The Georgian government has submitted a draft law to Parliament that provides significantly higher fines for violations of licensing conditions in the gambling sector. The changes will apply to both land-based casinos and slot clubs, as well as online gambling operators. The rules in question include restrictions on allowing persons under 25 to gamble, bans on participation by public officials and individuals on restricted lists, as well as requirements related to customer identification, record-keeping, and data reporting.
According to the explanatory note prepared by the Ministry of Finance, the current sanctions “do not perform a real deterrent function.” In many cases, it is economically more beneficial for license holders to violate the rules and pay the fine rather than fully comply with regulatory requirements. The ministry also notes that violations of licensing conditions have become more frequent, while budget revenues from fines have been steadily increasing year by year.
Under the proposed amendments, fines will be significantly increased across all segments of the industry. For casino operators, the penalty will rise from 7,000 GEL to 20,000 GEL. For slot machine halls, the fine will increase from 1,000 GEL to 10,000 GEL. For operators of gambling clubs and providers of gambling or betting services, the penalty will also be set at 10,000 GEL instead of the current 2,000 GEL.
In addition, operators of online casino games, slot machines, and betting platforms using system-electronic formats will also face increased fines, rising from 7,000 GEL to 20,000 GEL. The ministry explains that these new amounts are being aligned with existing penalties for violations related to the late payment of licensing fees.
The government states that the goal of the reform is to strengthen enforcement mechanisms, improve regulatory compliance, and better protect consumers, particularly vulnerable groups.
