Georgia Parliament approves casino tournaments with 80% foreign-participant threshold

Press reporting indicates that Georgia's Parliament has given the green light to a law permitting casinos to run international gambling tournaments. The vote at the final reading was 73 in favour and five against, according to Georgia Today, and the measure went through two plenary sessions before approval.

Lawmakers from the ruling Georgian Dream party brought the bill forward. In the course of the deliberations, the required minimum proportion of participants from abroad was lifted from 70% to 80%. A proposed clause that would have fined organisers GEL 150,000 (US$57,815) for holding international gambling tournaments without authorisation was dropped.

The approved law describes an international gambling tournament as a casino-organised competition whose prize pool the organiser guarantees beforehand, with no less than 80% of players arriving from overseas. Gaming tables used solely for such tournaments escape the gambling business fee when the prize pool is above GEL 3 million (US$1.16 million). Revenue generation from these tournaments is also permitted, and they can take place at licensed casino premises or at other venues.

A 20% tax applies to the taxable income individuals receive from taking part in international gambling tournaments. Winnings are untaxed for foreign nationals who compete in tournaments whose prize pools are above GEL 3 million (US$1.16 million). An organiser breaking the licensing rules for international gambling tournaments faces a GEL 50,000 fine (US$19,272).

Criticism of the legislation has come from the Georgian Orthodox Church Patriarchate and from the Public Defender. At the second reading, members of People's Power, a party aligned with the parliamentary majority, asked why the bill needed fast-tracking. Eka Sepashvili warned that the explanatory note did not weigh the possible social costs, stating: "We are talking about the possibility that the bill could lead to the undesirable promotion of these games, which are one of the significant problems facing society." The For Georgia parliamentary faction cast its vote against the legislation.