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Georgia’s booming gambling market: Insights from an industry expert

Kseniia Safronkina
June 20, 2024
4 min
482

Meet Slotegrator at the SBC Tbilisi Summit on June 25-26 to find out how our solutions can help you in the Georgian gambling market — and read this article first for a quick market overview.

The Georgian gambling market is quickly becoming one of the most dynamic and fast-growing in the region.

With new regulations and a surge in online players, it offers exciting opportunities for foreign investors and operators. In this article, we take a closer look at the current state and prospects of the Georgian gambling market, featuring insights from Arthur Movchaniuk, business development manager at Slotegrator. Arthur and our team will attend the SBC Tbilisi Summit on June 25-26, 2024, where these topics will be further explored.

A brief overview of Georgian gambling market

For many years, Georgia’s gambling market has been a tourist magnet, bolstering the industry by drawing in visiting players from countries like nearby Turkey.

In recent years, though, the country’s gambling industry has experienced significant growth. With support from the authorities, industry development accelerated, attracting even more foreign visitors and investors. This trend became especially pronounced after the pandemic, when land-based casinos were shut down, leading to a flourishing iGaming industry. Despite the closures, the sector achieved an impressive growth rate of 23%.

Arthur Movchaniuk, business development manager at Slotegrator, provides insights into the current state and prospects of the Georgian gambling market. He observes, “The gambling market in Georgia is one of the most dynamic and rapidly growing in the region, continuing to develop and increase the number of online players. This creates favorable conditions for foreign investors and operators looking to enter the Georgian market.”

Regulatory landscape

However, along with its success, there have been some drawbacks.

The rising popularity of gambling has seen pushback from some of the population, prompting a response from the government.

The Revenue Service, responsible for issuing licenses, developing tax policies, creating a conducive environment for industry growth, and enforcing industry rules, has introduced new restrictions in 2022. These restrictions have limited access to gambling for over one million adults, including those on government assistance, government employees, and individuals under 25. The Revenue Service will list self-identified gambling addicts and those declared addicts by court order.

It also has affected marketing restrictions, which now limit gambling ads across various media, allowing only sports teams, athletes, or league sponsorships.

Movchaniuk emphasizes the strict regulatory environment governing the online gambling sector in Georgia.

It's important to note that the Georgian online gambling market is under strict regulation. Recently, the Georgian government raised the profit tax for the gambling business from 10% to 15%, and the withdrawal tax increased from 2% to 5%. These measures aim to limit citizens' participation in gambling and increase tax revenues for the budget.

Through thorns to the stars

According to Movchaniuk's observations, the online gambling market in Georgia is growing, even with stricter regulations. It continues to draw significant investments and produce substantial revenues.

Moreover, more and more operators and providers are emerging in the country’s iGaming landscape. Movchaniuk highlights three operators that currently lead the Georgian online gambling market: Crystalbet, Adjarabet, and Crocobet. He also mentions that Amusnet, formerly known as EGT, is the most popular provider in Georgia.

These key players dominate the industry, underscoring the market's robustness and competitive nature.

Future outlook and industry concerns

Movchaniuk also cautions about the potential impact of further tax increases on the industry. "If the authorities continue to raise taxes, operators might shift to gray operations," he warns. This shift could undermine the regulated market, potentially reducing tax revenues and affecting the overall growth and development of the sector.

The SBC Tbilisi Summit: A platform for industry insights

The upcoming SBC Tbilisi Summit will serve as a crucial platform for discussing these trends and challenges. The summit promises to be a pivotal event for stakeholders looking to understand the nuances of the Georgian market and navigate its regulatory landscape effectively.

Our team, including Arthur Movchaniuk, will be present to engage with other industry leaders, share insights, and explore new opportunities in the Georgian gambling market.

We invite you to network with the Slotegrator team at the SBC Tbilisi Summit 2024! Contact us to arrange a meeting with members of our team in advance.

Kseniia Safronkina
Kseniia Safronkina
Copywriter
With four years of experience as a writer, Kseniia effectively communicates complex details about business processes in the iGaming industry to readers. Her bachelor's degree in linguistics allows her to create high-quality content for Slotegrator in two languages simultaneously.

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