Lottery law in Georgia revolves around a single statute — the Law of Georgia on Lotteries, Gambling and Other Profitable Games — which defines the goals of state regulation, the procedural obligations of the lottery organizer before the Revenue Service, the rules for conducting the draw, and the foundations of taxation and accounting. On this page we explain this system in full, on the basis of the provisions under which it operates today. Legal.ge assists both established and beginning organizers in fulfilling these requirements precisely.
The purpose of the law: state regulation and consumer protection
The second article of the law states its aim directly: the purpose of this law 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 of Georgia on Licenses and Permits. Lottery law is therefore built on a two-sided balance: on the one hand, the state regulates and supervises the sphere; on the other, it protects the lawful interests of the player as a consumer.
This purposive norm defines the meaning of the entire regulatory apparatus that follows: the deadlines for submitting documents, the publicity of the rules and the independence of the draw commission all serve the protection of the player's interests. When you read the procedural requirements below, keep this dual objective in mind — it explains why the law is so demanding on transparency and timing.
Consent from the Revenue Service: deadline and documentation
The first paragraph of the thirty-first article establishes that the lottery organizer is obliged, in order to obtain consent for organizing the game, to apply to the Revenue Service no later than 2 weeks before its organization and to submit a defined set of documents. The list of documents differs depending on whether a draw-based lottery or an instant lottery is being organized.
For a draw-based lottery, the following must be submitted: the conditions of organization (regulations), which must cover the general rules of the game, the lottery start date, the limited deadline and place for paying out winnings, the ticket price, the procedure and deadline for reviewing claims, and the quantity and numbering of the tickets to be printed; a contract between the organizer and the person who prepares the tickets, indicating the quantity and numbering of the tickets to be produced (except where the organizer prepares the tickets itself); and a sample of the draw-lottery ticket.
Experience shows that the details are the most troublesome part of the documentation: the numbering and quantity of the tickets must match those indicated in the contract, the place of payout must be defined exactly, and the claim-review deadline must be measurable and accessible to the player. Precision in these elements prevents later disputes before they arise.
For an instant lottery, the regulations require the same composition, supplemented by the amount of the prize fund and a list of the prizes, their quantity and unit value. A contract with the producer of the tickets and a sample ticket must likewise be submitted. Preparing this documentation correctly the first time avoids delays that could push the whole schedule back.
The duty to notify about changes
If a change is planned that does not cause a substantial change of the game — a change of director or legal address, the printing of an additional quantity of tickets, and similar — the organizer is obliged to notify the Revenue Service in writing 3 days in advance. This is a simple but frequently neglected duty, and its violation may be assessed as non-compliance with permit conditions.
Publicity of the rules, the draw commission and reporting
The organizer is obliged to ensure the publicity of the rules of the game and their unhindered delivery to players. In addition, a commission is created which ensures the drawing of the prize fund in compliance with the conditions of organization (the regulations); the commission must consist of no fewer than 3 invited members independent of the lottery organizer. This requirement of independence is the guarantee of the credibility of the draw.
Information on the course and results of the draw must be submitted to the Revenue Service within 5 working days. An instant lottery may be organized for a period of no more than 2 years — a ceiling that should be taken into account already at the business-planning stage.
Holding the draw even when tickets have not been fully sold
The fifteenth article imposes a clear restriction on the lottery organizer: the draw is held even in the case of incomplete sale of tickets. A shortage of sold tickets cannot become a pretext for cancelling or postponing the draw, because the player's expectation is protected by law.
Taxation, accounting and the assistance of Legal.ge
The thirty-fourth article develops the financial side: the taxation and accounting of the activity of lotteries, gambling and profitable games are carried out in accordance with the legislation of Georgia. If you are planning to organize a lottery or are already conducting one, Legal.ge will help you prepare the documentation, meet the deadlines and control compliance with permit conditions.