Georgia is laying out an ambitious play to attract foreign-facing online gambling operators with a radically simplified licensing regime, signalling a deliberate pivot toward positioning itself as a competitive alternative to established European hubs like Malta and Gibraltar.

Under the proposed framework, international operators targeting customers outside Georgia would pay just GEL 100,000 for a licence and face a 5% tax on gross gaming revenue. Local players would be completely blocked from accessing these platforms, creating a ringfenced market designed purely for overseas traffic.

The Domestic Gap

The contrast with Georgia’s domestic licensing terms reveals the strategy in sharp relief. Operators serving Georgian residents currently pay GEL 5 million upfront and shoulder a 20% tax on gross gaming revenue. They also navigate stricter responsible gambling rules, including a minimum player age of 25.

This two-tier approach effectively signals that Georgia is willing to undercut its own domestic market to win international business. The financial incentives are substantial enough to merit serious consideration from operators seeking alternative jurisdictions to Malta, Gibraltar, and other saturated markets.

A Market Already Growing

Georgia’s gambling sector is already delivering meaningful returns. According to analytics firm Blask, the industry contributed approximately $660 million to state finances in 2025, representing roughly 25% year-on-year growth. Yet policymakers clearly see unrealised potential.

Here’s the clever bit: by focusing on foreign-facing operations, the government can expand tax revenue without competing directly with its own domestic operators. It’s a calculated bet that attracting international operators will prove more lucrative than squeezing higher taxes from the local market.

Learning From Estonia’s Experiment

Georgia’s approach echoes moves elsewhere in Europe, though it’s more aggressive than most. Estonia recently approved a phased reduction in gambling taxes from 6% to 4% over four years, betting that a lighter fiscal burden would spur new investment and long-term competitiveness.

Early results remain inconclusive. Local reports suggest the tax cuts haven’t yet translated into measurable revenue gains, though new licence applications are filtering through. Industry observers argue it’s too early to judge; markets need time to respond to structural changes.

Georgia, though? The country appears willing to move faster and further. By creating an entirely separate regulatory track for international operators, the government is effectively running a more radical experiment than Estonia’s gradual tax reduction.

Regulatory Tightening at Home

The foreign-facing licence proposal arrives alongside broader regulatory tightening under Prime Minister Irakli Kobakhidze. Authorities have completed an extensive review of individuals barred from gambling, resulting in over 1.57 million names added to the national exclusion registry by the end of 2025.

On the surface, this looks contradictory. Loosen rules for international operators while tightening player protections domestically? Actually, it reflects a coherent strategy. Georgia is essentially signalling: stricter oversight for local play, lighter touch for foreign-facing businesses. It’s a neat division of labour that may well prove attractive to international operators tired of increasingly prescriptive licensing regimes elsewhere.