Turkish President Recep Tayyp Erdogan recently asked Georgian Prime Minister Bidzina Ivanishvili to consider shutting down that nation’s casinos located near the Turkish border. In response, Ivanishvili said he understood Erdogan’s position, but said shutting down casinos was not up to him.
Turkey banned casinos in 1998, but numerous casinos operate in neighboring Georgia. In 2012 the two countries signed an agreement allowing easier movement of people across the border. As a result, Turks spend millions at Georgian casinos, especially the 11 venues in the tourist destination of Batumi on Turkey’s northeastern border on the Black Sea. Each casino in Batumi pays $108,000 for an annual gaming license, which can be waived if the casino develops a hotel with at least 100 rooms. Batumi’s casinos generate $8.7 million in gambling taxes and fees. Obviously Georgia wants to maintain this income source, although the number of Turks crossing the border has decreased since the July 15 failed coup due to tightened borders.
Zurab Kukuladze, an analyst from the Association of Young Financiers and Businessmen, said, “It is very difficult to accurately account for the revenues being generated by each casino as the accounting process is not simple and transparent. The administration is also very complex. Casinos do not pay tax on profit, they are subject to collection. Moreover, an operator can start a casino and launch a number of other services at the resort but will only be held responsible to pay the collection. Therefore it is difficult to predict the exact turnover from casinos.”
The Turkish ambassador in Batumi reportedly has been receiving calls from Turkish wives who want their husbands sent home from the casinos. Ivanishvili said he was aware that numerous families were complaining but the gambling operations were good for the economy and tourism. However, he noted some of the regulations governing the casino industry could be tightened to address some of the concerns.
