The Georgian Gambling Association Warns that Illegal Operators Steal $742 Million Every Year
According to the Georgian Gambling Association (GGA), unlicensed businesses make over $742 million (GEL 2 billion) annually. It cautions that projected hikes in fines for licensed operators would be ill-targeted and would put more pressure on regulated companies rather than addressing illegal behaviour.
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Estimate of Illegal Gambling in Georgia
The Gambling Association has issued a warning, stating that unlicensed operators are making over $742 million (GEL 2 billion) a year and that a sizable portion of that money is leaving the regulated industry.
The industry group claims that when tax increases were implemented in 2021, the growth of illegal gaming in Georgia accelerated. This, in its opinion, made things more challenging for licensed companies while creating space for unregulated and offshore platforms to expand.
As the industry reacts to suggested increases in fines for licensed operators, the warning is issued. The group argues that stricter punishments for enterprises already subject to oversight would put further pressure on companies operating within the law rather than addressing the primary cause of market non-compliance. However, according to reports, Georgian authorities have adopted a different stance and do not believe that the scope of criminal activity is as great as the sector asserts.
Criminal penalties
Fines for casino operators will rise from roughly $2,600 (GEL 7,000) to $7,400 (GEL 20,000) under the proposed modifications.
Penalties for gambling club license holders and operators of gambling and prize games would increase from approximately $740 (GEL 2,000) to $3,700 (GEL 10,000), while those for slot machine salon operators would go from about $370 (GEL 1,000) to $3,700 (GEL 10,000).
Operators that provide casino, slot machine, and totalizer products in electronic or system-based formats would likewise be subject to the same higher level intended for casinos.
Because these restrictions concentrate on organisations that are already licensed and visible to authorities, the GGA has claimed that they are poorly targeted.
Additionally, it states that a large number of licensing violations reported in the legal market are associated with technical problems rather than deliberate violations, indicating that more fines would not always result in better enforcement outcomes if the underlying compliance failures are administrative rather than intentional.
Industry Demands a Coordinated Compliance Strategy
Giorgi Mamulaishvili, the head of the GGA, has stated that licensed businesses, which are subject to regulatory restrictions and compliance standards, are not the main source of worries over underage gaming. In order to more successfully detect and destroy unregulated platforms, the group is advocating for increased cooperation between the government and the legal sector.
According to the group, the industry has consistently offered to assist the government by providing resources, operational know-how, and market knowledge targeted at curbing illicit supply. In contrast, the Ministry of Finance claims that enforcement action against illegal activity is underway and argues that unlicensed gaming is not as common as the group portrays.
This gap in evaluation highlights a larger policy discussion over whether Georgia’s next regulatory move should focus more on tougher penalties within the licensed market or more forceful action against unlicensed and offshore companies.
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Source: gga.org.ge
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