TLDR
- The Georgian Gambling Association says unlicensed gambling operators make over $742 million (GEL 2 billion) per year in the country
- Proposed fine increases would raise casino operator penalties from $2,600 to $7,400, with similar hikes across other license categories
- The GGA argues higher fines unfairly target licensed operators instead of addressing illegal and offshore platforms
- Georgian authorities disagree with the industry’s estimate and say enforcement against illegal activity is already underway
- The industry group is calling for government cooperation to shut down unregulated platforms rather than penalizing compliant businesses
The Georgian Gambling Association has raised concerns about the scale of unlicensed gambling in the country. The industry group estimates that illegal operators generate more than $742 million every year.
That figure, equivalent to roughly GEL 2 billion, represents money the GGA says is being lost from the regulated market. The association warns that much of it flows to offshore and unregulated platforms outside government oversight.
The warning comes as Georgian lawmakers consider raising fines for licensed gambling operators. The GGA says these proposed penalties would hurt companies already following the rules.
Under the proposed changes, fines for casino operators would jump from about $2,600 to $7,400. That is nearly a threefold increase.
Penalties for gambling club license holders and operators of prize games would rise from roughly $740 to $3,700. Slot machine salon operators would see fines go from about $370 to $3,700.
Proposed Fines Draw Industry Pushback
Operators offering casino, slot machine, and totalizer products in electronic or system-based formats would face the same higher penalty levels as traditional casinos.
The GGA has called these measures poorly targeted. It argues the fines focus on businesses that are already licensed and visible to regulators.
The group also says many licensing violations in the legal market stem from technical issues. These are administrative problems, not deliberate rule-breaking, according to the association.
Higher fines for such violations would not improve enforcement outcomes, the GGA argues. It says the real problem lies with operators who are completely outside the system.
The association traces the growth of illegal gambling in Georgia back to tax increases introduced in 2021. It claims those changes made it harder for licensed companies to compete.
That shift, according to the GGA, opened the door for unregulated and offshore platforms to grow. The group says the current fine proposals risk repeating that pattern.
Giorgi Mamulaishvili, the head of the GGA, has said licensed businesses are not the main source of concerns over issues like underage gambling. He pointed to unregulated operators as the bigger risk.
GGA Calls for Government Cooperation
The association is pushing for closer cooperation between the government and the legal gambling sector. It wants joint efforts to identify and shut down unregulated platforms.
The GGA says the industry has offered to share resources, operational knowledge, and market data to help combat illegal supply. It frames the issue as one that requires partnership, not punishment of compliant businesses.
However, Georgian authorities have taken a different position. The Ministry of Finance says enforcement action against illegal gambling is already taking place.
The ministry also disputes the scale of the problem as described by the industry. Officials argue that unlicensed gaming is not as widespread as the GGA claims.
That disagreement highlights an ongoing policy debate in Georgia. The question is whether regulators should focus on tougher penalties for licensed operators or direct more resources toward shutting down illegal and offshore companies.
The Ministry of Finance maintains that its current approach addresses both sides of the issue.
