What gaming law regulates in Georgia
The Law of Georgia on Lotteries, Gambling and Profitable Games is the act that gives legal shape to the Georgian gaming business. Its purpose is the state regulation of the sphere of lotteries, gambling and profitable games in Georgia, ensuring the protection of the lawful interests of citizens and the rights of consumers, in accordance with the Law on Licenses and Permits. This is the frame without which neither an organizer can operate on this market nor a player participate safely.
This page explains the core definitions of the law, the games that fall outside its scope, and the permit requirement. If your business or your consumption touches this sphere, knowing the exact terminology is the first step towards ending up in the correct legal regime.
Gambling and profitable games — the key definitions
Gambling games are games whose outcome depends entirely or partly on chance. They are conducted by means of cards, dice (other than backgammon), the gaming wheel (roulette), a gaming machine, a casino table, a club table and/or other gaming inventory, and participation in them offers the possibility of monetary winnings. The organization of gambling games, except a gambling tournament, is permissible only in a casino, a slot-machine hall, a gambling club and/or in the systematic-electronic form provided by the law.
Profitable games are: lotto — a group game in which the participant chooses numerical or symbol combinations; bingo — a group game using numerical cards or an electronic board; and the totalizator — a game conducted through players placing bets on the forecast of the outcome of a competition, a game or some event, the winnings depending on the size of the bet and the outcome. Organizing a totalizator is prohibited where the result may be known in advance to one or both parties. A lottery is a voluntary group or mass game in which the organizer plays out a prize fund according to publicly published rules; the occurrence of a win is chance and cannot be specially arranged. The law separately defines the systematic-electronic form — the conduct of games via the internet, telephone or specially equipped electronic means — and its international variant, where participation is not permissible for citizens of Georgia. It also defines the player, the person dependent on gambling and the list of such persons, the prohibited person and the list of prohibited persons, the gaming hall, the casino, the slot-machine hall and the gambling club. The casino safe keeps a reserve amount — of no less than 10 000 GEL per each casino table.
Which games stay outside the law
The law sharply separates games of skill: lotteries, gambling and profitable games do not include games conducted using machines, devices, the internet, the telephone and other means in which the element of chance is not provided for. Their purpose is the testing or demonstration of the special knowledge, intellect, dexterity, adroitness or other special ability of the participants. This distinction is of practical importance: where the outcome depends not on chance but on skill, the activity does not fall under the permit regime of gaming business.
The permit requirement
On the territory of Georgia the conduct of every kind of gambling and/or profitable game, their organization in systematic-electronic form, and the supply of gambling and/or profitable games require a permit in accordance with the Law on Licenses and Permits. Carrying on this activity without a permit, as well as non-fulfilment of permit conditions, is considered a violation of the law and entails the liability determined by the legislation. Only the organization of the games provided by this law and the distribution of their tickets are permissible.
The law also imposes restrictions: it is prohibited to issue a permit for organizing an incentive game for the purpose of the rapid and effective sale of tobacco products, tobacco accessories and/or devices intended for tobacco consumption, and to use such products as prizes in incentive games and lotteries. In the internal marine waters and the territorial sea of Georgia, on any floating object, it is prohibited for natural and legal persons registered in Georgia to organize the games provided by this law.
What a player and an organizer should know
For the player the essentials: a lawful game is conducted only by a permit-holding organizer, in the forms established by law; games of skill without an element of chance remain in a different regime. For the organizer: every activity in this sphere must be covered by a permit, otherwise liability is unavoidable. Between these two positions stands gaming law — and knowing it precisely protects both sides.
Frequently Asked Questions
The most frequent questions about the gaming business.
Where may gambling games be organized?
Only in a casino, a slot-machine hall, a gambling club and/or in the systematic-electronic form provided by law; a gambling tournament may be organized both on the permitted premises and beyond them.
When is a totalizator prohibited?
Where the result may be known in advance to one or both parties.
Who is a prohibited person?
A person employed in a budgetary organization, in a national regulatory organ or in the National Bank of Georgia, and a member of a socially vulnerable family registered in the unified database — they may not participate in gambling or profitable games, except incentive games.
What restrictions concern tobacco products?
It is prohibited to issue a permit for an incentive game aimed at the rapid and effective sale of tobacco products and to use such products as prizes in incentive games and lotteries.
How We Help on Legal.ge
The lawyers of Legal.ge work on gaming-business matters: we assess whether your activity falls under the permit regime, assist in obtaining a permit and complying with its conditions, and explain the demarcation between types of games. Contact us — precise knowledge of this sphere’s terminology reduces risk for both sides.