Georgia Plans New Low-Tax License for Foreign-Only Online Gambling Operators

The world of online gambling is constantly evolving. This time, our attention turns to Georgia. Plans are underway there for a very specific type of license. A license intended only for foreign online gambling providers. The Georgian government announced this.

What happened

Georgia has submitted a draft law. This would create a separate license for online gambling operators. The novelty: This license would be exclusively for "Foreign-Only" operators. This means companies that offer their services only to players outside Georgia. The core point is a significantly reduced tax burden. Local players would be excluded from these platforms. A truly interesting move by the Georgian parliament, I think. It's an attempt to attract more foreign investment without directly affecting the domestic market.

The details are still being worked out. But the main idea is clear. Georgia wants to become an attractive location for international gambling companies. Without endangering its own population. This is an important distinction from most other jurisdictions that offer licenses. Many countries focus on protecting their own citizens through strict regulation. Georgia seems to be taking a different approach here. They want to profit from the revenues without bearing the risk in the domestic market.

Background

Georgia is not new to the gambling sector. The country already has a thriving gambling industry. Casinos, in particular, are popular. However, there have been recurrent discussions in recent years. These concerned youth protection and addiction prevention. This new type of license could be a response to that. They want to utilize the benefits of the gambling industry. At the same time, the impact on Georgian citizens is to be minimized. This is a fine line. The government seems to be taking a pragmatic approach here.

Other countries also struggle with regulation. Germany, for example, tried to create order with the Gambling State Treaty 2021. Many countries like Malta, Gibraltar, or Curaçao are known for their international licenses. They attract many operators. Georgia could create a new niche market here. This could be particularly attractive for companies specializing in certain regions. Or for those annoyed by the high tax burdens in established markets. We will closely observe how this develops.

Why it matters for German players

For German players, these Georgian plans initially change nothing. GGL-licensed providers like Jackpotpiraten or Merkur-Slots remain the first choice. Players in Germany should always make sure to only play with providers holding a German license. These are subject to strict requirements. Player protection is guaranteed here. Georgian licenses are irrelevant for German players. This is due to our national Gambling State Treaty. This treaty only permits certain licenses for offering online gambling in Germany. A foreign license that only targets non-Georgians has no validity here. German players must continue to be vigilant.

Here in the Lisa Lustich editorial office, we always emphasize this. Only providers with a license from the Joint Gambling Authority of the Federal States (GGL) are legal in Germany. If you play with providers without this license, you are operating in a grey area. This can lead to financial disadvantages in an emergency. Or you might suddenly be without help if problems arise. Safety first, especially in online gambling.

What it means for GGL-licensed casinos

For GGL-licensed casinos like CrazyBuzzer or Löwen Play, nothing directly changes. They operate under the German license. This is tailored to the German market. They have clear rules. The Georgian model is not relevant to them. However, international competition could increase. This could have long-term effects. For example, on the availability of software providers. Or on general pricing in the B2B sector. It's a global business. New licenses always somehow influence the overall market. Indirectly, German providers could still feel something.

I see a trend here. Countries are trying to find new ways to partake in the online gambling pie. Without exposing their own citizens to the risks. This is a difficult undertaking. German regulation is very clearly positioned in this regard. Player protection is paramount. This distinguishes our system from many others. I am curious whether the Georgian model will establish itself. Or whether it will lead to unexpected problems. We will stay tuned.