the activities that anticipate a resolution, it is enough for the 5 business days before the end of the annual payment to notify the Internal Revenue Service, which cancels the authorization.

The mechanism of control operators

The main government bodies that monitor the execution of the permission of the owners of gambling requirements stipulated licensing conditions, are the Internal Revenue Service of Georgia, the Georgian Ministry of Internal Affairs and Financial Monitoring Service of Georgia.

Within its competence, the administrative bodies shall observe and apply the methods of administrative response to violations of the subjects of gambling activities. Common are checking Revenue Service regarding the proper and timely payment of taxes. The Interior Ministry controls the fulfillment of the requirements of the law regarding the availability of devices in each institution for surveillance. Also monitored compliance with operator requirements regarding timely payment penalties (if they were imposed). An important object is to provide a test of casino cash game players in the debt for interest rates, which is strictly prohibited by law. If such violations have been established, holder of an authorization for the organization of gambling will have to pay a big fine. In the case of recurrence of this violation is possible revocation with niaganis liability management of the gambling establishment.

Taxation of gambling

Georgia – a country with a clear and transparent tax policy, with a low tax burden.

Bookmaker activity in Georgia is taxed in such a way that each operator who has permission to conduct this type of business, pays 5% VAT rate bets. This tax burden is not critical for the holder of the permit. However, representatives of the betting business are inclined to think that a more optimal would be a tax of 15-20% of gross gambling profits.

Controversial is the situation with taxing other activities in the field of gambling (casinos, lotteries, and so on. N.). Business entities pay taxes at a rate of 15% of the net income of its activities. Thus, they are in the same conditions as other business entities on the territory of Georgia – those are activities that are not related to the provision in the gambling industry services.

Specifics of gambling

Article 35 of the Law of Georgia “On the organization of lotteries, gambling and profitable games” establishes a number of restrictions for the owner’s permission to conduct gambling. For example, are not permitted lotteries organization of gambling and profitable games (except promotional lottery), as well as the sale / distribution of lottery tickets, gambling and profitable games (except promotional lottery tickets) in the children’s medical and educational institutions, houses of worship, children’s sanatoriums, libraries, museums, office buildings of state and local authorities, as well as in places prohibited by local authorities.

It is forbidden to participate in gambling persons who have not attained 18 years of age, and to play in a casino is 21 anniversary.

An additional mechanism for social responsibility of the operators of gambling is to control the amount of cash that participants spend gambling, from the Financial Monitoring Service of Georgia. Each organizer of a game of chance is obliged to inform the representatives of the people of the service, who spend on gambling more than GEL 3 thousand. / $ 1243 per day. Service for not providing this information to the operator may be fined in the amount of GEL from 2-6 thousand. / $ 830-2490. Worthy of attention is the creation of the Financial Monitoring Service of the so-called black list – a list of persons who are prohibited from participating in any gambling in the territory of Georgia. This list mainly comprises representatives of various international terrorist groups and niaganis gangs.

For several years in Georgia there are discussions about the need to ban gambling ads on television, radio and other media. But now the thought about the negative impact of such advertising does not find support for the general population.

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