Georgia, in the heart of the Caucases, may be about to experience a live poker boom. The country has recently passed legislation which commercialises large ‘international’ poker events and legislates how live poker tournaments can be run and taxed.
An article on the website Democracy & Freedom Watch reports that the legislation, which was passed in late October includes:
-Allowing operators to charge a fee (previously this was not allowed)
-Exempting foreign players from a 20% tax on winnings
-Limiting the participation of Georgian nationals to a maximum of 20% of the total field
Previously, all players had been subject to a personal 20% deduction for government taxes from any winnings, but this will still apply for Georgian nationals.
There is a stipulation in the bill that such tax exemptions apply to foreign participants of ‘International Events’ for tournaments with a prize-pool in excess of GEL 3m ($1.15m USD). Another apparent stipulation of the bill is that tournaments must have a guarantee.
It’s not clear whether these relate to the cumulative prize pools from all events at a festival, or apply to individual tournaments. It will make quite a big difference if only Main Events and marquee side events meet the tax exemption status, with perhaps satellites and side events being conducted under different rules.
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The DFW article also reports a curious rule that a maximum of 20% of the total participants in an event can be of Georgian nationality. How this is enforced seems remains to be seen, with further clarification required on whether it relates to individual tournaments, or overall festival participation.
Amendments to the new laws are also possible, as there has been substantial opposition to the legislation, with some criticising the apparent preferential treatment that the government is affording the gambling industry over other sectors. Religious leaders in the Georgian Orthodox Church are also said to be sceptical of the new rules, but are yet to make a formal response.
For the last few years, only the Eurasian Poker Tour (EAPT) has held events in Georgia (at the Eclipse Casino in Batumi). The most recent festival, which was held in early October, had 35 events on the schedule and generated close to $2m in prize pools. The largest event was the Main Event, which had a prize pool of $615,000.
It remains to be seen whether the new rules will spark a significant increase in the scheduling of visiting live poker tours and series. No new events have been announced yet for Georgia, but traveling players are advised to seek clarification of the exact rules before making plans to play in any events that are announced in the near future.
Photos courtesy of EAPT