US Department of State: Georgia should take steps to supervise its gaming industry

The US Department of State says in its 2019 International Narcotics Control Strategy Report that Georgia should take steps to supervise its gaming industry.

The report reads that there are 416 lotteries and gaming institutions registered in Georgia and 31 casinos.

The growth of the gaming industry, including internet gaming, is concerning. In 2017, casinos and gaming institutions filed over 500 CTRs [currency transaction reports] but zero STRs [suspicious transaction reports]. No STRs by the gaming industry in past years raises questions about their compliance with existing regulations and the effectiveness of supervision,” the Department of State says.

The report also says that Bitcoin and other virtual currencies are “becoming extremely popular” in Georgia, while the country does not have experienced cyber crime labs and has only a handful of qualified and competent digital forensic analysts.

Training and capacity-building efforts need to be directed toward establishing state-of-the-art cybercrime labs, improving analyst capabilities, and improving legislation on collecting and analyzing digital evidence,” reads the report.

The US Department of State claims that much of the illegal income in Georgia derives from banking fraud, cybercrime, and misappropriation of funds.

As Georgia is located in a significant and well-established trafficking corridor, bulk cash smuggling and money laundering are highly likely. The Russian-occupied territories of South Ossetia and Abkhazia fall outside the control of Georgian authorities and are not subject to monitoring,” the report says.

Speaking about drugs the report says that the Georgian government and locals NGOs report substantial drug and substance abuse challenges with an estimated 50,000 illicit drug users in the country.

Synthetic and ‘club’ drugs remain the most popular, particularly with the younger generation,” the report said, and mentioned the April 2018 police raids on two popular Georgian nightclubs led to riots in Tbilisi.

The report says that in July 2018, Georgia legalised the cultivation and production of cannabis for medical purposes and decriminalized its personal use.

There is insufficient evidence to evaluate whether this will affect the consumption, sale, and transit of other illicit drugs,” the report reads.

The US Department of State says that the government of Georgia actively cooperates with a wide range of actors to combat drug trafficking and consumption and to develop comprehensive responses to drug dependency.

See the full report here.