The warning came from Giorgi Mamulaishvili, head of the Gambling Business Association. He told Georgian business media outlet BMG that illegal gambling sites remain a major problem for the local market.
Mamulaishvili attributed the rise of that segment to the 2021 tax changes. In his opinion, tighter fiscal pressure pushed more activity outside the licensed system. Mamulaishvili’s estimate is that around GEL 2 billion leaves Georgia annually through illegal gambling channels.
A Fiscal Fight Behind the GEL 2 Billion Claim
Mamulaishvili stressed that besides the capital flowing out of the country, those funds also cut potential budget revenue, as they remain in the hands of operators outside Georgia’s jurisdiction. He added that legal operators have tried to combat illegal gambling sites but cannot resolve the problem without state support.
Earlier that day, Deputy Finance Minister Mikheil Dundua said that budget revenue from gambling reached GEL 1.8 billion in 2025. That was more than GEL 200 million above 2024 and almost five times the level recorded five years earlier.
Player Protection Is Part of the Dispute
The association is also framing the matter as a player protection risk. According to Mamulaishvili, concerns about minors should be viewed in terms of illegal operators instead of licensed companies alone. His argument is that legal operators work under certain controls, whereas illegal sites are harder to track down for the authorities.
Mamulaishvili added that licensed businesses managed to maintain their positions in 2023 by bringing customers back. That resulted in larger revenues and tax payments. Nevertheless, the association says that the illegal market is still active enough to require joint effort with the government.
Ministry Says Enforcement Is Ongoing
The Finance Ministry has disputed the scale of the problem. According to it, the number of illegal operators and websites within the gambling industry is not that significant. The ministry added that the authorities are still working towards ensuring proper action against illegal business.
Separately, Georgia plans to impose stricter sanctions for licensed operators. Under a draft law covered by BMG, fines for certain violations would rise, including casino-related penalties from GEL 7,000 to GEL 20,000.
The Expert Takeaway
The debate seems to have moved from the existence of illegal sites to proof of scale. If the GEL 2 billion estimate is close to accurate, Georgia has a tax revenue loss and a player-safety issue that cannot be solved by fines imposed on licensed firms. In the event that the ministry’s view is right, the state will likely continue to focus its efforts on compliance inside the legal market.
