Which Activities Require a Permit
Article 11 of the Georgian Law on Gambling Games contains the complete catalogue of activities subject to permitting: the organization of promotional games; the organization of a casino; the systemic-electronic organization of casino games and its international variant; the organization of a totalizator; the systemic-electronic organization of totalizator games and its international variant; the organization of a slot machine hall; the systemic-electronic organization of gaming machine games and its international variant; 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, which means that a foreign representation cannot directly become a permit holder — a subject with Georgian registration is required. A lottery and a promotional game may be held in systemic-electronic form only in observance of the requirements established by the law. Identifying the correct permit type for your intended activity is the first procedural step, because the catalogue is exhaustive and operating outside it is unlawful.
Specifics of Electronic-Form Permits
A permit for the systemic-electronic organization of casino games may be issued either on the basis of a casino organization permit or without it, while the international organization permit is issued without a casino organization permit; under each such permit only one website organized under a single internet domain name is allowed. The same rule applies to the electronic organization of gaming machine games. The systemic-electronic totalizator organization permit is issued to the holder of a totalizator organization permit, with the same single-domain limitation, while its international variant is issued without the base permit. A gambling club organization permit is issued only in the municipality of the city of Tbilisi, to a holder of a casino and/or slot machine hall permit, and the club must be arranged as a separate, independent facility, distinct from the casino hall or slot machine hall. It is prohibited to organize or play systemic-electronic games at an internet service facility, and to place computers or similar electronic devices in a facility designated for games for the purpose of participation in electronic gambling. Where the base activity ceases or is suspended, operating under the derived electronic permit is allowed for the current quarter but no more than 60 calendar days; in each subsequent quarter it is possible only if the physically arranged facility is renewed for at least 30 days. Cancellation of the base permit cancels the permit issued on its basis, and where activity under an electronic permit ceases, is suspended or the permit is cancelled, the rules for disposing of the funds placed on a player's account are established by the Minister of Finance.
Terms and Restrictions on Issuance
The permits are issued for a term of 5 years, except the promotional games organization permit, which is issued for 1 year; permits issued on the basis of another permit run for the remaining validity of that base permit. Permits for organizing a casino, totalizator, slot machine hall, lotto, bingo and gambling club are issued for the operation of each concrete facility, and gambling games and profit-making games must be conducted separated from each other. 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 to a person whose managerial or representative officer, founder/partner or beneficial owner has been convicted or found guilty of an intentional economic crime, including in the sphere of financial activity, or of an intentional serious or especially serious crime, unless the conviction has been removed or extinguished. Changing the address of a casino, slot machine hall, gambling club or totalizator through an entry in the sectoral permit registry is impermissible where a different permit fee rate is established for the new address under the law on license and permit fees; in that case a new permit must be issued under Georgian legislation. The location of lotto and bingo facilities may be changed through registry entries, and for systemic-electronic organization the internet address or the location of the facility, the place of management, may be changed only through entries in the registry. Upon the declaration of a state of emergency or martial law in Georgia, the Government may introduce a different procedure for the permitting of these activities.
The Casino Application Documents
Article 19 of the law defines the documents accompanying a casino organization permit application. Besides the standard documentation, the applicant submits to the Revenue Service the casino operating conditions, the regulation, specifying the list of casino tables and/or club tables with each table's name, factory number, year of manufacture, country of manufacture and manufacturer; the minimum and maximum bets on each casino table; where club tables exist, the service commission on each; the full list of games conducted in the casino with detailed rules; working hours and rules of conduct; the deadline and place for paying out winnings; and the procedure and time limit for reviewing claims, which may not exceed 30 calendar days. The application is accompanied by samples of gaming chips showing the denomination, ornament and color; a certificate on the criminal record of the applicant's managerial and representative persons, founders/partners and beneficial owners; a document confirming the origin of the funds needed for the permit fee; an authorization certificate for the essential products or services used; and, where products supplied by another person are used, a copy of the contract with that supplier, whose changes must be reported no later than 2 days after implementation. It is prohibited to conduct in the casino a game that is not envisaged by the regulation, and the permit holder conducts its activity under the procedure established by the normative act of the Minister of Finance, using the accounting forms developed by it.
The Electronic Organization Application
For a permit for the systemic-electronic organization of casino games the applicant submits the rules of the systemically-electronically organized game, indicating the actual address in Georgia from which the game is managed and organized and the location of the server infrastructure in Georgia; the list and description of the games; the procedure, place and bounded time limit for paying out winnings together with the claims procedure; and, for internet-based games, the website address, the player registration procedure and the deposit or balance management rules, with a telephone number registered in Georgia for telephone-based games. The website must display, in Georgian, the organizer's name, legal address, telephone number, permit number, the list of games, the detailed rules, and information on the prohibition of participation by Georgian citizens under 25 years of age, foreign citizens or stateless persons under 18 years of age, and persons entered in the list of dependent persons and the list of prohibited persons. For an international organization permit the same information appears on the website in Georgian and English, and participation by Georgian citizens is not allowed. The application also includes an authorization certificate confirming conformity with the technical standards, the technical documentation of the game management system, the form and procedure for player registration, identification and verification, the rules for storing personal data, the list of platform protection mechanisms and the description of financial transaction accounting — the full technical transparency of the operation being the price of operating in electronic form.