Georgia’s Parliament has approved gambling amendments requiring foreign nationals to account for at least 80% of participants in qualifying international tournaments.
Events with prize pools exceeding GEL 3 million (approximately $1.16 million) can qualify for an exemption from gaming business fees on eligible club tables. Approval came at the third and final reading, with 73 MPs voting in favour and five against.
Parliament Raises Foreign Participation Threshold During Legislative Deliberations
Amendments to the Law of Georgia on Organising Lotteries, Gambling and Other Prize Games establish a framework for international tournament organisation, eligibility and financial treatment.
Shota Berekashvili, Economic Policy Committee chair and a co-author, presented the final version. He said lawmakers revised the definition of international gambling tournaments and made further editorial changes.
During deliberations, the minimum foreign participation requirement increased from 70% to 80%. Related changes also addressed other laws, including penalties for breaches of licensing requirements.
According to Berekashvili, Georgian citizens may represent no more than 20% of a qualifying event’s participants. So, organisers must establish both nationality and eligibility when assessing if their tournament meets the legal definition.
Casino Licence Holders Can Organise Events Inside Or Outside Licensed Venues
A qualifying international gambling tournament must be organised by a casino licence holder and satisfy the foreign-participation threshold.
Events may take place at casino-licensed premises or elsewhere, provided the applicable legal and licensing conditions are met. Choosing an external venue does not remove authorisation requirements or alter the eligibility rules.
Existing restrictions on Georgian participants also remain effective. These include restrictions affecting public servants and people on prohibited lists. Responsibility for checking participants rests with organisers. Hence, compliance concerns who may take part as well as whether the tournament meets the required international composition.
Club Table Fee Relief Depends On Exclusive Use And Prize Pool Size
The exemption applies where a club table is used exclusively for an international gambling tournament and the event’s prize pool exceeds GEL 3 million.
Both conditions must be satisfied. An event cannot qualify for the relief solely because its prize pool exceeds the threshold, nor does international status alone remove the table-use condition.
Other tax and regulatory obligations continue to apply. Therefore, the measure is a defined exemption from the gaming business fee on qualifying tables. Organisers must monitor how tables are used alongside participant eligibility and nationality.
Separate Fines Apply To Licence Breaches And Unauthorised Tournament Activity
Breaching international tournament licence requirements carries a GEL 50,000 penalty, approximately $19,250. Organising or holding an event without authorisation attracts a separate GEL 150,000 fine, approximately $57,750.
These provisions distinguish failure to comply with licensing conditions from operating a tournament without permission. Organisers remain responsible for meeting the requirements attached to their authorisation and any claimed fee exemption.
Fast-Track Approval Prompts Questions About Social Risks And Expert Scrutiny
Opposition MPs criticised the accelerated legislative process and questioned whether the amendments had received sufficient examination.
The Public Defender of Georgia also called for a comprehensive assessment of implications for human rights and public health. Concerns included limited opportunity for expert participation and detailed consideration of potential social effects.
Government representatives and sponsors highlighted possible tourism and economic benefits. Critics questioned whether those expectations had been weighed adequately against the risks before approval.
Defined eligibility thresholds and defined fee relief give organisers a basis for planning international events, but implementation requires evidence that each condition is met. Nationality checks cannot replace existing restrictions on participation, and fee relief should not be presented as wider tax immunity.
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