On December 2, a press conference was held at Radisson Blu Iveria in Tbilisi, the purpose of which was to determine the position of the representatives of the sector in relation to the statements of the Prime Minister and the Minister of Finance regarding the expected changes in the legislation on gaming business.

The Gaming Business Association and the entire industry are in complete limbo regarding the bill. Unfortunately, the government speaks only through the media, without taking into account the positions of the entities participating in the sector, local as well as foreign companies that have made the largest investments in the Georgian economy. It is true that the government promised to consult with business, but despite numerous attempts by the sector, no such consultation has taken place.

It is categorically unacceptable to adopt such material changes in an accelerated manner, preliminary consultations, calculations and modeling of what kind of economic effect these changes will cause are required.

Even more disturbing is the form of the statement, which significantly harms companies operating in the sector. It is significant that some of the mentioned companies represent the largest groups in the world, whose shares are listed on international stock exchanges. The statement contains false facts, the disclosure of which creates reputational risks and affects the share price of such companies.

It should be noted here that the statement emphasized the need to increase tax obligations for the sector, and this in the conditions when the existing tax burden is already heavy for the sector - it is 40%, which is about 30% more compared to other businesses. In addition, the announced legislative change, which will increase the tax burden of the online industry to about 70%, makes further business activities impossible, which is especially significant considering the fact that entities participating in the sector have a significant influence on the formation of state and local budgets.

The expected changes in the tax legislation also contradict the guarantees defined by the Constitution of Georgia and violate the conditions established by the "investment protection" agreements signed with Great Britain and Sweden.

It is important that the announced changes will have the greatest negative impact on many sectors of the Georgian economy. For example, we can cite sports, media, telecommunications, financial and IT sectors. Along with the deterioration of economic indicators, the number of unemployed will increase both in the field of gaming business and in related industries, which is critical in the conditions that the unemployment rate in the country is 22%. We are talking about thousands of employees and tens of thousands of people dependent on them.

Additionally, unpredictable, ill-advised legislative initiatives and statements from the state significantly worsen the image of the country, the investment environment and have a negative impact on the inflow of foreign direct investments, which, in turn, is the most important guarantee of Georgia's economic stability. From this point of view, it is especially alarming to divulge false data about the amount of profit distributed as dividends by foreign companies and to present it as an accusation of using their own right by such companies. To say nothing of the fact that projects carried out by businesses and their significant impact on the economy are completely neglected.

It is also worth noting that the gambling business constantly expresses readiness for the introduction of reasonable regulations, which is an example of the numerous changes implemented in the legislation regulating lotteries, gambling and profitable games from 2005 to the present with the active involvement of the business. It is important that both the Gaming Business Association and all major online operator companies operating in Georgia were actively involved in the mentioned process. It is the result of the active participation of the gaming business sector that the legislation regulating the gaming business in Georgia has been refined and brought closer to the Western experience. It is significant that the regulations in force in Georgia on the day of user registration/verification represent the highest standard in the world. As a result, it is impossible for minors to participate in games organized by licensed online operators.

It should be emphasized here that in accordance with the changes made in the gaming business regulatory legislation in 2020, by the government's decision, a person selected by the Revenue Service was involved in the process of business regulation - a regulator, who fully, with direct access, controls the transactions and processes in the business on a daily basis, which represents the full operation of the gaming business. to guarantee transparency.

Taking into account the above, the gaming business is fully legal, transparent and regulated in Georgia today, which is evidenced by the fact that both the largest international companies and others are interested in the Georgian market.