Page 12 - BNE_magazine_11_2019

12 I Companies & Markets bne November 2019
Georgia’s booming, little regulated gambling industry doubled in size during 2018
Iulian Ernst in Bucharest
Gross revenues generated by Georgia’s gambling industry hit Georgian lari (GEL) 13.8bn (€5bn, and equivalent to one third of the country’s GDP) in 2018, more
than double the sum recorded the year before, according to Business Media and BusinessPress. The publications cited data from national statistics office Geostat. Independent estimates put actual turnover at GEL20bn, given that the companies involved in the sector are subject to mild supervision.
The gambling industry’s turnover in Georgia has increased almost 200-fold in the past 10 years.
Most generated profits are sent to offshore companies that operate casino and other betting and gaming enterprises in Georgia.
Most brick and mortar casinos operating in the small nation are located in Batumi, known as “The Las Vegas of the Black Sea”, and half an hour from the border with populous Turkey. That fact points to how Georgia’s gambling industry evolved: it started with casinos dedicated to Muslim customers in neighbouring countries who lack such attractions at home.
Business built up in Georgia's gambling capital of Batumi served as a springboard to developing profitable online gambling operations.
They served as a platform for promoting online operations, creating loyal customers.
Loose advertising regulations in Georgia then made it possible for a broad expansion of online casinos throughout the country. The high poverty rates in the nation have also helped drive the spread of gambling, with negative social effects.
“The gambling industry’s turnover in Georgia has increased almost 200-fold in the past 10 years”
A large part of Georgia’s gambling industry is accounted for by online operations. The country’s most visited websites are Adjara (a portal for gambling sites and sports news), adjarabet.com and crystalbet.com. The trio are among the 10 global websites most visited by Georgians (they show up in the rankings besides websites such as youtube.com and facebook.com).
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