Georgia Proposes 5% Tax for Foreign Online Gambling Licences

Georgia Proposes 5% Tax for Foreign-Focused Online Gambling Licences – New Framework Would Exclude Local Players

Key Takeaways

• Georgia has submitted draft legislation to create a new licence for online gambling operators serving only foreign customers.
• Operators under the new framework would pay 5% gross gaming revenue tax instead of the standard 20% applied to domestic-facing platforms.
• Georgian citizens would be automatically blocked from accessing internationally licensed websites.
• Each licence would be valid for five years with an annual fee of 100,000 GEL and strict compliance conditions.

Draft Law Introduces Separate Licence for Foreign-Focused Operators

Georgia has unveiled draft amendments to its law “On the Organisation of Lotteries, Gambling and Profitable Games” that would establish a distinct licensing regime for online gambling operators targeting customers outside the country.

The proposal, submitted to parliament under an accelerated legislative process, would allow companies to obtain a dedicated licence to offer online slots and sports betting exclusively to foreign citizens and stateless persons. Georgian citizens would be automatically blocked from accessing these platforms.

This creates a clear structural separation between operators serving the domestic market and those targeting international customers. Under the current system, online casinos serving Georgian users are subject to a different tax framework and broader access rules.

Reduced 5% GGR Tax Compared to 20% Domestic Rate

A central element of the proposal is a reduced tax rate for internationally focused operators. Companies licensed under the new category would pay 5% gross gaming revenue tax. The tax would be calculated on the difference between stakes received and winnings paid out.

By comparison, online casinos serving Georgian customers are currently subject to a 20% GGR tax. The draft law therefore establishes a significantly lower fiscal burden for operators that restrict their services to foreign users.

The approach mirrors strategies adopted by established European gambling hubs such as Malta, Gibraltar and the Isle of Man, which have attracted iGaming businesses through competitive tax regimes. Estonia has also positioned itself as a lower tax jurisdiction, announcing plans to reduce its GGR tax to 4% by 2029, although its implementation process has faced administrative challenges.

Georgia’s model differs in one key aspect: the reduced tax rate would apply only to companies serving non-Georgian customers, while domestic-facing operators would continue to pay the standard 20% rate.

Licence Duration, Fees and Compliance Requirements

According to the draft legislation, each international licence would be valid for five years. Operators would be required to pay an annual fee of 100,000 GEL.

The framework also introduces financial penalties for non-compliance. Companies that fail to meet licence conditions or miss payment deadlines would face fines of 20,000 GEL.

In addition, the proposal would tighten domain rules. Operators would be limited to a single website per licence, compared with the current allowance of two websites. This measure would apply specifically to entities operating under the new international licensing category.

Consumer Protection Measures for Georgian Citizens

The proposed reform maintains Georgia’s restrictive stance toward domestic gambling participation. Lawmakers state that Georgian citizens would be automatically prevented from accessing platforms licensed under the international regime.

The government has previously excluded around 1.5 million citizens from gambling as part of broader consumer protection measures. Under the new proposal, the separation between domestic and foreign-facing operations would continue this policy direction by preventing local users from participating in the lower taxed international segment.

According to the explanatory note accompanying the bill, the reforms are intended to balance consumer protection with economic development. Restricting access for Georgian citizens is presented as a measure to limit gambling-related harm within the country.

Economic Objectives and International Positioning

Lawmakers argue that creating a dedicated, lower tax framework for foreign-focused operators could support foreign direct investment and employment in technology and marketing roles. The government also cites potential growth in the service sector and additional tax revenue as objectives of the reform.

Georgia already hosts established gambling brands such as Adjarabet, owned by Flutter Entertainment, and Betsson Georgia, formerly known as europebet. Their presence indicates that the country has an existing iGaming infrastructure and industry experience.

By offering a 5% GGR rate for companies that exclude domestic players, Georgia is positioning itself within a group of European jurisdictions that compete on tax efficiency and regulatory clarity. However, the proposal maintains a dual system that differentiates clearly between domestic and international operations.

For international operators and crypto-friendly platforms evaluating licensing options, the draft framework signals a potential additional jurisdiction with a defined tax rate, fixed annual fee and specific access restrictions. The final impact will depend on parliamentary approval and implementation details.

Our Assessment

The draft legislation introduces a separate licensing and tax regime for online gambling operators serving only foreign customers, with a 5% GGR tax compared to the existing 20% rate for domestic-facing businesses. Georgian citizens would be automatically blocked from accessing these platforms, while licensees would be subject to five-year terms, annual fees of 100,000 GEL and compliance penalties. The proposal combines consumer access restrictions at home with fiscal incentives aimed at attracting internationally focused operators.