CIS 2020 in review: Georgia
4H Agency partners Ilya Machavariani and Ivan Kurochkin look back at regulatory developments in Georgia over the last 12 months and assess the coming year for the south Caucasian country
- key changes that were introduced in 2020;
- forthcoming changes in Georgian gambling market in 2021;
- our assessment on the upcoming changes.
Key changes that were introduced in 2020
inter alia- introduction of the regulation for the B2B sector which includes the requirement that all B2B operators to obtain a separate permit (previously a B2B operator could operate in Georgia without the necessity to obtain any permits) and subsequently in obligation of the permit holder to pay a permit fee in the amount of €25,000 each year (permit for B2B activities is issued for five years);
- creation of the electronic control system which aims to establish control over the compliance of B2B and B2C operators within the provisions of existing gambling regulations. This electronic control system should become fully operational starting from 1 January 2021 and the responsible entity for incorporation and following maintenance of such system is Random Systems Georgia (according to the Gambling Law such organisation is acting as a selected person authorised by the government authorities for such activity); and
- introduction of fees connected with integration and usage of the electronic control system by B2B and B2C operators: some of the fees are payable once (amount of such fees may vary from €2.50 to €25,000) and some of the fees are payable periodically (amount of such fees might be up to 5% of GGR (payable monthly) or no more than €1 (payable daily) per each gambling equipment (slot machine)).
Forthcoming changes in the Georgian gambling market in 2021
inter alia- incorporate a company in Georgia;
- obtain the authorisation certificate from Random Systems Georgia proving the compliance of the B2B operator’s products with the gambling regulations.