Georgia approves international casino tournaments with tax exemptions

Georgia's parliament has approved a law allowing casinos to organise international gaming tournaments, with tax relief for events that have large prize pools. The measure was passed in its final reading by 73 votes to five after two parliamentary sessions, according to the report. It was promoted by deputies of the governing Georgian Dream party.

The law defines an international gaming tournament as an event organised by a casino with a prize pool guaranteed in advance and a field made up of at least 80% foreign citizens. The threshold was raised from 70% in the initial proposal. For tournaments with prize pools above about €1.04m, tables used exclusively for the competition are exempt from the tax on casino gaming. Organisers may also earn revenue directly from tournaments, which can be held inside authorised premises or at external venues.

Taxable income received by individuals from taking part in tournaments is subject to a 20% rate. Foreign citizens who win at competitions with prize pools above about €1.04m are exempt. Violations of the authorisation requirements carry a fine of about €17,300.

The approval drew criticism from the Patriarchate of the Georgian Orthodox Church and from the public defender. Doubts were also raised within the parliamentary majority. Eka Sepashvili of People's Power contested the speed of the legislative process and the absence, in the explanatory report, of an assessment of possible social costs linked to the promotion of gambling. The For Georgia parliamentary group did not support the measure.