Jan24
Gaming Corps Goes Live In Georgia After Striking Deal with Ambassadoribet!
Georgia Gambling Industry Faces Tax Increase
November 8, 2023 Marija D
Georgia is about to experience a significant change in its tax structure. The Prime Minister of Georgia, Irakli Garibashvili, recently declared that the profit tax for the gambling business will be increased.
Currently standing at 10%, it will be raised to 15%. This decision has generated discussions and concerns within the gambling sector.
New Tax Rules for Withdrawals
Apart from the profit tax adjustment, another alteration concerns the withdrawal of gambling winnings. Under the forthcoming regulations, citizens who cash out their winnings will face a 5% tax rate, a significant increase from the previous 2%. The changes are set to impact players who frequently withdraw their winnings from gambling activities.
Prime Minister, Garibashvili, has stated that these changes are aimed at bolstering the country’s budget. It is estimated that these new tax rules will contribute an additional 400 million GEL (Georgian Lari) to the national budget. This revenue will be used for various public initiatives and services.
Industry Response and Implications
The gambling sector, which includes casinos, betting shops, and other gaming establishments, has expressed concerns about the increased tax burden. While these changes are expected to benefit the country’s budget, they may put pressure on businesses in the industry. Some operators could potentially face challenges in maintaining profitability, which might impact their sustainability in the long run.
As Georgia proceeds with these tax changes, the gambling industry within the country will need to adapt to the new landscape. Industry players are likely to reassess their strategies and potentially adjust their offerings to cope with the increased tax rates and the implications on player behavior. How the industry responds and the extent to which players continue to engage in gambling activities will become clearer as these tax adjustments come into effect.
The increased tax on profits and winnings withdrawal is expected to have varying consequences on both the government’s budget and the country’s gambling industry, and it will be essential to monitor the developments closely to determine the full impact on all stakeholders involved.
Irakli Garibashvili said at the government meeting the following: “We presented a new initiative to the parliamentary majority, according to which we should change the taxation rate of gaming business. Under the new initiative, gaming businesses will be taxed at a rate of 15% of profits, instead of the current 10%. And withdrawals from gaming businesses will be taxed at 5% instead of the current 2%. On the one hand, I want to express surprise, and on the other hand, it is very sad that the turnover of the game business is increasing. I’m really not happy because too many citizens are still involved in the gaming business. For information, I would like to tell you that in 2022, the total turnover of gaming business increased from 48 billion GEL to 52 billion GEL, which is a catastrophic indicator. So many people are still involved in the gaming business. Last year we made important changes when we banned advertising and also restricted the right to play to citizens under 25 years of age. The ban automatically affected 1 million 500 thousand citizens.”
Source:
”Georgia Increases Taxes on Gambling Business”, europeangaming.eu, November 7, 2023.
Leave a Reply
Related News
From my point of view, this may not be a bad move. Maybe it’s good for responsible gaming. I’m not sure, but probably the decision was made by an expert.