The Nature of the Gambling Business Fee and the Budgets
The gambling business in Georgia pays a special fee regulated by the Law of Georgia on the Gambling Business Fee. Under the second article of this law, the gambling business fee, except the one established for organizing a lottery, is a mandatory payment into the municipal budget, while the fee established for organizing a lottery is a mandatory payment into the state budget. The fee is paid by the persons determined by the same law, in the amount and under the procedure established by it.
For the hotel-casino model this determination carries double weight: on the one hand, the fee for a casino and a slot machine hall goes into the local budget, which gives the municipality a fiscal interest within the ranges of the rates; on the other hand, the amount of the fee depends directly on where the taxation object is physically placed. Therefore the choice of a hotel-casino location is determined not only by tourism logic — it is the central parameter of fee budgeting.
Taxation Objects
The fourth article of the law determines what is taxed with the gambling business fee. The objects are: the casino table, the club table and the slot machine; the prize fund of a promotional game; casino, slot machine and totalizator games organized in a systemic-electronic form on the basis of the corresponding permit; the difference between the total value of lottery tickets sold and the prize fund; and also a cash desk of systemically-electronically organized games placed outside the facility organized on the basis of an organization permit.
The list of objects reflects the real anatomy of the sector: both physical units (a table, a machine) and online activity and monetary infrastructure (a cash desk) are taxed separately. For a hotel-casino this means that the budget must simultaneously plan the placement of casino tables and of other objects — each of them creates a separate tax burden.
National Rate Ranges
The fifth article of the law differentiates the rates by type of gambling business and establishes the ranges. For each casino table the rate is from 20 000 to 40 000 lari per quarter inclusive; for each slot machine — from 2 000 to 4 000 lari per quarter inclusive; for each promotional game — 10 % of the prize fund.
- for casino games organized in a systemic-electronic form — from 250 000 to 300 000 lari per quarter inclusive;
- for slot machine games organized in a systemic-electronic form — from 250 000 to 300 000 lari per quarter inclusive;
- for totalizator games organized in a systemic-electronic form — from 250 000 to 300 000 lari per quarter inclusive;
- for organizing lotteries — 10 % of the difference between the total value of tickets sold and the prize fund;
- for each cash desk of a systemically-electronically organized game — from 1 500 to 20 000 lari per quarter inclusive;
- for each club table — from 4 000 to 14 000 lari per quarter inclusive.
The law also contains a separate note: where the holder of a casino organization permit uses a club table only for holding a gambling tournament, it is entitled not to pay the fee established for the club table. This exception matters when planning tournament formats, but its application must correspond precisely to the case envisaged by the law.
The Municipal Rate and the Importance of the Hotel-Casino Location
The law establishes the ranges at the national level, while the concrete rate is the rate in force in the territory of the actual placement of the taxation object: the organizer of the game acquires the fee payment mark in the tax organ precisely under this principle. Since the fee is credited to the municipal budget, the fiscal burden of identical objects placed in different municipalities may differ within the range.
For a hotel-casino project the practical conclusion follows: when choosing a location, a comparative recalculation is needed — how many casino tables and slot machines will be placed at the facility and how this is reflected in the municipal rate. The concrete rate of a particular municipality is established by a separate decision, so before final budgeting the verification of the rate set by the local council is indispensable — we recommend completing this step before contractual negotiations.
Reporting and the Payment Procedure
The sixth article of the law determines the payment mechanics. The organizer of a promotional game pays the fee before the start of the stage, and the amount payable is 10 percent of the prize fund of the stage. Holders of permits for promotional games, a casino, a gambling club and/or a slot machine hall, as well as of systemic-electronic organization permits, pay the fee upon acquiring the fee payment mark — before the start of the reporting quarter.
The fee payment mark is a mark issued electronically which confirms the payment of the fee and the right to hold the corresponding object; it must contain the numbering field (range) assigned by types of objects and the taxation period. The lottery organizer pays the fee into the state budget quarterly, no later than the 15th day of the month following the reporting quarter. The rules for acquiring marks, allocating numbering ranges and closing inactive objects are established by the minister of finance — administrative details are thus regulated by subordinate acts and require verification with the regulator.
Frequently Asked Questions
Where does the gambling business fee go?
Except for the fee established for organizing a lottery, which is paid into the state budget, the gambling business fee is a mandatory payment into the municipal budget. This means that the fee for a casino and a slot machine hall finances the local budget.
How much is the fee for a casino table and a slot machine?
The law establishes ranges: for each casino table — from 20 000 to 40 000 lari per quarter inclusive, and for each slot machine — from 2 000 to 4 000 lari per quarter inclusive. The concrete rate is the rate in force in the territory of placement and is set by municipal decision.
When is the fee paid?
The organizer of a promotional game pays before the start of the stage — 10 percent of the prize fund. Other organizers pay upon acquiring the payment mark before the start of the reporting quarter, and the lottery organizer quarterly — no later than the 15th day of the following month.
When is the fee not paid on a club table?
Where the holder of a casino organization permit uses the club table only for holding a gambling tournament, it is entitled not to pay the fee on that table. In other cases of use this exception does not apply.
How We Help on Legal.ge
The Legal.ge team will help you budget the fee for a hotel-casino project: we will recalculate the burden of the planned objects according to the ranges of the law, prepare a comparative analysis for different locations and indicate which details must be verified against local acts.
Contact us through Legal.ge — our analysis will give your financial model a legal foundation and help you avoid fee-related errors.