Georgia Bets on Foreign Operators as It Tries to Break Into Europe’s iGaming Elite

Georgia is preparing a significant shift in its gambling strategy, offering international operators a far cheaper route into the market than the one currently available to companies serving local players.

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Under proposed reforms, foreign-facing online gambling businesses would be able to obtain licences specifically designed for operators targeting customers outside Georgia. Local residents would be blocked from accessing those platforms, creating a separate market aimed entirely at international traffic.

The financial terms stand out. Operators seeking licences for online casinos, slots, or sports betting would pay GEL 100,000 and face a 5% tax on gross gaming revenue.

For companies familiar with Georgia’s existing framework, the contrast is striking.

Online gambling brands that target Georgian players currently face a licensing bill of GEL 5 million and a 20% tax on gross gaming revenue. Domestic operators also operate under tighter social responsibility rules, including a minimum gambling age of 25.

The proposal signals a two-track regulatory approach. One set of rules would continue to govern gambling activity inside Georgia, while a second, considerably lighter framework would be created for businesses focused exclusively on overseas customers.

Looking Beyond the Domestic Market

The gambling industry has already become a meaningful source of revenue for the Georgian state. Data cited by industry analytics firm Blask suggests the sector contributed roughly $660 million to public finances during 2025, a year-on-year increase of around 25%.

Yet policymakers appear to believe the market still has room to grow.

Rather than relying solely on domestic demand, the government is increasingly looking at gambling as a tool for attracting foreign investment and international operators. The latest licensing proposal fits neatly into that broader economic objective.

The initiative also arrives during a period of wider regulatory change under Prime Minister Irakli Kobakhidze.

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Over the past year, authorities have carried out an extensive review of individuals barred from gambling activities. The effort formed part of a broader attempt to tighten oversight of the industry while addressing concerns around player protection.

By the end of 2025, Georgia’s Revenue Service reported that more than 1.57 million individuals had been entered into the national exclusion registry.

Competition for the Next iGaming Hub

Georgia is not alone in trying to position itself as an alternative to established gambling centres such as Malta and Gibraltar.

Across Europe, governments are increasingly weighing whether lower taxes and more competitive licensing structures can attract operators, technology providers, and investment.

One of the clearest examples is Estonia, where lawmakers approved a gradual reduction in gambling taxes from 6% to 4% over a four-year period. The expectation was that a lighter tax burden would encourage new entrants and strengthen the sector’s long-term competitiveness.

So far, the results remain uncertain.

Local reports indicate that the tax cuts have yet to produce a noticeable change in government revenues. Officials have confirmed that new licence applications are beginning to arrive, but processing takes time and any economic impact is still difficult to measure.

Supporters of the reforms argue that early judgments would be premature. Their view is that markets need time to adjust before policymakers can determine whether lower taxes and easier market access genuinely deliver the promised investment.

Georgia now appears ready to test a similar theory. The difference is that its proposal goes further, creating an entirely separate framework for foreign-facing operators while maintaining much stricter conditions for businesses that serve Georgian gamblers.

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Source: igamingexpert.com