Rules for organizing and licensing lotteries, casinos, gambling and other lucrative games
Before we proceed, let’s define the terms, because, as far as you know, we need to stay on the same stage. Some terms that you need to keep well understand before we proceed about details on how to start a gaming business in Georgia.
The following are the lotteries:
A) Circulation Lottery – the lottery, whose process is divided into circles – separate complete cycles, from ticket preparation and sale to lottery, including the issuance and sale of non-profitable ticket holders, including expert examination and utilization of the won tickets. The lottery ticket holder determines the profitability of the ticket only after the draw;
B) Instant Lottery – the lottery, the outcome of which is determined by checking the ticket on the spot or by holding the lot directly on that ticket;
C) Target Lottery – A lottery, the part of the proceeds of which will be used for a specific purpose. Including for the development of education, culture, physical culture and sports medicine and health, recreation and tourism, literature, the arts or any other field or for charitable purposes;
D) Incentive Lottery – Lottery, which is conducted for the purpose of fast and efficient realization of different types of products (services) and delivered to the customer free of charge;
The winning games are as follows
A) Lotto – a game in which the participant chooses a number or a combination of symbols and the winnings depend on the total or partial coincidence of the numerical or symbol combinations;
B) Bookmaker – a game in which a participant makes a prediction of a game, sporting event or other situation, the outcome of an event, where winnings depend on the total or partial coincidence of the prediction and results;
C) System (electronic) gaming – a game in which participants’ predictions and bets are fixed via electronic devices, by transmitting special channels to the information headquarters for its participation in the storage and drawing of information in its memory; In system (electronic) games, the ticket may be replaced by the official record on paper, electronic, magnetic or other information carriers;
D) Bingo – a game in which the numerical cards or the card are made by matching the numerical combinations derived from a special device and it is determined by the amount of the prize pool;
E) Other games whereby the player is given the opportunity to win monetary or other winnings by paying the game fee or placing a bet.
Must know facts about starting a gambling business in Georgia:
* All types of lotteries and other lucrative games held on the territory of Georgia shall be subject to licensing under the Law of Georgia on Entrepreneurial Licenses.
* Only the legal entity whose statute does not prohibit such activity is entitled to hold the license to hold lotteries and other profitable games.
* If a license seeker submits a patent or a document certifying the protection of copyright and neighboring rights by Sakpatenti or the Georgian Copyright Agency, then to another legal entity contemplating the conduct of lotteries or other winning games by analogous rules, technical guidelines, name or ticket design. , License will not be issued .
* Prior to the realization of each lottery ticket for the purpose of protecting the rights of citizens participating in the lottery, the lottery organizer shall submit a financial guarantee to the Ministry of Finance on the provision of prize money.
* To avoid falsification of lottery tickets, other lottery tickets, lottery tickets and lottery tickets are subject to mandatory legalization. Legalization rules are defined by the Ministry of Finance of Georgia.
How to apply for Gambling Business License?
Here are steps to get a Gambling License in Republic ofGeorgia. Starting a business in Georgia is not as complicated as It seemsbelow if you get relevant assistant.
The license applicant for lotteries and other lucrative games must submit the following documents to the Ministry of Finance:
A) written application of the license seeker.
The application should include:
– for individuals – name, surname, place and date of birth, registration data, number, profession, job and place of residence in the Business Register;
– for a legal entity – trade name, organizational-legal form, location (legal address), name and surname of the authorized representative;
– Indication of which license a person requires.
B) the statute and the court decree on registration (for the natural person only the court decree);
C) Certificate on tax evasion and non-existence of debt to the budget; Indicating the registration number;
D) Certificate of Registration of the State Department of Statistics of Georgia;
E) the accounting balance of the last reporting period of the business activity, with the auditor’s report, and for the natural person – the tax return of the relevant period;
F) A certificate from a serving bank, in which the license applicant has opened a settlement account (indicating the account number), shall be binding only on a legal entity;
G) a copy of the contract concluded between the license seeker and the stamp, where a lottery ticket or other document certifying the participation in the game will be printed, indicating the number and value of tickets to be printed on each run;
H) Estimated Lottery Arrangement Estimated by the Auditor (excluding Bookmaker, Lotto, Bingo, System (Electronic) Gaming and Incentive Lottery);
I) rules for lottery and other winning games (regulations);
J) Agreement on Expertise and Utilization of Unrealized and Earned Tickets;
K) Agreement on legalization of lottery tickets or lottery documents;
L) Sample lottery ticket with four copies, indicating the signs of counterfeiting, signed and stamped by the head of an approved legal entity, agreed with the Ministry of Finance of Georgia.
The following details must be mentioned on the lottery ticket:
– Name, address, telephone number of the legal entity;
– Ticket price (only for circulation and instant lotteries);
– Ticket series and numbers (only required for circulation and momentary lotteries);
– License number issued by the Ministry of Finance;
– Date and place of circulation lottery;
– The rule of the game
– date and place of receipt;
M) a public contract or consent between the organizer of the game and the owner of the playing area (referring to lotto, bingo, circulation lottery, promotional circulation lottery, bookmaker and systemic electronic games if necessary). If the area is the property of the organizer, he must submit proof of ownership of the area.
N) Conditions for organizing lotteries and other winning games, in two copies, which shall include:
– the date and venue of the lottery and other winning games;
– Total Lottery Volume (Amount, Number of Tickets and Numbering)
– Amount of money to be earned (prize fund), which shall be at least 50 per cent of the volume of the lottery issued;
– List of profits, their number and value;
– Place, date and time limit for issuance of cash or property. In the case of circulated lotteries, the deadline for issuance of winnings must be no more than 30 calendar days after the official winnings are published; lottery volume should not be less than 10,000 GEL;
O) Document certifying payment of the license fee;
P) in the case of targeted lotteries – consent from the ministry or department in the sector whose activity is to stimulate the proceeds from the lottery.
Q) The licensor is authorized to request other documents that more fully reflect the technology and features of the game arrangement.
These are all requirements for Gambling License Application for starting a business in Georgia.
Government Related Fees for Gambling Business License
Licensing is paid and carried out in accordance with the Law on License Fees. Be aware that, this is only the governmentrelated fee and some expenses are related to above mentioned supportingdocumentation preparation. When I state government fees in my blogs, somepeople wonder why do we charge more. Well, first of all preparing supportingdocumentations can often times cost you more than legal fee, what’s more, weobviously value charge for our expertise. It’s not a secret. Well, yes, some ofpeople approach us to help for free, we can not afford It at the moment, we aresorry. We spend lots of time and we believe the prices we set for ourassistance are fair value for our expertise and for the time and energy whichwe save for you. There are only fees to apply for license for Gambling Businessin Georgia. Starting a Company in Georgia is separate procedure.
Permission to play gambling and profitable games:
A) Arrangement of incentive draw – 15 000 GEL;
B) Arrangement of slot machines – from GEL 50,000 to GEL 1 000 000 per year;
C) Lotto and bingo arrangement (each species) – GEL 15,000 per year;
D) Bookmaking – from GEL 30,000 to GEL 300,000 per year;
E) Establishment of a gambling club – from GEL 10 000 to GEL 50 000 per year.