The Law of Georgia On Gambling Business Fee - Invest in Georgia

Article 1. General Provisions
The Law of Georgia
On Gambling Business Fee
The present Law, in accordance with Article 94 of the Constitution of Georgia and the Law of
Georgia on the Grounds for the System of Fees sets forth the types and the rates of the fees
prescribed in conjunction with gambling business set forth under the law, rule of payment and
the timeframes thereof.
Article 2. The concept of the gambling business fee
1. Gambling business fee is a mandatory payment into the local budget which has been set
forth pursuant to the political and economic interests of the state.
2. Gambling business fee shall be paid by the entities set forth under Article 3 of this Law in
the amount and according to the rule set forth under the same Law.
Article 3. Payer of the fee
1. The payers of gambling business fee shall be the entities that carry out business activity via
casinos, games of chance and other gaming business and such activity in accordance with the
legislation of Georgia is subject to regulation through permits.
2. The payers of gambling business fees are also the entities that organize lotteries (organizers)
that carry out business activities until the winner of a tender organized by the National
Lottery Fund envisaged under the Law of Georgia on Lotteries, Games of Chance and other
Winning Games is identified.
Article 4. The objects of fees
The objects of gambling business fee shall be as follows:
a) gaming tables, machines used for games of chance and winning games;
b) cash desks of a totalizator, bingo, lotto (specially organized place where the bids are
accepted and/or the winnings are issued through a cashier and/or a special machine or other
means);
c) prize fund of promotional drawing game;
d) systemic-electronic game;
e) proceeds from the sale of lottery tickets.

Article 5. Fee rates (30.12.2008 N 969)
The gambling business fee rates are differentiated according to the type of gambling business
and shall be set forth:
a) for each gambling table in a casino– GEL 15,000- GEL 30,000 (inclusive) per quarter;
b) for each gambling machine – from GEL 1,500- GEL 3,000 (inclusive) a quarter (12.10.2010 N
3661)
c) for each cash desk of a totalizator, bingo, lotto -- from GEL 3,750- GEL 7,500 inclusive per
quarter (12.10.2010 N 3661).
d) for each promotional drawing game – 10% of prize fund;
e) for a systemic-electronic game -- from GEL 12,000- 90,000 inclusive a quarter;
f) for organizing lotteries – not more than 20% of the proceeds from the sale of the tickets.
Article 6. Accounting for the fees and the rule of payment
1. An organizer of a promotional drawing game shall be obligated to submit on a quarterly
basis to a local taxation authority the declaration form approved by the Minister of Finance of
Georgia and pay the fee not later than the 15 th day of the month following the reporting
quarter.
2. The amount of quarterly fee of the organizer of the promotional drawing game shall be
determined according to the prize fund drawn in a reporting quarter. Further, the amount of
the fee in the final reporting quarter of the promotional drawing game shall be set at the
residual value (amount) of prize fund.
3. An organizer of a systemic-electronic gaming shall be obligated to file on a quarterly basis to
a local tax authority the declaration form approved by the Minister of Finance of Georgia and
pay the fee not later than the 15 th day of the month following the reporting quarter.
4. When setting up casino gambling tables, cash desks for gaming machines and totalizators,
bingo, and lotto the organizers of the games shall pay the gambling business fee at the time of
the purchasing of the marks of the payment of the fee.
5. For the purposes of this Law the mark of the payment of the fee implies the marks to be
affixed to the gambling tables and machines, cash desks of totalizators, bingo and lotto when
organizing the games, that certifies the payment of the fee and the right of the organizer of the
games to install gambling tables and machines and the setting up of totalizator, bingo, and
lotto cash desks at the places of organizing games.
6. The mark of payment of a fee shall contain:

a) a unique code;
b) the period of levy of the fee;
c) a different color according to the type of gambling business.
7. The sketch of the marks of the payment of gambling business fee is approved by the
Minister of Finance of Georgia.
8. An organizer of games shall purchase the mark of payment of the fee according to the fee
rate in force on the territory where the taxable object is actually located, at a relevant taxation
inspectorate, before the commencement of the reporting quarter.
9. The mark of payment of the fee shall be registered at a relevant tax inspectorate, in the
name of the organizer of games.
10. The organizers of games shall affix the marks of payment of fee to the tables and machines,
as well as at prominent places of cash desks of a totalizator, bingo, lotto, on the first business
day of the reporting quarter and remove on the final business day of each reporting quarter.
11. The rules for purchasing the marks of payment of fees, registration and affixing thereof,
replacement of the damaged marks, as well as the rules for sealing inactive taxable objects shall
be set forth by the Minister of Finance of Georgia.
12. The organizers of lotteries shall be obligated to file at local taxation authority on a
quarterly basis the declaration form approved by the Minister of Finance of Georgia and pay
the fee not later than the 15 th day of the month following the reporting quarter.
Article 7. Administration of the payment of fee
1. The taxation authorities shall be in charge of administering of the payment of the fee set
forth under this Law.
2. Taxation bodies shall perform the administration of the payment of gambling business fee
according to the rules established under Books IV-V of the Taxation Code of Georgia.
(2. Taxation bodies shall perform administration of the payment of the gambling business fee
pursuant to the rules set forth under the Taxation Code of Georgia (17.08.2010 N 3594 shall become
effective from January 1, 2011))
Article 8. Responsibility
For the violation of this Law a payer of gambling business fee shall be imposed the sanctions

determined under Book VII of the Tax Code of Georgia and other responsibility according to
the rule established under the legislation of Georgia.
(Article 8. Responsibility (17.08.2010 N 3594 shall become effective from January 1, 2011)
For the violation of this Law the payer of gambling business fee shall be imposed the sanctions
set forth under the Tax Code of Georgia and other responsibility according to the rule set forth
under the legislation of Georgia.)
Article 9. Transitional and Final Provisions
1. Articles 4(e), 5(f) and 6(12) of this Law shall be deemed annulled from the day of the
determination of a winning entity of the tender organized by the National Lottery fund
envisaged under the Law of Georgia on Organizing Lotteries, Games of Chance and other
Winning games”
2. The present Law shall become effective from January 1, 2007.
Mikheil Saakashvili
President of Georgia
December 29, 2006 Tbilisi
N 4250 - RS