Casinos to be moved away from Tbilisi
Major changes await the gambling business: either taxes on casinos will be dramatically increased, or the government will try to rid Tbilisi of casinos altogether and force the gaming business to take root elsewhere, presumably Batumi or Tskhaltubo. It is rumored that these developments are connected with the appearance of new owners or perhaps an effort on the part of one owner to gain a monopoly in the industry.
The gaming boom in Georgia, especially in Tbilisi, began in 1997. The fact that gambling is banned in neighboring countries - Turkey and Azerbaijan - resulted in tremendous profits for Tbilisi casinos. Today, the gambling business is one of the most profitable and least transparent in Georgia. There are about 30 casinos in Tbilisi that contribute roughly GEL 450 thousand to the city budget annually. Current legislation provides that casino owners pay a fixed tax of GEL 2 thousand for each table.
Together with the adoption of the new tax code, the government is trying to gain control over the gaming business, though a relevant agreement on the taxation of casinos has not yet been reached. According to one version, the practice of taxing casinos per table can be continued, but the rate will increase to GEL 10 thousand. The casino owners are not against raising taxes, but they think GEL 5 thousand per table would be more fair. In addition they maintain that there should be a minimum of 7-8 tables in each casino.
According to the another version, casinos will have to pay a onetime lump sum - GEL 1 million in Tbilisi, GEL 20,000 in Batumi and Tskaltubo, and in all other regions - GEL 500,000. As the newspaper Bankebi da Pinansebi reports, some regard that this tax should be GEL 3 million in Tbilisi and GEL 500 thousand in Batumi and Tskaltubo.
Obviously, such regulations will force casino owners to move their businesses from Tbilisi to areas with a lower tax rate. The idea is to establish so-called "Casino Cities "in Batumi and Tskaltubo. These cities were chose due to existence of airports and the hotels, which will allow them to accommodate visiting tourists. It is said that the Ministry of Finance favors this idea, though it has drawn an unenthusiastic response form Tbilisi casino owners and the roughly 3,000 residents of the capital employed in this industry.
The existence of the 'Casino Cities' was also discussed during former President Eduard Shevardnadze's administration, but at that time Mtskheta and Bazaleti were considered the prime candidates. Some feared then that the establishment of such gambling havens would lead to the whole industry falling into the hands of one businessman. These fears persist to this day, though there is no longer suspicion that such a monopolist will be a relative of Shevardnadze.
By M. Alkhazashvili