In 2022, the gambling sector faced a new reality. From March 1, individuals under 25 years of age and civil servants were prohibited from playing, and gambling advertising was also prohibited. From January 1, the rules for taxation of online games have changed. In particular, the business operators have to pay 10% of the difference between the received bets and the given profit, i.e. 10% of the GGR, as profit tax.

Amendments to the Law "On the Organization of Lotteries, Gambling and Profitable Games" entered into force on March 1, according to which participation in gambling games was prohibited to socially vulnerable persons receiving state benefits, persons who apply to the Revenue Service of the Ministry of Finance with a request to use the self-restriction mechanism, and also those who fall into On the so-called "black list" on the basis of a court decision or at the request of family members. Before that, from January 1, the tax pressure on the gaming business increased to 70%.

According to the statistical information requested from the Revenue Service, the amount of taxes and fees paid by the gambling sector has decreased.

"The regulations significantly changed the positioning of Georgia in the world. Georgia was very attractive for investors. We have a total of six online operators. Of the six online operators, the three largest operators in the world are Entain, Paddy Power and Betsson Group.

In financial terms, the market lost about 18% of its total revenue. However, this does not mean that people have stopped playing. Any user can freely register on foreign sites, undergo verification through a short message and place a bet. We got this as a result of the meaningless law, which first came into effect on January 1st, and in full - on March. These companies are not under the jurisdiction of Georgia, because the state cannot control them. It is very easy to register on these sites and make bank card transfers. Therefore, we got what I predicted, that money will flow abroad and no one will pay taxes in Georgia from this amount. There is complete lack of control, people of all ages can play," says Giorgi Mamulaishvili, head of the administration of the gaming business association.

For many years, the Georgian gaming market has been the hub of the post-Soviet space and the Caucasus region. However, at the end of 2021, the government began to reform the industry and introduce regulations, which seriously worsened its situation and the investment climate in the country. Wrong regulations reduced the tax paid in the budget.

After 2005, when the business was regulated, it came under strict legal framework and full control was established by the state, people were employed, the budget was filled with taxes and permits and licenses. In total, more than 7% of the country's total budget was made up of money from the gaming business. And the income of the companies associated with the gaming business (such as advertising companies, financial institutions, etc.) reached a total of 16%, although the mentioned statistics changed and worsened sharply as a result of unreasonable regulations, and instead of increasing the tax, the funds included in the budget were reduced, and citizens continue to play abroad , on illegal sites.