The Procedural Axis of Regulator Communication
In the gambling business, relations with the regulator are not episodic — they are a systemic process that stretches from obtaining the permit to everyday correction requests. Article 7 of the Law of Georgia on Organising Lotteries, Gambling and Promotional Games establishes that the issuance of permits for organising gambling and promotional games and for supplying games, the introduction of amendments to them, their revocation and their passage through the official permit registry are carried out by the Revenue Service, in accordance with the Law on Licences and Permits and with this law. That is the single door through which permit status changes, and every communication must therefore be tailored to the procedural rules of that door.
The second tier of the regulator is the Ministry of Finance: Article 36 directly provides that the Ministry of Finance of Georgia is obliged to impose control over compliance with every point of the law and of the draw rules (the regulations). A correction request may therefore concern not only the law but also your own submitted regulations — which increases the importance of documentary precision even further.
What the Inspection Regime Looks Like
Article 7 places control with the Revenue Service: the Service is authorised to verify the reliability of the documents submitted by a permit seeker and their compliance with the requirements of the law, and it has the power to impose control over the fulfilment of permit conditions. During a calendar year, at any time and without quantitative limitation, the state of the permit holder’s compliance with the requirements established by the law and other normative acts may be inspected; the inspection procedure is established by a joint order of the Ministers of Finance and of Internal Affairs.
In addition, the Service is authorised, through a selected person, to introduce an electronic control system and to monitor the fulfilment of permit conditions both within inspections and in ongoing mode — including, where a violation exists, conducting an inspection for the period of a currently valid permit as well. In practice this means that ongoing-regime data — the logs of the electronic system, the state of terminals and machines — is always in the regulator’s hands, and correction requests are built precisely on that data.
Responding to Correction Requests
When a request arrives, it is correctly framed by three questions: who is asking — the Revenue Service, the Ministry of Finance or the Ministry of Internal Affairs; what it rests on — a norm of the law, a point of the regulations, or a contractual obligation; and what form it takes — submission of a document, remediation of a defect, or a fine. Under the law, during an inspection the permit holder is obliged to create appropriate working conditions for the inspector and, immediately upon request, to submit the necessary documents and information.
Documentary discipline here is a matter of survival: every submitted document, notice and explanation must be dated, substantiated and built on the correct basis. With respect to the holder of the exclusive lottery right, the law separately regulates the information duty — the organiser must ensure the provision of the information necessary for control.
Fines and Their Administration
For violating permit conditions, a permit holder is fined by the Revenue Service or by the Ministry of Internal Affairs of Georgia. The imposed fine is payable within 30 calendar days from the handover of the individual administrative-legal act imposing it, and the administration of the payment of fines is carried out by the tax authority under the rules established by the Tax Code of Georgia.
The strictest sanctions concern unauthorised lotteries: the organisation and/or conduct of a lottery by an unauthorised person entails a fine of GEL 50000, and every subsequent organisation and/or conduct — GEL 150000. As for the tender winner’s contractual obligations, the Revenue Service may inspect their fulfilment at any time, which demands constant readiness from the lottery organiser.
Frequently Asked Questions
Who is the primary communication authority?
The Revenue Service, with its exclusive competence over issuing, amending, revoking permits and passing them through the registry. The Ministry of Finance, in turn, is obliged to impose control over compliance with every point of the law and the regulations.
Can an inspection be electronic?
Yes — through the electronic control system introduced via the selected person, which also operates in ongoing mode and, where a violation exists, extends the inspection to the period of the current permit.
Within what period is a fine payable?
Within 30 calendar days from the handover of the individual administrative-legal act, under the administration rules established by the Tax Code.
What fine is provided for an unauthorised lottery?
GEL 50000 for a first organisation and/or conduct and GEL 150000 for every subsequent one; the fining is carried out by the Revenue Service.
How We Help on Legal.ge
We will build a complete system of regulator communication: registration of applications and notices, preparation of responses to correction requests, readiness of documentation for inspections, and management of fine cases. Contact us on Legal.ge — relations with the regulator are a process where order always pays for itself.