Key Amendments

Experts at 4H Agency have studied the new bill to highlight the essence of the amendments that were proposed to incorporate in the Georgian Gambling Act. Here are the key points:

▪️ An introduction of a requirement for non-local B2B suppliers to obtain a special permit for supplying their products to B2C operators in Georgia. Exactly how the procedure for obtaining this permit would look like is yet to be defined by the competent authority.

▪️ The bill recognizes two forms of the B2B supplier profile: direct and indirect. 
When it comes to the B2B supplier profile, the bill may be interpreted in such a way that even in the case with local or non-local B2B providers supplying their products indirectly (e.g. via aggregators), such providers may be subject to a requirement for obtaining the permit as well. This initial interpretation was confirmed by our connections in the regulator.

▪️ The bill aims to define a list of essential gambling products and services that B2B providers (including non-local ones) may supply to local B2C operators.
The list includes, among others, RNG, jackpot platforms, and others. However, the list is not comprehensive and is subject to further approval by the Government of Georgia.
Please note that B2B providers (including non-local ones) that offer the services listed above without the special permit will be banned. However, the procedure of imposing such a ban is unclear at the moment.

▪️ Non-local B2B providers will be required to pay a service fee. However, the procedure for making such payment and its amount has not been defined yet.

Current Status

The bill was being considered under a special expedited procedure. According to the rules of the Georgian Parliament, an expedited procedure implies the adoption of a bill in three readings within one week of plenary sessions of the Parliament.
However, the bill wouldn’t pass other readings and had been withdrawn for further modifications. We expect the readings to resume in late Winter of 2021 or even the Spring of 2022.

According to the text of the bill, the non-local B2B providers will have to obtain their special permits to supply products/services no later than by January 1, 2022. 

However, since the Bill was not adopted and will be considered again only in the late Winter’21/Spring’22, we expect that the deadline for non-local B2B suppliers to obtain the permit will be moved to a later date.