Published by Bookkeeping.ge — Assio Lex and Associates LLC
Updated
Amendments Impacting the Gaming Industry concerning the participation of foreign citizens in lottery games and other games of chance in Georgia
Georgia’s gaming tax rules distinguish the operator’s taxable income or profit from tax on player withdrawals. This article originally discussed changes around 2024; those dates should be read as historical context. For current accounting, operators must classify the permitted gaming activity, player category and relevant tax period before applying a rate. The same treatment cannot be assumed for lotteries, slot-machine salons, online games of chance and electronic betting.
For specified systemic-electronic games of chance and betting involving foreign citizens, the operator’s relevant taxable income or profit is subject to a 5% rate. The general rules for specified slot-machine and systemic-electronic games of chance provide a 20% operator rate. These are sector-specific tax bases and should not be presented as a flat tax on turnover or on every player’s winnings.
Player-withdrawal taxation must be assessed separately from the operator’s tax. The Code specifies a 5% rate for the relevant taxable withdrawals and excludes withdrawals by foreign citizens from systemic-electronic gambling accounts from that particular tax base. Operators need accounting records that support the applicable player category and activity.
Gaming accounting in Georgia also needs a review of applicable permit conditions, gambling-business fees, payment records, tax returns and any separate payroll or VAT obligations. The relevant licence or permit and the actual business activity should be checked together before assuming that an operator qualifies for a particular tax treatment.
By keeping abreast of these changes, businesses operating in Georgia can better navigate the evolving tax landscape and ensure compliance with the latest regulations.
Plan the gaming tax reporting workflow
Keep each licensed product and player category identifiable in the accounting records. Reconcile accepted stakes, winnings, withdrawals, fees and payment-provider movements before choosing the tax base. A report of platform sales or deposits alone may not supply the figures needed for the relevant tax return.
For a proposal, provide the permit, accounting period, platform reporting format and previous declarations. Bookkeeping.ge can review the tax classification and recurring reporting requirements before processing the monthly gaming accounts.
Records a gaming operator should prepare
For an accounting review, prepare the licence or permit details, a description of each gaming product, player-account and withdrawal reports, operator revenue calculations and prior tax submissions. Identify whether a report concerns Georgian or foreign players and reconcile the platform records to payment-provider and bank statements.
Tax treatment should be checked for the accounting period concerned. Historical operator profits and current-period activity may require different treatment, so accounting records should preserve the period and source of the relevant income rather than merging everything into a single sales total.