The legal regime of sports betting in Georgia
Organizing sports betting in Georgia is a permit-based activity: the law places it in the category of profitable games — the totalizator — and subjects it to specific permit conditions. This page explains the types and terms of permits, the player-protection norms running through this law, and the requirement to publish the rules of the game. If you intend to enter this market or already operate on it, this frame determines what is possible and what is prohibited.
Permit types and regime
Under the law, permits are required for organizing a totalizator; organizing totalizator games in systematic-electronic form; and international organization of totalizator games in systematic-electronic form. The same list covers organizing a casino, a slot-machine hall, lotto, bingo, a gambling club, an incentive game, and the supply of gambling and/or profitable games. These permits are issued only to an entrepreneur registered in Georgia.
For the totalizator the rule is as follows: a permit for organizing totalizator games in systematic-electronic form is issued to the holder of the totalizator organization permit, while a permit for international organization is issued without the organization permit. Moreover, under each permit only one website under a single internet domain name may be organized. The terms are also defined: the totalizator organization permit and the international organization permit are issued for 5 years, while a systematic-electronic organization permit issued on the basis of an organization permit is issued for the remaining term of that permit. The permit for the supply of games is issued for 5 years. Lotto and bingo permits are likewise issued for 5 years, while an incentive-game permit is issued for 1 year.
Restrictions important for the organizer
The law imposes a number of restrictions touching the permit status of the organizer. A permit is not issued where recognized tax arrears exist. Transferring a permit to another person is prohibited. It is prohibited to issue a permit to a person whose official with management and representation powers, founder/partner or beneficial owner has been convicted, or has a record for an intentional economic crime, including in the sphere of financial activity, or for an intentional serious or especially serious crime, unless the conviction has been expunged or extinguished.
There is also a rule for cessation: where the activity under a totalizator organization permit ceases or is suspended, the activity under the systematic-electronic organization permit obtained on its basis may be carried on during the current quarter, but for no more than 60 calendar days. In each subsequent quarter such activity is permissible only if the physically arranged object renews its functioning for at least 30 days. Where the permit is cancelled, the systematic-electronic permit obtained on its basis also lapses. The rules for disposing of funds placed in a player's account upon cessation or cancellation are set by the minister of finance.
Player-protection norms
The law protects the player with two clear guarantees. First: gaming machines must provide for at least 80 percent of the placed bet as winnings — this norm applies precisely to the regime of gaming machines, ensuring that a minimum share of the amount placed returns to the player as winnings. Second: the rules of the game must be posted at the place where the game is conducted and must be presented to the player upon first request — transparent rules are the precondition of an informed choice by the player.
On the modern market, where sports betting mostly takes place online, these guarantees are joined by restrictions such as the prohibition on organizing gambling or profitable games in systematic-electronic form at an internet service facility, and on placing computers or similar electronic devices at an object intended for gambling for the purpose of participation in a systematically-electronically organized gambling game. It is likewise impermissible for there to be the possibility of receiving winnings in kind when participating in a gambling game.
Practical advice
For the player: request the rules of the game at first demand — it is your right; and remember that on gaming machines a minimum payout is protected by law. For the organizer: observe precisely the permit type and term, do not transfer it to anyone else, clear any tax arrears before applying, and take into account the quarterly transition rules on cessation. The law of sports betting lives exactly in these details — and ignoring them counts as a breach of permit conditions.
Note further that upon the declaration of a state of emergency or martial law the Government of Georgia may introduce a different procedure for permit activity in this field, so the regulation is sensitive to emergency situations. Location and personal filters matter as well: a permit for arranging a gambling club is issued only in the municipality of the city of Tbilisi, and only to the holder of a permit for arranging a casino and/or a slot-machine hall, and the club must be arranged as an independent, separate object.
Frequently Asked Questions
Below are the most frequent questions about the permit regime for sports betting.
Who may receive a totalizator permit?
Only an entrepreneur registered in Georgia, and the transfer of a permit to another person is prohibited.
For what terms are permits issued?
The totalizator organization and international-organization permits are issued for 5 years; an organization permit issued on the basis of an existing permit runs for its remaining term; an incentive-game permit is issued for 1 year.
What guarantees does the player have?
On gaming machines at least 80 percent of the placed bet must be provided for as winnings, and the rules of the game must be presented to the player upon first request.
How We Help on Legal.ge
The lawyers of Legal.ge assist with the permit issues of gambling and profitable games: we assess which permit and term fit your plan, explain the restrictions and cessation rules, and defend you when a player’s rights are violated. Contact us — a precise understanding of the permit regime saves time and reduces risk.