The Totalizator: Concept and Model
The totalizator belongs to the group of profitable games: under the third article of the law it is a game conducted on the forecasts of players of the course of a competition, a game or the result of some event, by placing bets, while the winnings depend on the size of the bet and the result. The same definition prohibits the organization of a totalizator in cases where the result may be known in advance to one or both parties. A totalizator is conducted in a specially equipped building or part of it, and under the consolidated edition of the law — also in a systemic-electronic form.
This nature of the model — the dependence of winnings on the pool of placed bets — distinguishes the totalizator from casino games and is reflected in the permit logic as well: it has its own permit categories.
The Two Permit Categories
Under the eleventh article of the law, the organization of a totalizator and the organization of totalizator games in a systemic-electronic form are subject to permitting. The latter is issued only on the basis of a permit for organizing a totalizator, and a single permit allows the organization of no more than 2 websites under internet domain names — with two domains, one for players holding Georgian citizenship and the other for foreign players. A totalizator organization permit is issued for a term of 5 years, and the systemic-electronic one — for the remaining term of the basis.
The sequence of termination and suspension is also determined: upon termination of the activity envisaged by the totalizator permit, the systemic-electronic activity is admissible during the current quarter but for no more than 60 calendar days; in each following quarter — only upon renewal of the physically equipped object for at least 30 days. Upon cancellation of the permit, the systemic-electronic permit obtained on its basis is also terminated.
Change of Location and Documentation
The thirteenth article of the law determines the procedure for changing the location of totalizator, lotto and bingo objects: the organizer submits to the Revenue Service a contract with the person preparing the tickets — indicating the quantity and numbering of the tickets to be prepared, the conditions of the game — the regulations, or in the systemic-electronic form the rules of the game, a sample of the ticket, and an authorization certificate for the essential products to be used.
The obligations to notify of changes are also active: in the case of arranging a cash desk, information is submitted before the amendment of the regulations; and the holder of a totalizator permit, upon a change in the number of terminals or of essential products, is obliged to notify the Revenue Service no later than 2 days before implementation and to submit an authorization certificate. For a non-electronic totalizator the law also defines the terminal device — a device meeting the requirements of the minister of finance and ensuring the reflection of each ticket in the electronic control system.
Frequently Asked Questions
What is the difference between the two permits?
A totalizator organization permit concerns a physical object and is issued for 5 years; the systemic-electronic permit is issued only on the basis of that permit and remains in force for its remaining term.
Is the relocation of the object possible?
Yes — the law determines the procedure for changing location with the submission of documentation: the contract with the ticket printer, the regulations or game rules, the ticket sample and the authorization certificate.
How many websites are possible?
Under the systemic-electronic permit — no more than 2 internet domains; with two domains, one serves Georgian players and the other foreign players.
What happens upon termination of the activity?
The online activity continues during the current quarter but no more than 60 calendar days; in subsequent quarters only upon renewal of the object for at least 30 days.
How We Help on Legal.ge
The Legal.ge team guides totalizator permit matters in every direction: from the choice of permit and the drafting of regulations to the calendar of notifications of changes.
Contact us through Legal.ge — a model built on the pool of bets requires precise permit planning, and we assemble it in the language of the law.
Two further observations from practice. First: in totalizator projects the decisive element is often the ticket infrastructure — the contract with the printer, with quantity and numbering, is a document established by law and needs reconciliation with production planning. Second: the obligations to notify of changes — the number of terminals, essential products, the address of a cash desk — operate continuously, and their calendar must be recorded together with the operational plan.
Finally, in permit planning note that the activity of the physical object and the online format are tied together by knots: the termination of the object limits the online regime, and the cancellation of the permit stops it altogether. This dependence should be written into the business plan as a separate line of risk and planned with appropriate fallback scenarios.