Historical background
The gambling industry in Georgia reflects the country’s unique position at the cultural and economic crossroads of Europe and Asia. Gambling as entertainment was never foreign to Georgian society, but the modern regulated industry only began to take shape in the early 1990s after independence from the Soviet Union. At that time, the economy was struggling, and policymakers recognized gambling as a potential tool for attracting foreign visitors, creating jobs, and generating tax revenue.
Early gambling houses and slot halls emerged in Tbilisi and Batumi. Initially, regulation was minimal, and operations were often fragmented. Over time, the government introduced licensing requirements and oversight mechanisms, transforming gambling from a loosely structured business into an organized industry. This liberal approach stood out in the region, as neighboring countries like Turkey and Azerbaijan imposed strict bans on gambling. As a result, Georgia became a natural destination for tourists seeking legal entertainment, laying the foundation for the industry’s current scale.
Legal framework
The Georgian gambling industry operates within a structured legal environment overseen by the Revenue Service of the Ministry of Finance. Laws clearly define permitted activities, licensing processes, taxation, and compliance standards. Unlike many jurisdictions where gambling is restricted to certain categories, Georgia permits a wide range of activities — casinos, slot halls, sports betting, and online gambling.
Each sector requires specific licenses. Land-based casinos are authorized only in designated areas, while betting shops and slot halls have separate regulatory categories. Online gambling is licensed under its own framework, allowing operators to run digital platforms that must comply with financial and technical regulations. The government emphasizes transparency: operators must maintain proper accounting, report revenues, and implement anti-money laundering safeguards.
Recent years have brought additional restrictions aimed at addressing social concerns. Advertising rules have been tightened, and access has been restricted for certain categories of citizens, including those under 25 years old and people receiving government assistance. These measures demonstrate the government’s attempt to balance growth with responsibility.
Casinos in Georgia
Casinos represent the most visible and internationally recognized part of Georgia’s gambling market. The resort city of Batumi on the Black Sea coast has positioned itself as a casino hub. Often referred to as the “Las Vegas of the Caucasus,” Batumi hosts luxury hotels that integrate large-scale casinos. Tourists from Turkey, Israel, and other countries flock to Batumi specifically for gaming. Since gambling is illegal in Turkey, visitors frequently cross the border to enjoy legal casinos in Georgia.
Tbilisi, the capital, also maintains a thriving casino scene, though with a slightly different focus. Casinos in Tbilisi cater to both international tourists and affluent locals. Venues often combine gaming with upscale dining, live shows, and luxury hotel accommodation. Resorts like Casino Adjara and Casino Iveria are well known in the regional market.
The government supports casino development by linking it with tourism and hospitality. Foreign investors, particularly from Turkey and Israel, have been attracted by favorable conditions. This strategy has turned casinos into catalysts for hotel construction, infrastructure upgrades, and broader tourism growth.
Sports betting sector
Sports betting is one of the fastest-growing areas of Georgia’s gambling industry. Retail betting shops remain common in major cities, but the real growth has been in online platforms. Football dominates betting markets, reflecting its cultural significance in Georgia and neighboring countries. Basketball, tennis, and combat sports also draw substantial wagering.
Live betting — placing wagers on events as they unfold — has become particularly popular. Advances in mobile technology allow Georgian operators to offer real-time markets and instant settlement. Licensed operators are required to maintain transparency and ensure fair odds, and their activities are closely monitored by regulators.
Sports betting also plays a social role. Shops and lounges often function as gathering points for fans, blending the atmosphere of sports viewing with gambling activity. While concerns about addiction exist, the sector’s popularity shows no signs of slowing.
Online gambling growth
Online gambling has transformed Georgia’s gaming landscape. Licensed operators run online casinos, poker rooms, and sports betting platforms, accessible both locally and for international players in certain markets. The pandemic accelerated this shift, as many players turned to digital platforms when travel and entertainment options were restricted.
Operators invest in advanced technologies, including secure payment systems, mobile apps, and international partnerships with leading software providers. Popular games include slots, live dealer blackjack, poker, and roulette. Online platforms extend beyond traditional gambling hubs like Batumi, making gaming accessible across Georgia, including rural areas.
For regulators, online gambling presents both opportunities and challenges. It broadens access and generates tax revenue but also raises concerns about underage access and problem gambling. As a result, the government has introduced stronger ID verification processes and monitoring systems for online platforms.
Economic impact
The gambling industry is a major contributor to Georgia’s economy. According to official data, it accounts for hundreds of millions of lari annually in tax revenue. This money supports state programs, infrastructure, and social initiatives.
The sector also creates significant employment. Casinos in Batumi and Tbilisi employ thousands of workers in gaming, hospitality, and security. Betting shops and online operators contribute jobs in IT, marketing, and customer service. Beyond direct employment, the industry generates secondary benefits for hotels, restaurants, airlines, and local tourism services.
Tourism is tightly connected to gambling revenues. Many visitors from countries where gambling is prohibited — particularly Turkey, Armenia, and Azerbaijan — travel specifically to enjoy Georgian casinos. This inflow of tourists boosts spending on accommodations, dining, and cultural attractions. Gambling-driven tourism has positioned Batumi as one of the region’s fastest-growing resort destinations.
Regulation and responsible gambling
Georgia’s open approach to gambling has fueled rapid growth, but it has also raised social concerns. To address these issues, the government has tightened regulations in recent years. New laws restrict advertising, increase taxes, and limit who can participate. Citizens under 25, individuals receiving state welfare, and public employees are prohibited from gambling.
Operators are required to implement responsible gambling measures. Online platforms must offer deposit and loss limits, self-exclusion options, and reminders about time spent playing. Casinos are obligated to monitor suspicious activity and train staff to identify signs of addiction.
The government has also launched public awareness campaigns highlighting the risks of excessive gambling. These initiatives aim to balance the economic benefits of the industry with social responsibility, ensuring that growth does not come at the expense of vulnerable populations.
Taxation policy
Taxation plays a central role in Georgia’s gambling regulation. Different rates apply to casinos, slot halls, betting shops, and online operators. Land-based casinos are taxed on the number of tables and machines, while online operators pay taxes on gross revenue.
In 2021, the government introduced reforms that increased tax obligations. The goal was to raise budget contributions while curbing the industry’s rapid expansion. Some operators expressed concerns about reduced profitability, but the reforms have been largely implemented without driving investors away.
Taxation remains a balancing act: keeping the industry attractive for investors while ensuring the state secures fair revenue. Compared to neighboring countries, Georgia’s system is still considered competitive, which helps maintain its appeal as a regional hub.
Regional significance
Georgia’s gambling industry is significant not only domestically but regionally. The country has become a magnet for tourists from nations with strict gambling bans. Batumi benefits most from this cross-border demand due to its proximity to Turkey, attracting thousands of visitors each year.
This regional role strengthens Georgia’s economic diversification. Beyond tourism, it has created opportunities for international cooperation. Investors from Israel, Turkey, and Europe have poured money into casino resorts and online platforms. Georgia’s relatively transparent licensing system compared to regional neighbors has boosted its credibility.
At the same time, competition is emerging. Armenia and Ukraine are also developing regulated gambling markets, creating pressure on Georgia to maintain its attractiveness through stable policies and responsible regulation.
Future outlook
The future of Georgia’s gambling industry will be shaped by technology, regulation, and international competition. Online gambling is expected to grow even faster, driven by mobile platforms and digital innovation. Land-based casinos will remain important for tourism, particularly in Batumi and Tbilisi, but online will increasingly dominate revenue.
Regulation will likely continue to tighten, with stricter advertising standards and expanded responsible gambling measures. Tax policies may evolve further as the government seeks to balance fiscal needs with investor confidence.
Global trends such as cryptocurrency payments, gamified experiences, and esports betting are likely to influence the Georgian market. Operators that embrace innovation while staying compliant will gain a competitive edge. For the government, the challenge will be to maintain Georgia’s position as a regional hub while addressing social risks and keeping pace with global industry standards.