Gambling market of Georgia: Development prospects of new gaming zones

Gambling market of Georgia

In Georgia, a bill was initiated according to which gambling venues may appear on the territory of the Grigoleti, Ureki and Poti settlements. Read more in the analytical material from Login Casino on the prospects for the development of casinos in uncharted territories.

 

It is not a stretch to note that in recent years the gambling business has become one of the fastest growing industries in Georgia. This is evidenced not only by the indicators of tax revenues from gambling operations, but also by the constantly increasing tourist traffic and all kinds of incentives for related industries, in particular, hotel and restaurant industries.

Due to the positive dynamics, the government of the country has initiated the expansion of the scope of activities of land based gambling operators. For this reason, a bill was created that will open new gambling venues in Grigoleti, Ureki and Poti, as well as consolidate the abolition of some tax rates for further encouragement of entrepreneurs interested in the development of the casino industry. The purpose of adopting the draft of a bill is not only the local development of the gambling industry, but also the stimulation of the development of the settlements.

The editors of Login Casino analyzed the prospects for expanding the market in Grigoleti, Ureki and Poti based on the general dynamics of gambling development in Georgia, as well as the experts’ opinions regarding this issue.

 

Grigoleti, Ureki and Poti: General Information

 

Grigoleti

The village of Grigoleti belongs to the Lanchkhuti municipality of Guria region, and also belongs to the Grmagelskiy rural community.

Grigoleti gambling market

It lies on the Guri lowland, rising to three meters above sea level. The area is rich not only in minerals, as there are occurrences of peat, but also in a good infrastructure location – an international highway connecting Tbilisi, Senaki, Poti and Sarpi passes through the village. Its location on the Black Sea coast is another powerful argument in favor of the development of tourist and related areas.

According to the last census data, the population of the village is 235 people. Most of them are ethnic Georgians.

 

Poti

Poti is a city in the western part of Georgia, located in the province of Samegrelo-Upper Svaneti. Like Grigoleti, it is located on the Black Sea, at the mouth of the Rioni River.

Historical development and modern industry to a great extent are determined by the fact that the port of the same name is located on the east coast of Poti. From olden times the object has been one of the three main ports of the country and at present it has the reputation of one of the largest ports of the Black Sea.

The settlement is considered to be one of the most economically developed regions of Georgia, as it plays an exceptional role in the corridor between Europe and Asia.

In 2008, the state sold 51% of the port shares to the S Ras Al Khaimah (RAK) company from the United Arab Emirates. This measure was necessary for the development of the free industrial zone (FIZ), as well as for getting financing for the construction of a new terminal. The presentation of the FIZ occurred in the same year.

The development plan of this territory is extremely ambitious, the Georgian government plans to create new water areas by cutting off the river.

Poti gambling market

According to the data in 2012, the population of Poti is 47,900 people.

 

Ureki

The visiting card of the urban-type settlement of Ureki in Ozurgeti Municipality are beaches with magnetic sands that have healing properties.

The village as well as the above listed regions is located on the Black Sea coast. Here four rivers flow into the sea. The neighborhood of Batumi and Poti, which are 60 and 10 km away respectively, makes Ureki one of the most popular resort zones of the country.

 

Uncharted Territories and Gambling Business Development

According to official data, the turnover of the gambling industry has increased 10 times since 2012. In 2017, gambling industry operators generated $ 2.33 billion, while increasing the figure for non-specialized trade by $ 1.6 billion.

It is revealing that a data slice for the last six years shows that the economic indicators of bookmaking and gambling are several times higher than those of electric-power and communications industries.

Proceeding from the above, it should be noted that the progress of the gaming industry in Georgia is obvious, as it is expressed in numbers.

 

Grigoleti, Ureki and Poti: pros and cons

 

Upsides

In addition to the obvious economic benefits of building a casino, there is also a number of social benefits.

As we’ve already said, the settlements in which the construction of gambling facilities is planned are located along the Black Sea, which makes them attractive from viewpoint of tourism. According to experts, it is the combination of tourist attractiveness and the availability of land-based gambling venues that creates the most favorable conditions for the development of both industries. This is the first positive argument in support of the bill.

Georgia gambling upsides

An important aspect is the investment attractiveness. In this regard, Georgia, like no one, is famous for the scale of attraction of foreign capital. Companies from Turkey, the United States, Ukraine, Russia and Arab countries are represented on the market. Also, the legislative establishment has provided a number of benefits for the future investors. First, the tax charge for the construction of casinos will be reduced. In addition, since the casino will be located in the buildings of large hotels, operators will be exempt from duties for a ten-year period.

Infrastructure arrangement is another upside of the construction of gambling venue. Each gambling operator aspires to increase the flow of visitors and Georgia is famous for attracting tourists from Turkey, Israel and Arab states.

Accordingly, for the improvement of their own business, investors will have to invest in infrastructure projects, which in general will have a positive impact on the country infrastructure.

An important factor that has a great effect on the attitude of the authorities to the gambling business is the creating of new vacancies. The problem of unemployment is the issue for the day in Georgia.

The president of the Casino Association in Adjara Shota Amiranashvili shared the data that at present more than 5 thousand people are employed at land based gambling facilities. At the same time, the expert adds that not only employment itself is important, but also wages, which are several times higher than the national average.

 

Risks

Georgia gambling risks

One of the most difficult issues for Georgia is the struggle to impose restrictions on aggressive and unregulated advertising. However, after the enactment of the law on regulation of gambling advertising, this negative aspect should be eliminated.

From a social point of view, many residents of Georgia have a negative attitude towards the construction of gambling venues, because due to the high level of unemployment and the desire for fast and easy money, many poor people over-indulge gambling. According to experts, it is necessary to approach this issue thoroughly and to conduct awareness-raising work on the fact that gambling is entertainment, and not a way of earning money.

 

Conclusion

Taking into account the whole dynamics of the gambling market in the country, it can be concluded that the construction of gambling venues in Grigoleti, Ureki and Poti has great potential. The gambling industry will support the development of infrastructure and social projects, the creation of new vacancies with high wages, the investment attractiveness of projects and the experience of foreign companies in the market, and, of course, generous tax payments to the country’s budget.

According to many experts, the risk factors of negative impact are smoothed over by the rigidity of legislative regulation and the work of gambling operators with the population.

It bears reminding that in Georgian gambling venues the innovative slot machines will be placed.

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