A Risk Map of Gambling-Related Crime
The world of gambling is an environment known for the rapid circulation of property, and it is precisely this that creates the soil in which fraud schemes grow. The Criminal Code of Georgia protects this sphere in several directions: fraud, that is, the appropriation of another’s property or the acquisition of a property right by deception with the aim of unlawful appropriation (Article 180); property damage by deception (Article 185); the acquisition or sale of property obtained by crime with prior knowledge (Article 186); illegal entrepreneurship (Article 192); and legalisation of illegal income, known as money laundering (Article 194). The risk runs both ways: on one side, players and manipulators experience fraud, and on the other, operators and their partners fall under the threat of qualification.
Deposit-bonus schemes, manipulations offering “guaranteed” winnings, forged documents, unlicensed gaming operations and the “washing” of received income are each qualified under different articles, with correspondingly different sanctions — from a fine to imprisonment. Below we explain each direction in detail, so that both the injured party and the business can understand what is at stake.
Fraud: Elements and Sanctions
Article 180 of the Criminal Code defines fraud as the appropriation of another’s property or the acquisition of a property right by deception with the aim of unlawful appropriation. The basic element is punished by a fine, or community service for a term of one hundred and seventy to two hundred hours, or corrective labour for up to 2 years, or house arrest for a term from 1 to 2 years, or imprisonment for a term from 2 to 4 years.
The aggravating forms are separately identified. The same act committed by a group with prior conspiracy, or causing significant damage, is punished by a fine or imprisonment for a term from 4 to 7 years. The same act committed through abuse of official position, in large amount, or repeatedly is punished by a fine or imprisonment for a term from 6 to 9 years. Where the act is committed by an organised group, or by a person twice or more previously convicted of unlawful appropriation of another’s property or extortion, the sanction is imprisonment for a term from 7 to 10 years.
Property Damage by Deception and the Circulation of Criminal Property
Article 185 governs property damage caused to an owner or possessor by deception where the elements of fraud are absent. The basic element is punished by a fine, or community service for a term of one hundred and twenty to one hundred and eighty hours, or corrective labour for up to 1 year, or house arrest for a term from 6 months to 2 years, or imprisonment for up to 2 years. The same act committed by a group with prior conspiracy, repeatedly, or causing significant damage is punished by a fine or imprisonment for a term from 1 to 3 years; committed by an organised group, in large amount, or by a person with relevant previous convictions — by imprisonment for a term from 4 to 6 years.
Article 186 governs the use, acquisition, possession or sale of property obtained by criminal means with prior knowledge. The basic element is punished by a fine, or community service for a term of one hundred and eighty to two hundred hours, or corrective labour for up to 1 year, or house arrest for a term from 6 months to 2 years, or imprisonment for up to 2 years. With aggravating features — by a group, repeatedly, in respect of an automobile, in large amount, or by a previously convicted person — the sanction is a fine or imprisonment for a term from 2 to 5 years, and where committed by an organised group or through abuse of official position, imprisonment for a term from 4 to 7 years. Especially important is the note to this article: for this act a legal person is punished by liquidation or deprivation of the right to activity and a fine.