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"I do not know why the sector’s representatives say that this regulation will bring us back 20 years; if we look at the scale of regulation now, this business is regulated in all countries of the world and quite strictly. I cannot share the statement that regulating the gambling business should be some kind of surprise for anyone. Globally, there are different age limits and in some places, it [gambling] is completely forbidden or there are quite different practices in this direction,” Lasha Khutsishvili said.
There will be a single limit for street or online games and people under the age of 25 will be banned from playing, he stated.
“ We have decided that the limit should be 25 years. We will listen to the arguments, but this is the decision that has been made at this stage, " the finance minister added.
According to the minister of finance, the changes will be designed in such a way that the amount of taxes paid to the state due to them will not be reduced because the taxation will increase, leaving budget revenues unchanged.
The new regulations include the prohibition of street and online gambling for citizens under 25, a ban on games for public officials, a ban on gambling for the economically vulnerable population. In total, 1 million citizens are banned from playing. According to the minister of finance, financial sanctions for violation of this rule will be provided to gambling providers.
The gambling taxation is changed in the sense that rather than normal corporate tax the gambling companies will be subject to a 10% GGR (gross gambling revenue – the difference between the revenues and sums disbursed as prizes) tax. According to the minister of finance, this change will increase their tax base by 65-70%.
Gambling advertising will be prohibited, which includes TV and outdoor advertisements. In the online space, the ban will apply only to Georgian websites, where the placement of advertisements of gambling companies will be banned. Advertising bans do not apply to sponsorship, gambling companies will still be able to sponsor football clubs, TV shows or other activities, although the appearance of their brand and logo will be restricted.
A "blacklist" regulation will be adopted. As a result, a family can be barred from gambling if a member of it requests this in court and provides relevant (mostly economic) reasoning. Citizens will thus be included in the "blacklist" on the basis of their own application.
Transferring money from one person to another using the system of a gambling provider is prohibited, under the new regulations.
It is also prohibited to transfer money to the accounts of foreign gambling providers. This ban will apply to banks and payment system providers registered in Georgia. Its purpose is to prevent the use of foreign gaming systems by citizens.
Incomes of revenues from gambling will be subject to a 2% income tax.
34 GEORGIA Country Report December 2021 www.intellinews.com