Georgia approves legislation permitting international casino tournaments with tax breaks
The Georgian Parliament has voted through legal reforms enabling casinos to stage international tournaments with tax exemptions, drawing scrutiny from religious authorities.
- Legislation sponsored by the ruling Georgian Dream party passed its third reading by 73 votes to five.
- Events with prize funds exceeding GEL 3 million will grant operators table fee relief and provide income tax exemptions for foreign players.
- The Georgian Orthodox Church Patriarchate and the Public Defender have criticized the move, citing a lack of prior consultation.
Georgia's Parliament has passed legislation allowing licensed casinos to organise international gambling tournaments, establishing targeted tax relief and operational exemptions for large-scale events.
Introduced by lawmakers from the ruling Georgian Dream party, the legislative package cleared its third and final reading with 73 votes in favour and five against. Members of the parliamentary faction For Georgia did not support the measure.
Tournament criteria and tax concessions
The statutory revisions amend the Law on the Organization of Lotteries, Gambling and Games of Chance alongside four related statutes. Under the approved framework, an international gambling tournament is defined as a casino-organised event with a prize fund guaranteed in advance, in which foreign nationals comprise at least 80% of participants. Lawmakers had originally set this threshold at 70% in the draft bill before increasing the foreign player quota during committee debates.
Operators are permitted to stage these international events either at venues licensed for casino operations or at premises outside existing casino locations.
The legislation introduces specific financial incentives for higher-value events. Organisers who dedicate gaming tables exclusively to an international tournament offering a prize pool above GEL 3 million are granted an exemption from the standard gambling business fee applicable to tables.
Under standard rules, taxable income generated by individuals playing in international tournaments carries a 20% tax rate. However, foreign nationals competing in tournaments where the prize pool exceeds GEL 3 million are completely exempt from taxation on those winnings.
Regulatory penalties and economic arguments
The revised legislation sets a fine of GEL 50,000 for breaches of licensing regulations governing the organisation of international gambling tournaments. During legislative scrutiny, members of parliament removed an earlier draft clause that would have levied a GEL 150,000 sanction on unauthorised organisers.
Proponents have framed the legal changes as a stimulus for hospitality and visitor numbers outside peak holiday months.
International gambling tournaments are meant to support the tourism sector during the off-season.
Opposition from the Patriarchate
Despite securing majority backing in the chamber, the bill has encountered objections from external bodies, including Georgia's Public Defender and the Georgian Orthodox Church Patriarchate.
The legislative initiative came as a complete surprise because there was no prior communication with the Church.
Following the bill's passage through Parliament, the Georgian Orthodox Patriarchate scheduled an internal meeting for 30 October to review the tournament legislation before publishing its official position on the matter.
