The General Principle of the Permit Requirement
The conduct of any type of gambling and/or profit-making game on the territory of Georgia, their organization in systemic-electronic form, and the supply of gambling and/or profit-making games require a permit in accordance with the Georgian Law on Licenses and Permits — this is the general principle established by Article 5 of the Law on Gambling Games. Only the organization of lotteries, gambling and/or profit-making games envisaged by that law, and the distribution of their tickets, is permissible. Operating without a permit, as well as failing to observe permit conditions, is considered a violation of the law and entails liability under Georgian legislation. The same article contains specific prohibitions you should know before structuring any game-based promotion: issuing a permit for promotional games aimed at the rapid and effective sale of tobacco products, tobacco accessories and/or devices intended for tobacco consumption is prohibited, and using such products as prizes or distributing it through lotteries and games is likewise banned. Persons registered in Georgia may not organize the games envisaged by the law on any type of floating object in the internal maritime waters and territorial sea of Georgia. The Government of Georgia may assign the conduct of promotional games to the Revenue Service, in which case it itself establishes the rules and conditions and determines the prize fund.
The Complete Catalogue of Permits
Article 11 of the law defines the activities subject to permitting: the organization of promotional games; the organization of a casino; the systemic-electronic organization of casino games and its international organization; the organization of a totalizator and the two electronic forms of its organization; the organization of a slot machine hall and the two electronic forms of the organization of gaming machine games; the organization of lotto; the organization of bingo; the organization of a gambling club; and the supply of gambling and/or profit-making games. These permits are issued only to entrepreneurs registered in Georgia. Under each electronic organization permit only one website organized under a single internet domain name is allowed, which prevents a single permit from anchoring a network of mirror sites. A gambling club permit is issued only within the municipality of Tbilisi, to the holder of a casino and/or slot machine hall permit, and the club must be arranged as a separate, independent object. It is prohibited to organize or play electronic games at an internet service facility, and to place computers or similar electronic devices in a facility designated for games for participation in electronic gambling — the physical and electronic offers must not be mixed on one premises.
Terms, Addresses and Grounds for Refusal
The principal permits are issued for a term of 5 years, the promotional games permit for 1 year, and permits issued on the basis of another permit run for the remaining validity of the base permit. Organization permits are issued for each concrete facility, and gambling games must be conducted separated from profit-making games. Where recognized tax arrears exist, a permit is not issued. The transfer of a permit to another person is prohibited, and a permit may not be issued where the conviction of the applicant's or holder's managerial or representative officer, founder/partner or beneficial owner for an intentional economic crime, including in the sphere of financial activity, or for an intentional serious or especially serious crime has not been removed or extinguished. On suspension of the base activity, work under the derived electronic permit continues for the current quarter, for no more than 60 calendar days; in subsequent quarters the physical facility must be renewed for at least 30 days. Cancellation of the base permit cancels the electronic permit issued on its basis. An address change through the registry is possible only where the same fee rate applies to the new address; otherwise a new permit must be issued. The location of lotto and bingo facilities may be changed through registry entries. On the declaration of a state of emergency or martial law the Government may introduce a different permitting procedure, and the fate of the funds on a player's account when electronic permits cease is determined by the rules of the Minister of Finance.
The Gambling Club Application
Article 19-1 of the law regulates the application for a gambling club organization permit. Beyond the standard documentation, the applicant submits to the Revenue Service the gambling club operating conditions, the regulation, which must specify the list of club tables in the club, indicating each table's name, factory number, year of manufacture and country of manufacture; the amount of the service percentage or commission on the club table; the club's operating rules; the rules of conduct in the club; the rules of the games conducted there; and samples of gaming chips, where they exist. Where the applicant uses essential products or services supplied by another person, the number of that person's valid supply permit must be indicated. The application is accompanied by an authorization certificate confirming conformity with the standards established by the Minister of Finance, and by a copy of the contract concluded with the supplier; any change to that contract must be reported no later than 2 days after implementation, with a copy of the amendment document. It is prohibited to conduct in a gambling club a game that is not envisaged by the regulation — the regulation is the exhaustive boundary of what may lawfully be played in the club.
The Slot Machine Hall Application
Under Article 20 of the law, a slot machine hall application is accompanied by the organization conditions, the regulation, specifying the deadline and place for conducting gambling games; the list of gaming machines, indicating each machine's name, modification, factory number, year of manufacture, country of manufacture and manufacturer; the minimum and maximum bets to be placed on each machine and the maximum amount of winnings; the list and detailed rules of the games conducted in the hall; and the procedure and time limit for reviewing claims, which may not exceed 30 calendar days. Where essential products supplied by another person are used, the number of their valid permit must be indicated; the application includes an authorization certificate for the essential products or services and an authorization certificate for the content of the specific game in each machine, together with the criminal record certificates of the managerial persons and the document on the origin of the funds for the permit fee. A change to the contract with a supplier must be reported immediately in the slot hall case. For the electronic organization of gaming machine games the applicant submits the game rules with the management and server address in Georgia, and website information including the prohibition of participation by Georgian citizens under 25 and foreigners under 18 years of age; for international organization the same information appears in Georgian and English. Both in the hall and in electronic form it is prohibited to conduct any game other than one envisaged by the regulation or the rules.