Georgia to introduce license system for foreign operators

Georgia is moving to formalize its regulatory approach to online gambling by introducing a dedicated licensing system for foreign operators who serve only international players, according to draft legislation now under expedited parliamentary consideration. The proposal would amend existing gambling law and establish a preferential tax rate of 5% on gross gaming revenue for qualifying foreign operators, a significantly lower burden than many competing jurisdictions offer.

The initiative reflects Georgia's strategic positioning as an emerging iGaming hub in the Caucasus region. By creating a streamlined licensing pathway with attractive tax terms, the country aims to attract operators seeking alternatives to saturated Western European markets or those facing regulatory pressures elsewhere. The accelerated legislative timeline suggests government commitment to moving quickly and capturing market share before competitors introduce similar frameworks.

The distinction between foreign-facing and domestic-facing operations is notable. By restricting the reduced-tax licensing to operators serving only non-Georgian players, the legislation appears designed to avoid cannibalizing domestic tax revenue while still attracting international operators to establish presence in the country. This bifurcated approach is common among emerging iGaming jurisdictions seeking to balance foreign investment with domestic market protection.

For operators, Georgia's proposal presents an attractive entry point into a relatively underserved region, particularly for those seeking geographic diversification or escape from stricter European regimes. However, the accelerated parliamentary process and limited details available suggest operators should monitor the legislation's final form closely, as amendments during passage could alter tax rates, licensing requirements, or operational restrictions. The success of this framework will likely depend on Georgia's ability to maintain regulatory stability and enforce licensing conditions credibly, factors that will influence whether the jurisdiction becomes a sustainable long-term hub or merely a temporary arbitrage opportunity.