Georgian Unlicensed Gambling Market Reaches $742 Million

The Georgian Gambling Association (GGA) has issued a warning to the Ministry of Finance, stating that the unlicensed gambling market in Georgia now generates over $742 million annually.

The GGA argues that a proposed significant increase in fines for licensed operators will not address illegal activities but will instead harm the regulated sector. The association contends that tax increases implemented in 2021 made it difficult for local companies to compete with offshore platforms, fueling the growth of illegal gaming.

Giorgi Mamulaishvili, Head of the GGA, criticized the government's focus, stating that licensed businesses adhering to regulations are not the primary source of concern. He added that the industry has consistently offered to assist the government with resources and expertise to combat illicit supply.

Under the new legislative proposal, fines for licensed entities would increase substantially. For instance, fines for gambling clubs would rise from $740 to $3,700. The GGA considers these proposed penalties poorly targeted, as most violations within the legal market are administrative or technical issues rather than intentional misconduct.

While the Ministry of Finance asserts that enforcement against illegal activity is in progress, the GGA maintains that the government is significantly underestimating the scale of the illegal market and calls for a coordinated strategy against offshore competitors.