A new player may soon appear in the gambing business of the region. Gambling legalization has been actively discussed in Azerbaijan. Azerbaijani businessman and singer Emin Agalarov is actively involved in debates on the topic. He owns the "Sea Breeze" resort complex, which is located in the traditional and conservative village of Nardaran, a 30-minute drive from Baku.
Emin Agalarov expressed his desire to restore casino activities. The Azerbaijani businessman says the government is discussing his initiative. Emin Agalarov hopes that gambling will become legal in Azerbaijan. He has his own arguments. He says that it will have a huge positive impact on the country's economy and will increase the number of vacationers in the resorts. He used Batumi as an example and notes that the city the city has been developing rapidly in the past 15 years, including thanks in part to casinos.
What will happen if the Azerbaijani government accepts the businessman's initiative and legalizes gambling in the country? Will this increase competition in the region? What challenges will Georgia face with the advent of a new player on the market? We addressed these questions to the head of the Georgian Gambling Association. Giorgi Mamulaishvili says that Azerbaijan cannot compete with Georgia.
"I do not consider Azerbaijan a competitor to Georgia. Legalization has been discussed for a long time. For legalization, it is not enough to pass a law. Legalization goes through many stages. Georgia has been on this path since 2005 and has gone through quite difficult stages. It will be difficult for Azerbaijan to come up with something new in 1-2 years to become Georgia’s rival. The gambling business in Armenia has long been legalised, but it is not our competitor. Georgia is far ahead of both countries, it occupies a leading position in the region. Apart from that, the political situation in Azerbaijan differs from the one in Georgia. Azerbaijan has a quite visible corruption so it is difficult to attract investors to develop the business," says Giorgi Mamulaishvili.
We asked the head of the Gambling Business Association what factors determine Georgia's advantage. In Giorgi Mamulaishvili’s words, Georgia's geographical location, investor interest, high level of operator development and simplified tax systems make Georgia the region’s strong player.
"There are three major foreign operators in Georgia. The companies with Georgian shareholders are quite developed. All this boosts the business development. The geographical location favors Georgia. The tax systems in Georgia are much better developed than in other countries of the region. To look at all this comprehensively, Georgia is in the best conditions," says Giorgi Mamulaishvili points out.
