Georgia's Gambling Boom: Progress vs. Social Costs

Georgia's gaming industry is booming even amid longstanding restrictions and emerging social challenges. With a dramatic online expansion since the 2000s, the market has both invigorated the economy and raised serious concerns about underage gambling and addiction.

• The rapid digital transformation of gambling has increased accessibility to online platforms.
• A significant portion of the population now faces gambling addiction, with many starting at an alarmingly young age.
• Enhanced regulatory measures are urgently needed to balance growth with public health and social protection.

Georgia's online gambling sector began experiencing robust growth in the early 2000s, fueled by greater internet access and innovative platforms. Pioneering companies like Adjarabet, which launched in 1998, set the stage for the evolution of digital betting, and by the 2010s, several new players had emerged as leaders in this fast-paced industry.

However, this growth has not come without consequences. The surge in online betting has led to instances of minors as young as 10 engaging in gambling, with 22% of adolescent gamblers reportedly starting at age 11 or younger. The increase in accessible gambling options has also contributed to a rising number of adults grappling with addiction, with approximately 400,000 individuals in Georgia estimated to be suffering from gambling-related problems.

Amid these challenges, regulatory changes have been implemented to protect vulnerable populations. Notably, the legal gambling age was raised from 18 to 25 in 2022, while public sector employees and socially vulnerable individuals are prohibited from gambling to mitigate risks further. In spite of these measures, Georgia's gambling industry still recorded a 23% growth in 2020, with a turnover reaching 20.1 billion GEL, even as the wider economy faced significant downturns due to the pandemic.

With the World Health Organization classifying gambling as a public health concern, experts are advocating for more comprehensive preventative campaigns and the establishment of a robust regulatory body. These measures, alongside legal restrictions, are critical to counterbalancing the economic benefits of the gaming industry with the social costs incurred by its rapid expansion.