The gaming business in Georgia is one of the most strictly regulated spheres: from the issuance of permits to electronic control, the entire system is established by the Law of Georgia on Lotteries, Gambling and Other Profitable Games and is built on state institutional mechanisms. On this page we explain the fundamental blocks of gaming business law — the permit regime, the issuing authority, the rules of inspection, fines, the lists of dependent and prohibited persons, and the electronic control system. Legal.ge provides dedicated assistance in the practical application of these regulations.
The general permit rule in the gaming business
The first paragraph of the fifth article of the law establishes: on the territory of Georgia, the conduct of all kinds of gambling and/or profitable games, their organization in systematic-electronic form, and the supply of gambling and/or profitable games require a permit in accordance with the Law of Georgia on Licenses and Permits. Activity without a permit and non-fulfillment of permit conditions are considered violations of the law and entail liability.
The same article defines the permissible forms of activity: on the territory of Georgia only the organization of the lottery, gambling and/or profitable games contemplated by this law, their organization in systematic-electronic form and the distribution of their tickets are allowed. State protective intervention also begins here: it is prohibited to use tobacco products in incentive games aimed at their fast sale, and the transfer of incentive games to a state agency falls within the competence of the Government.
The issuing authority: the Revenue Service and the permit registry
The first paragraph of the seventh article identifies the issuing authority: the issuance of permits for organizing gambling and/or profitable games, for their systematic-electronic organization and for the supply of games, the introduction of amendments into them, their cancellation and the entry of the relevant data into the departmental permit registry are carried out by the Revenue Service in accordance with the Law of Georgia on Licenses and Permits and with this law.
The Revenue Service is empowered to verify the authenticity of the documents submitted by the permit seeker and their compliance with the relevant requirements of the law — including, additionally, in the case of the organization of a casino. This means that at the application stage the documentation must already be authentic and complete; otherwise the process stalls.
Inspections: at any time, without quantitative limitation
The Revenue Service is empowered to impose control over the fulfillment of permit conditions. For this purpose, during a calendar year, at any time and without quantitative limitation, the state of fulfillment by the permit holder of the requirements established by this law and by other normative acts may be inspected. The procedure of inspection is established by a joint order of the Minister of Finance and the Minister of Internal Affairs of Georgia.
The control system is complemented by the thirty-sixth article: the Ministry of Finance of Georgia is obliged to impose control over compliance with the requirements of every point of this law and of the rules of the game (the regulations). For an organizer, such multi-level supervision means that compliance is not a one-off event but a permanent operational discipline.
Fines and the payment deadline
For violations of permit conditions, the permit holder is fined by the Revenue Service or by the Ministry of Internal Affairs of Georgia. The administration of the payment of the fines imposed is carried out by the tax authority according to the rules established by the Tax Code of Georgia.
The deadline is clearly defined: the permit holder is obliged to pay the fine imposed for a violation of permit conditions within 30 calendar days from the delivery of the individual administrative-legal act imposing the fine. Missing this deadline creates additional problems, so a reaction immediately upon receipt of the fine act is essential.
The lists of dependent and prohibited persons
A subsequent norm of the seventh article creates a mechanism of social protection: the lists of dependent persons and of prohibited persons are maintained by the Revenue Service, and only data concerning a citizen of Georgia may be entered into these lists. Data are entered into the list of dependent persons either on the basis of the person's own application, or on the basis of a judge's order, in accordance with the Administrative Procedure Code of Georgia.
Data in the list of dependent persons are entered for a period of 5 years. The data are removed before the expiry of that period if Georgian citizenship is terminated, and also on the basis of a judge's order — no earlier than 3 years from entry into the list. The procedures for maintaining the lists are established by normative acts of the Minister of Finance and of the Government.
The electronic control system and the selected person
The central instrument of supervision over the modern gaming business is the electronic control system. It is introduced on the basis of a contract concluded between the Revenue Service and a selected person: the selected person is obliged, in accordance with the procedure established by the Minister of Finance, to introduce the system and to ensure its operation. The contract is concluded for a term of no more than 15 years, and the server of the selected person must be located on the territory of Georgia.
The system controls the fulfillment of permit conditions and of the requirements of legislation by holders of permits for organizing a casino, a hall of gaming machines and a totalizator, as well as by holders of permits for the systematic-electronic and international organization of these games. The Government is empowered to establish additional requirements for organizers and suppliers; their non-fulfillment is considered a violation of permit conditions. The permit seeker and holder, in turn, is obliged to pay the fees connected with the introduction and operation of the system.
Transitional control and the assistance of Legal.ge
The law also disciplines the past: control over the licenses issued before this law entered into force for the organization of lotteries, gambling and profitable games, and over the permit holders' compliance with the legislative norms of Georgia, is exercised within its competence by the Ministry of Finance. If you operate in the gaming business, Legal.ge will help you manage the permit procedure, inspections and sanction risks correctly.