Parliament of Georgia adopted the law on changes to the Law on Organizing Lotteries, Games of Chance and Other Prize Games

  • On 25 June 2020, Changes to the Law on Organizing Lotteries, Games of Chance and Other Prize Games was published on the website of the Legislative Herald of Georgia;
  • Law establishes a new type of activity subject to licensing - provision of games of chance or other prize games. This includes the provision of games of chance and other prize games and/or provision of essential products/services to organizers of games of chance and other prize games on the bases of a license issued pursuant to the Law on Licenses and Permits.
  • Pursuant to the law, Revenue Service (RS) is the entity responsible for the issuance of license. License issued is valid for five years.
  • Law sets forth the requirements and necessary documents to be submitted to acquire a license.
  • If the service provided by the entity already holding the license is essentially modified or changed, license holder is obliged to notify the RS for obtaining the consent. License holder is not allowed to provide modified service if the respective consent is not given.
  • Violation of the conditions of the license will result in the fine for 2’000 GEL. If the fine is not paid within the period prescribed it will be increased up to 10’000 GEL.
  • According to the law, the RS is authorized to introduce an electronic control system through a selected person in accordance with the law in order to control the implementation of license conditions both within the scope of the inspection and in the current mode.
  • Law also stipulates that the RS have the power to control the compliance with license conditions. For this purpose, it is possible to check the license holder’s degree of compliance with the requirements set by this Law and other normative acts, at any time without quantitative restrictions.
  • Organizers of games of chance and other prize games are obliged to check the ID of the entrants. In addition, information obtained by the organizer must be stored pursuant to the law, for the duration of 5 years, in the database specifically created for this purpose. This information is confidential and cannot be disclosed to the third parties, unless expressly provided by the law.
  • Law also prescribes that the gambling machinery can only be utilized if it has not only distinctive designation (factory number) but also necessary equipment for electronic control.
  • Changes to the Law became effective upon its publication.

Source and date of publication: The Legislative Herald of Georgia; 25.06.2020.

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