Georgia backs gambling tournaments to attract foreign gambling tourists

Georgia's Parliament has approved legislation allowing casinos to organise international gambling tournaments, introducing a new approach to attracting overseas visitors and stimulating tourism during quieter periods of the year. The initiative combines regulatory provisions with financial incentives intended to make the country more attractive for large-scale gambling events.

The legislation passed its final reading on 28 October 2026, with 73 lawmakers voting in favour and five against. Proposed by members of the ruling Georgian Dream party, the measure was considered under an expedited parliamentary procedure. Its approval followed debate over the potential economic benefits of international tournaments and concerns about the social consequences of promoting gambling-related activities.

Supporters have presented the initiative as a tourism development measure rather than a general expansion of gambling opportunities for Georgian citizens. Critics, however, have questioned whether the anticipated economic gains justify the incentives and whether sufficient attention has been given to public health and consumer protection.

The final legislative package also introduced a stricter participation requirement. At least 80 per cent of participants must be foreign nationals for an event to qualify as an international gambling tournament, increasing the threshold from the 70 per cent proposed in the original draft.

Eligibility requirements and tax incentives

Under the approved framework, an international gambling tournament must be organised by a casino and have a prize pool guaranteed in advance by the organiser. The requirement for foreign nationals to represent at least 80 per cent of participants is intended to distinguish internationally focused events from competitions that primarily attract domestic players.

The legislation establishes financial incentives for tournaments with prize pools exceeding GEL 3 million. Casino organisers that use gaming tables exclusively for qualifying international tournaments above this threshold will be exempt from the gambling business fees normally applicable to those tables.

The change could reduce certain operating costs for casinos planning large events. It may also encourage organisers to consider Georgia as a destination for competitions that attract participants from several countries. However, the commercial impact will depend on factors such as event attendance, visitor spending and the costs associated with hosting international competitions.

The rules also address the taxation of tournament winnings. Income earned by individuals participating in international gambling tournaments will generally be subject to a 20 per cent tax. Foreign nationals competing in qualifying tournaments with prize pools exceeding GEL 3 million will be exempt from tax on their winnings under the reported provisions.

Organisers will be permitted to generate revenue from hosting these events. Tournaments may take place at casino-licensed premises or at approved venues outside those premises, potentially allowing organisers to work with a wider range of hospitality and event facilities.

The legislation establishes a GEL 50,000 fine for breaches of the permit conditions governing international gambling tournaments. The applicable requirements will therefore remain important for operators seeking to benefit from the new framework.

Religious and political concerns over the reform

The legislation has faced criticism from the Georgian Orthodox Church Patriarchate and the Public Defender of Georgia. Their concerns centre on the speed of the legislative process and the need to consider the possible effects of gambling-related events beyond their potential contribution to tourism.

Ahead of the final vote, the Public Defender called on Parliament not to continue the expedited adoption process without a more comprehensive assessment of human rights and social risks. The office highlighted the importance of considering potential effects on mental health, minors, household finances and family wellbeing.

The Public Defender also referred to the position of the World Health Organization, which recognises gambling-related harm as a public health concern. This perspective places the debate within a wider policy question: whether the economic benefits associated with gambling tourism can be pursued alongside effective safeguards against gambling-related harm.

The Patriarchate has also indicated that it intends to discuss the legislation before presenting a unified position. Metropolitan Anton of Vani and Baghdati told local media: “We will discuss it and express our opinion. To tell you the truth, many things are unclear, but maybe they will explain it to us.”

Archpriest Andria Jaghmaidze, head of the Patriarchate's Public Relations Service, also expressed surprise at the initiative. The Church had played a significant role in discussions that began in 2017 concerning the development of gambling regulations, making the introduction of the new proposal without prior consultation a point of concern for its representatives.

Political objections emerged during the parliamentary debate as well. The For Georgia faction opposed the legislation, while members of People’s Power questioned why the bill had been fast-tracked despite its potential implications for society.

Eka Sepashvili raised concerns about the possible normalisation of gambling through the promotion of major events. During the second reading, she warned that “the draft law may lead to unwanted popularisation of these games, which is an important issue for society”.

Giorgi Sharashidze of For Georgia also challenged the government's tourism rationale, arguing that the proposed approach could encourage greater reliance on gambling as an economic development tool. These objections reflect a wider disagreement over how Georgia should balance tourism ambitions with concerns about the social costs of gambling.

Government supporters point to tourism potential

Supporters of the legislation argue that international gambling tournaments can operate as organised visitor attractions, generating demand for accommodation, restaurants, transport and other services. They also believe that events scheduled during quieter tourism periods could help businesses maintain activity outside peak travel seasons.

Shota Berekashvili, chair of Parliament's Economic Policy Committee and one of the bill's supporters, defended the initiative by comparing tournaments with international sporting competitions.

“These tournaments are, in a sense, similar to sporting competitions. Such tournaments are held in many European countries and their main target is to develop the tourism industry,” he said. “Participants gather together and there can be thousands of them. These events are organised particularly during the off-season, when economic activity in the tourism sector is low, helping generate additional economic activity. This is not gambling in the direct sense of the word.”

The argument is based on the expectation that international participants will spend money beyond the tournament itself. Hotels, event venues and local service providers could benefit from additional demand, particularly in destinations seeking to attract visitors throughout the year.

Nevertheless, these potential benefits remain dependent on how the new framework is implemented. The legislation's approval does not, by itself, establish how many tournaments will be held, how much additional spending they will generate or whether their benefits will be distributed across different regions.

A separate international iGaming framework

The tournament legislation comes as Georgia develops its wider international gambling sector. A separate international iGaming licensing framework was introduced in 2026 for online gambling activities aimed at overseas markets. The framework provides for five-year licences covering eligible activities such as online casino games, slots and sports betting, with Georgian citizens excluded from participation under the international regime.

Random Systems Georgia, a government-selected company involved in monitoring and regulatory compliance within the gambling industry, also has a role in the country's wider oversight arrangements. Its work should be distinguished from the specific rules governing casino-hosted international tournaments.

Although the two initiatives relate to Georgia's broader ambition to attract international gambling business, they address different activities. The online licensing framework concerns eligible digital gambling operations, while the new tournament provisions establish conditions for qualifying casino events.

Conclusion

Georgia's approval of international gambling tournaments marks a significant policy decision, combining tourism ambitions with financial incentives for qualifying casino events. The requirement for at least 80 per cent foreign participation, the exemption from certain gaming-table fees and the tax treatment of qualifying winnings create a framework designed to attract internationally focused competitions.

Whether the initiative delivers meaningful economic benefits will depend on its practical implementation. Tournament attendance, visitor spending, hotel occupancy and activity during traditionally quieter travel periods will be important indicators of its effectiveness. Transparent reporting on these outcomes could help policymakers determine whether the incentives are producing the intended results.

At the same time, the criticism raised by religious representatives, opposition lawmakers and the Public Defender highlights issues that extend beyond tourism revenue. Effective oversight, compliance with permit conditions and appropriate consideration of gambling-related harm will remain important as the framework develops.

Ultimately, Georgia's challenge is to demonstrate that international gambling tournaments can contribute to tourism without overlooking wider public interests. The long-term value of the policy will depend not only on its ability to attract overseas visitors but also on whether economic objectives are pursued with clear rules, meaningful safeguards and careful evaluation of the social consequences.

FAQs

What has Georgia approved regarding gambling tournaments?
Georgia's Parliament has approved legislation allowing casinos to organise international gambling tournaments under specified participation, licensing and financial conditions.

When did Parliament approve the legislation?
The legislation passed its final reading on 28 October 2026, with 73 votes in favour and five against.

What percentage of tournament participants must be foreign nationals?
At least 80 per cent of participants must be foreign nationals for an event to qualify as an international gambling tournament.

What prize pool qualifies for the main tax incentives?
The relevant threshold is a prize pool exceeding GEL 3 million.

Which casino operators can qualify for the gaming-table fee exemption?
Organisers using gaming tables exclusively for qualifying international tournaments with prize pools above GEL 3 million can qualify for an exemption from the applicable gambling business fees on those tables.

How are tournament winnings taxed?
Winnings are generally subject to a 20 per cent tax. Foreign nationals participating in qualifying tournaments with prize pools exceeding GEL 3 million are exempt from tax on their winnings under the reported provisions.

Where can international gambling tournaments take place?
Qualifying events may be organised at casino-licensed premises or at approved venues outside those premises.

What penalty applies to breaches of tournament permit conditions?
The legislation establishes a GEL 50,000 fine for breaches of the applicable permit conditions.

Why has the legislation attracted criticism?
Critics have raised concerns about gambling-related harm, the potential normalisation of gambling and the expedited parliamentary process, including the absence of a comprehensive assessment of social risks.

What is the main objective of the new framework?
Supporters say it is intended to attract foreign visitors, encourage spending on tourism-related services and generate economic activity during periods of lower seasonal demand.