Home / Business / World Famous Casino Brand Enters Georgia

World Famous Casino Brand Enters Georgia

The world famous  casino brand will enter  Georgia in the near future. Negotiations are already underway with the company – the Deputy Economy Minister Keti Bochorishvili told commersant.ge, however, declined to disclose further details at this point.

As reported, Spanish businessmen expressed their interest in the gambling business in Georgia.

The MP Zurab Tkemaladze stated last September that Spanish investors were  interested in the gambling business and shared their own experiences with relevant agencies.

Casino “Adjara” former shareholder and a former political prisoner Iva Chigvinadze, whose name is linked to the Spanish investors, confirmed that the investors  were holding talks with members of the parliamentary committee studying the gambling business.

Chigvinadze claimed that investors were engaged in purchasing and repairing  facilities in Tbilisi and Batumi. In his words, soon Russian investors will  be also interested in the Georgian gambling business.

However, later it was reported that the Spanish investment company stopped investing in Georgia.

Minister of Finance also spoke about the plans  of  serious investors to make investments in the gaming business in Georgia at the beginning of June.

“Commersant” wrote that Georgian government softened its attitude to gambling business- experts came to such conclusion after Finance Minister’s statement that decline in economic growth in April is associated with reduced activity of gambling business.

Currently, the government encourages the creation of new casinos that in the short term will lead to a sharp increase in their number. In particular, a boom is expected in the seaside resort of Batumi, where six casinos are functioning, and by 2017 their number will grow by 8.

The number of casinos is increasing in Tbilisi as well – in particular, the company “Rakia” is going to renovate the hotel “Sheraton”, where a casino will be located.

Against this background, the Association of Young Economists of Georgia requires a tightening of regulations in relation to gambling, as gambling is tightly controlled in all civilized countries, including online casinos.

According to the chief editor of “Banking and Finance” Zurab Kukuladze, the government’s argument about the fact that the opening of  casinos in the regions will contribute to the economic revival is wrong.

“Of course, the opening of the casinos leads to improvement of infrastructure and employment of several dozen people, but at the same time more people are suffering from gambling. In the end, the social background deteriorates, and the state does not get much profit, as taxes on gambling are not very high. It is profitable only for the casino owners. The government should not stimulate the casinos,but small and medium-sized businesses. One can only welcome the fact that these programs exist, but public awareness about them is low, very few people use them. Foreign investment is nice, but it would be nice to intensify local capital,”- the editor notes.