A lottery in Georgia is not an ordinary commercial activity: its organization, the distribution of its tickets and the conduct of the draw all operate inside a strict statutory framework created by the Law of Georgia on Lotteries, Gambling and Other Profitable Games. This page explains the three pillars of the lottery organizer's regime in detail — the mandatory permit, the unconditional obligation to hold the draw even when tickets have not been fully sold, and the grounds of liability for violating the law. Legal.ge helps you apply these requirements correctly, so that your game rests on a lawful foundation from the very beginning and the risk of sanctions stays under control.
The permit requirement — the starting condition of lawful organization
The first paragraph of the fifth article of the law begins exactly with this question: on the territory of Georgia, the conduct of all kinds of gambling and/or profitable games, the organization of gambling and/or profitable games 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. In practical terms this means that a lottery organizer may not conduct the game, distribute its tickets or enter into contractual relations with players until the relevant permit has been obtained.
Conducting gambling and/or profitable games without a permit, organizing them in systematic-electronic form or supplying them without authorization, as well as non-fulfillment of permit conditions, is considered a violation of the law and triggers liability defined by Georgian legislation, except for the case provided for by the third paragraph of the same article, which we discuss below. The second paragraph of the article draws the boundaries of permissible activity even more clearly: 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.
Incentive games and the prohibitions linked to tobacco products
Subsequent provisions of the fifth article devote particular attention to incentive games — mechanisms whose purpose is to stimulate sales. It is prohibited to issue a permit for organizing an incentive game aimed at the fast and effective sale of tobacco products, tobacco accessories and/or devices intended for tobacco consumption. This means that the permitting authority itself cannot grant such a permit, even where the application is formally complete in every other respect.
The second prohibition is equally important: the use of tobacco products, tobacco accessories and/or devices intended for tobacco consumption as prizes in incentive games and lotteries, or their distribution by means of a lottery, gambling and profitable games, is forbidden. When forming a prize fund, a lottery organizer must necessarily take these restrictions into account, because an unlawful composition of the prize endangers the legality of the entire game.
The third paragraph of the fifth article also defines the exception: the Government of Georgia is empowered to entrust the conduct of incentive games to the Revenue Service. In that case the rules and conditions of conducting the incentive game are established, and the prize fund is determined, by the Government of Georgia. This is precisely the situation contemplated by the carve-out in the first paragraph, when the incentive game is administered by a state agency rather than by a private organizer.
Territorial limits: the maritime space and services abroad
Lottery regulation also draws physical boundaries. Under the fourth paragraph of the fifth article, the Minister of Finance of Georgia is empowered to determine the services related to activities in the sphere of the gaming business whose provision, directly or indirectly, is prohibited outside the territory of Georgia for the person carrying out such activity. A Georgian lottery organizer may therefore face a defined circle of services that it may not provide abroad.
The fifth paragraph concerns the maritime space: in the internal marine waters of Georgia and the territorial sea of Georgia, as established by the Law of Georgia on the Maritime Space of Georgia, on all kinds of floating objects, natural and legal persons registered in Georgia are prohibited from organizing the gambling and/or profitable games contemplated by this law. The idea of a casino or a lottery placed on board a vessel is, as a rule, impermissible from the standpoint of Georgian law.
Holding the draw even when tickets have not been fully sold
The fifteenth article is short, but it carries a fundamental consequence for the lottery organizer: the organizer of a lottery or a profitable game conducts the draw even in the case where the tickets have not been fully sold. This means that the organizer may not cancel the draw, postpone it or unilaterally change its conditions because of an unexpectedly low volume of ticket sales.
The practical purpose of this rule is the protection of the player's interests: a person who has bought a ticket relies on the commitment that the draw will take place at the appointed time. The commercial risk of incomplete sales is not shifted onto the player, and this circumstance must also be taken into account when questions of liability and dispute resolution arise.
Liability for violating the law
The thirty-seventh article assembles the liability system into three norms. The first paragraph states the general rule: liability for violation of this law is determined by the legislation of Georgia. The second paragraph makes it concrete: the failure by organizers of games and by suppliers of gambling and/or profitable games to fulfill the requirements established by this law constitutes a violation of permit conditions and entails liability in accordance with the Law of Georgia on Licenses and Permits.
The third paragraph addresses conduct that is defined by criminal legislation: the forgery of lottery tickets or of other documents confirming participation in profitable games is punishable under the legislation of Georgia. Presenting a forged ticket may entail legal consequences for a player as well, so knowledge of this norm matters for participants in the game, not only for organizers.
How Legal.ge can help you
Lottery regulations may look simple, but in practice they demand precise legal work: determining the correct form of the activity before requesting the permit, verifying the legality of the prize fund, taking account of the territorial restrictions and managing liability risks early. Our team assists you through all of these steps — from the preparation of documentation to the control of compliance with permit conditions. Contact us so that your lottery rests on a lawful foundation from the outset.