Georgia Tightens Gambling Business Restrictions

Georgian lawmakers, with 82 in favor and one against, voted in the third hearing today, to tighten laws on gambling.

The new bill increases the legal age for gambling to 25, with the exception of foreigners and stateless persons who are permitted to play if they are 18.

The bill mandates the Revenue Services of Georgia to manage lists of gambling-dependent persons and those barred from gambling. The list of gambling-dependent persons would include those addicted to it, who are either self-registered or blacklisted by a Court.

The list of those barred from gambling will further include civil servants and socially vulnerable persons. The government says this restriction would apply to approximately one million citizens.

The gambling sector will also see 65-70% increased taxes, in total, starting from January 1, 2022.

Also, gambling businesses will be prohibited from placing ads on television, on Georgian websites, and outdoors, starting from March 1, 2022. The initial draft envisaged enforcing the ban starting January 1, but the date was then changed.

The companies involved in gambling will only be allowed to sign sponsorship contracts, mainly in sports.

The government first unveiled its plans to tighten gambling regulations at a session on November 22. Although the government is entitled by law to author and table legislation, the amendments, were penned and initiated on December 8 by seven Georgian Dream MPs – Davit Songhulashvili, Levan Mgaloblishvili, Gela Samkharauli, Gocha Enukidze, Bezhan Tsakadze, Elguja Gotsiridze, Irakli (Dachi) Beraia.

Concerns over advertisement ban

Media Advocacy Coalition, uniting more than a dozen local civil society organizations, on December 14 slammed the Parliament’s decision to expedite the adoption of the bill. 

The watchdogs highlighted that the amendments were drafted without consultations with other state bodies, the third sector, international organizations and key stakeholders. “The bill does not include relevant findings and assessments from field experts, including the Communications Commission,” the Coalition stressed.

The watchdogs found it alarming the ban on media advertisements was being introduced without “proper assessment” of its impact on media outlets’ revenues. They warned that “there is a risk that the adoption of the bill will significantly hurt the broadcasters’ financial independence.”

Government-critical TV Channels have been particularly concerned. Representatives from Formula TV and Mtavari Arkhi disclosed to RFE/RL Georgia that the revenues from ads and sponsorships from the gambling industry make up about 20-25% of the commercial incomes of their channels.

Speaking at a committee discussion of the bill between lawmakers, gambling company representatives and media managers, Nika Gvaramia of Mtavari Arkhi underlined that “almost all entertainment shows” on the network were sponsored by betting companies. 

According to him, the new regulations would not only slash revenues for the company but also entail the “loss of new income opportunities.” Gvaramia warned the new regulations would have a “domino effect,” resulting in TV networks closing down one by one and asked for an interim period till September next year to help them adjust to new rules.

Director of TV Pirveli Vato Tsereteli concurred, calling the expedited discussions on the bill a “booting” of media in general, and of the government-critical media in particular.

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