Former Deputy Economy Minister Nikoloz Alavidze says amendments to gambling legislation introduced without proper analysis, impact assessment or public explanation raise suspicions that the process may be serving specific private interests.
Speaking to TV program Business Course, Alavidze criticized the fast-tracked legislative changes granting casinos tax breaks for hosting international tournaments.
“If we put the two sides on the scales, the increased social and economic risks outweigh the benefits of these tax breaks. This industry does not deserve additional tax incentives, nor does it generate such a significant multiplier effect that it could be critical to tourism development,” Alavidze said.
He noted that although the sector’s turnover reaches GEL 88 billion, its actual contribution to the economy is limited. According to Geostat data cited by Alavidze, the industry directly employs around 13,200 people and has invested just GEL 63 million in fixed assets. Taxes mobilized from the sector total GEL 1.75 billion, less than 2% of the overall figure. However, he said, the industry itself has paid no more than GEL 300 million, with the remainder coming indirectly from taxes paid on gambling winnings by customers.
Alavidze also stressed the sensitivity of the issue, noting that gambling addiction is recognized by the World Health Organization as a serious disorder. He warned that a lack of transparency and disregard for social risks, in the absence of a well-considered long-term government strategy, pose significant risks to society.
