Historical background
The casino industry in Georgia tells the story of how a small country at the crossroads of Europe and Asia used liberal regulation to build a thriving sector. After independence from the Soviet Union in 1991, Georgia faced economic collapse, high unemployment, and declining foreign investment. In this environment, lawmakers saw gambling not just as entertainment but as a tool for economic growth. By legalizing casinos, slot halls, and betting operations, Georgia positioned itself as one of the few countries in the region with an open and welcoming approach to gambling.
The first casinos in the 1990s were modest, located mainly in Tbilisi. They quickly attracted attention because they offered an activity unavailable in nearby countries. As the years passed, Batumi emerged as a central hub, fueled by its strategic location on the Black Sea and its proximity to Turkey. Tourism and gambling developed hand in hand, and the government gradually formalized licensing rules, taxation policies, and oversight measures.
This early liberalization gave Georgia a long-term advantage. While countries like Turkey, Azerbaijan, and Armenia imposed restrictions, Georgia’s openness made it the only accessible regional destination for legal gaming. That difference remains one of the pillars of the industry today.
Legal framework
Casinos in Georgia operate under regulations set by the Ministry of Finance, with oversight provided by the Revenue Service. Every operator must obtain a license, pay taxes, and comply with anti-money laundering and responsible gambling laws. Licenses are specific: separate permissions are issued for casinos, slot halls, betting shops, and online platforms.
Casinos are allowed in designated zones such as Tbilisi and Batumi, as well as in certain resort towns. The government deliberately linked casino development to tourism, ensuring that gaming would support hospitality and infrastructure. Online casinos are also fully legal under Georgian law, provided operators maintain compliance with technical, financial, and security standards.
In recent years, lawmakers have introduced stricter measures. Citizens under 25 years old, individuals employed in public service, and those receiving government welfare are prohibited from gambling. Advertising rules have been tightened to prevent aggressive marketing, particularly to vulnerable groups. These measures demonstrate a shift toward balancing openness with social responsibility.
Casinos in Batumi
Batumi has transformed from a Soviet port city into Georgia’s casino capital. Today it is often called the “Las Vegas of the Black Sea.” Luxury hotels along the coastline feature casinos that attract thousands of tourists every year. With Turkey banning gambling entirely, Batumi draws many Turkish visitors who travel specifically for gaming. Israelis, Armenians, and Azerbaijanis also form a large part of the customer base.
Casinos in Batumi are integrated resorts, combining large gaming floors with fine dining, live music, nightclubs, and spa services. This model ensures that visitors do not just gamble but also enjoy a full hospitality experience. Major names like Casino International at Hilton Batumi and Eclipse Casino have helped build the city’s international reputation.
The growth of Batumi’s casino sector has also supported city development. New hotels, improved roads, and an expanded airport were built to accommodate rising demand. The multiplier effect of casino tourism has boosted local businesses, from restaurants to taxi services. As a result, Batumi has become not just a gambling destination but a recognized regional resort.
Casinos in Tbilisi
Tbilisi remains the second pillar of Georgia’s casino industry. The capital hosts several high-profile casinos located within luxury hotels. While the city lacks the coastal resort appeal of Batumi, it benefits from its status as the country’s political, economic, and cultural hub. Many visitors arrive through Tbilisi’s international airport, making the city a natural first stop for tourists.
Casinos in Tbilisi often emphasize exclusivity. VIP rooms, private gaming tables, and personalized services cater to high-net-worth individuals. The clientele includes both wealthy locals and international business travelers. Popular establishments such as Casino Adjara and Casino Iveria are well known for their premium atmosphere.
Unlike Batumi, which thrives on mass tourism, Tbilisi’s casino market is more stable and high-value. This dual structure — Batumi as a mass-market destination and Tbilisi as a premium hub — has allowed the industry to diversify its appeal.
Tourism connection
Tourism and gambling are deeply connected in Georgia. Casino tourism has become one of the most important drivers of international arrivals. Many visitors come specifically to gamble, while others combine gaming with cultural exploration. For tourists from Turkey and nearby regions, Georgia offers the closest legal and safe option for casino play.
The government recognizes this synergy and actively promotes Georgia as a casino tourism destination. Marketing campaigns highlight Batumi’s coastal resorts and Tbilisi’s urban nightlife, framing casinos as part of a broader travel experience. The combination of gambling, Georgian cuisine, wine tourism, and cultural heritage makes the country attractive for multi-day trips.
Tourism data confirms this link. In peak summer months, Batumi experiences significant increases in arrivals, with casinos cited as a primary motivation. Hotel occupancy rates and local business revenues reflect this seasonal influx. The government uses gambling taxes and license fees to invest in tourism infrastructure, creating a cycle where the casino industry helps finance further growth.
Economic significance
The casino industry plays a central role in Georgia’s economy. It contributes hundreds of millions of lari in taxes each year, funds that support public services and infrastructure. Casinos are among the largest employers in Batumi and Tbilisi, offering jobs in gaming operations, hospitality, marketing, IT, and security.
Foreign investment is another key contribution. Casino development has attracted capital from Turkey, Israel, and European countries. Investors fund new resorts, hotels, and entertainment complexes, bringing modern infrastructure to Georgia’s cities. This inflow of investment helps diversify the economy and reduces dependence on traditional sectors.
The indirect benefits are equally important. Casinos attract high-spending tourists, who in turn support airlines, restaurants, cultural attractions, and retail businesses. According to industry studies, every dollar spent in casinos generates additional spending in related sectors. This multiplier effect underscores why casinos are seen as economic engines, not just entertainment venues.
Regulation and social responsibility
Georgia’s open policy toward casinos has generated growth but also sparked concerns about problem gambling. In response, the government has tightened regulation. The restriction on citizens under 25 is stricter than in most jurisdictions, reflecting Georgia’s proactive stance on protecting young people. Public employees and individuals on welfare are excluded to prevent misuse of public funds.
Operators are obliged to provide responsible gambling tools. These include self-exclusion systems, voluntary deposit limits, and mandatory warnings about risks. Online casinos must verify player identities, implement anti-money laundering protocols, and maintain secure platforms. Audits and inspections are carried out by the Revenue Service to ensure compliance.
Public campaigns also raise awareness of gambling addiction. NGOs collaborate with the government to provide support programs and counseling services. These steps illustrate Georgia’s effort to balance the economic benefits of casinos with the need to mitigate social risks.
Taxation policies
Taxation is central to Georgia’s casino regulation. Land-based casinos pay annual license fees that vary based on the number of tables and slot machines they operate. They also contribute through ongoing taxes on gross gaming revenue. Online operators pay taxes on net revenue, ensuring digital platforms contribute on par with physical casinos.
Reforms in 2021 raised tax obligations significantly. The government aimed to capture more revenue from a rapidly expanding sector while discouraging excessive growth. Industry representatives voiced concerns about reduced margins, particularly for smaller operators, but the reforms were implemented successfully.
Despite higher taxes, Georgia remains competitive. Neighboring countries either ban casinos outright or impose less transparent systems. Georgia’s predictable framework continues to attract foreign investors, balancing fiscal goals with investor confidence.
Regional significance
The casino industry in Georgia has regional importance. With Turkey, Azerbaijan, and much of the Middle East banning gambling, Georgia stands out as one of the few legal destinations in the area. This unique position allows it to capture tourism revenue that would otherwise flow to underground or offshore markets.
Batumi’s casinos are especially popular among Turkish visitors, who account for a significant share of arrivals. Tbilisi attracts Israelis and Eastern Europeans, while Armenians and Azerbaijanis also travel for gaming. This cross-border demand gives Georgia a competitive edge in the regional tourism market.
International investors recognize Georgia’s strategic location and legal framework. The country has attracted interest from casino groups seeking a base in the Caucasus and Eastern Europe. Georgia’s transparent licensing process is seen as more investor-friendly than many other regional markets.
Online casinos
Online casinos are becoming increasingly important in Georgia. Licensed platforms offer slots, poker, table games, and live dealer experiences, accessible through mobile devices and computers. The sector grew rapidly during the COVID-19 pandemic, when access to land-based casinos was limited.
Regulation requires online operators to implement advanced security, identity verification, and responsible gambling tools. Licensed platforms often partner with international software providers, ensuring high-quality games and fairness. Online casinos also broaden the reach of the industry beyond major cities, making gambling accessible nationwide.
Taxation of online casinos has increased in recent years, with the government viewing digital platforms as a major revenue source. Compliance monitoring ensures that licensed operators contribute fully to the budget. The online sector’s growth suggests it will continue to play an increasingly central role in Georgia’s casino industry.
Challenges for the industry
Despite its strengths, Georgia’s casino industry faces challenges. Social concerns about addiction remain prominent, and public debate continues about how to protect vulnerable populations. Stricter regulation may reduce revenue growth, but failure to act could harm the country’s reputation.
Competition from emerging regional markets is another factor. Armenia and Ukraine have begun expanding their gambling industries, offering alternative destinations for investors and tourists. Georgia must maintain its advantages through stability, transparency, and quality services.
Currency fluctuations and economic volatility also pose risks. Since many tourists come from Turkey, changes in the Turkish lira’s value directly affect spending patterns. To mitigate this, Georgia must diversify its customer base by attracting visitors from new markets.
Future outlook
The future of the casino industry in Georgia will be shaped by innovation, regulation, and international competition. Batumi is likely to continue expanding as a mass-market destination, supported by new resorts and infrastructure. Tbilisi will remain a premium hub, focusing on VIP services and high-value clients.
Online casinos will take on an even greater role, driven by mobile technology and consumer demand for convenience. Cryptocurrency payments, gamification, and esports betting may soon become standard features in the Georgian market. Regulatory refinements are expected, including stricter advertising standards and enhanced responsible gambling requirements.
For the government, the challenge will be maintaining balance: encouraging investment and tourism while protecting consumers and collecting fair tax revenues. If managed effectively, Georgia can maintain its position as one of the most dynamic and attractive casino markets in the region.