Georgia Approves International Casino Tournament Framework with Tax Exemptions

Georgia is taking a bold step in its gambling policy by focusing heavily on the international tourism market. On October 28, the parliament in Tbilisi approved a legislative package designed to establish the country as a hub for high-profile casino events. With a clear majority of 73 to 5 votes, the amendments passed their third reading. This move creates a legal distinction between ordinary gambling offerings and premium international tournaments, which will now benefit from special privileges. The focus is clearly on foreign guests to bring foreign currency into the country and support the economy during the off-season.

The new legislation was fast-tracked, causing friction within the parliament. MPs from the ruling Georgian Dream party, including Shota Berekashvili and Irakli Mezrishvili, pushed the proposal forward. One of the most notable changes from the original draft is the increase in the quota for foreign participants. To be recognized as an international tournament, at least 80% of the players must now be foreigners. Previously, a 70% threshold had been discussed. This highlights the government's intention to protect the domestic market while attracting high-spending clientele from abroad.

Numbers and facts

Events with massive prize pools will be particularly lucrative for organizers and players. When a guaranteed prize pool exceeds the threshold of 3 million Georgian Lari (GEL), which is approximately €1.04 million, extensive incentives apply. Gaming tables used exclusively for such tournaments will be exempt from standard gambling business fees. The regulation also offers financial benefits for participants: winnings from tournaments above this million-euro mark are completely tax-free for foreign nationals. For smaller prize pools or domestic participants, a 20% income tax is generally applied.

Violations of the strict requirements for new tournament permits will be costly. The law stipulates fines of approximately €17,300 (50,000 GEL) if conditions are not met. It remains unclear whether separate penalties for unauthorized organizers were included in the final text. Although the parliament has approved it, the official publication and exact commencement date still depend on the final signature.

Background

The political debate in Georgia was heated. While supporters like Shota Berekashvili, chair of the Economic Policy Committee, compared the tournaments to major international sporting events, resistance arose from prominent figures. The Georgian Orthodox Church Patriarchate and the Public Defender raised concerns about the social impact. They fear that the popularity of gambling will further increase and exacerbate social issues. The opposition party For Georgia voted unanimously against the package, criticizing the speed with which the law was passed.

"The proposed events can be compared with international competitions that can draw thousands of participants." - Shota Berekashvili, Chair of the Economic Policy Committee

Why it matters for German players

For players from Germany, the Georgian plans do not immediately change their legal status at home. However, those planning a trip should know that Georgia is actively recruiting international audiences with these tax-free high-roller events. In Germany, the situation remains strictly regulated by the State Treaty on Gambling 2021 (GlüStV 2021). There is a fixed stake limit of 1 Euro per spin for virtual slots and a monthly deposit limit of 1,000 Euro, monitored via the LUGAS system. These protective measures do not apply in Georgia. German players participating in such international tournaments must be aware that they are operating outside the protection of the German Joint Gambling Authority of the States (GGL).

What it means for GGL-licensed casinos

GGL-licensed German providers face a challenge. While Georgia lures players with tax exemptions for million-euro winnings and a lack of stake limits, German platforms must adhere to the strict requirements of the whitelist. This means operators can hardly compete for professional high rollers, as German law prioritizes player protection over revenue maximization. The contrast between Georgia's liberal tourism strategy and the restrictive German model could lead professional tournament players to increasingly seek opportunities in the East. In the long run, it remains to be seen whether the GGL will need to adjust its strategy for poker tournaments to prevent migration to unregulated or foreign markets.