Guest Comment from Michael Boettcher for Casino Life Issue 173
Navigating the ever-changing currents of the global gaming industry has always required a delicate balance between innovation and regulation. For over three decades, I’ve been at the helm of a business that has witnessed the rise and fall of countless trends, regulatory shifts, and market demands. Storm International, with its flagship brand Casino Shangri La, has operated in this complex system, offering gaming experiences across multiple jurisdictions as best it can in the face of increasing tax, stifling regulations and general apathy towards the industry.

One of the greatest challenges for the gaming industry today is striking the right balance between necessary oversight and fostering an environment that allows businesses to grow sustainably. Rules are, of course, essential—they protect players, ensure responsible gaming, and maintain the integrity of our industry. We in the industry are well aware of how to run our businesses in the most efficient way possible and have no desire to lose our player base because of bad decision making where we would be entitled to lose that business as a result. But excessive or poorly informed regulation by regulators and poorly advised government officials will drive legitimate operators out of business, giving rise to illegal operators who will readily fill that gap, where the risks for players and governments alike multiply. Instead of focussing on that small minority who are admittedly adversely affected by unhealthy gambling habits caused by compulsive/addictive behaviour which is a condition affecting about 10% of the population in all its forms, why not focus on supporting a business that supports millions of jobs world-wide, billions in taxes and provides entertainment to the vast majority of people who enjoy gambling within their means to do so.
This is where collaboration becomes paramount. Policy decisions that affect our industry should not be made in isolation. Governments must engage with industry stakeholders to craft frameworks that ensure both accountability and sustainability. Business leaders bring insights grounded in real-world operations, which can help shape policies that protect public interests without stifling legitimate enterprise. As history has demonstrated time and again, competition and demand are the most organic regulators of any industry. They foster innovation, elevate standards, and ensure markets remain vibrant and fair.
Of course, this doesn’t diminish the importance of rules. Responsible gaming is important and we in the industry are well aware of that. At Storm International, we’ve invested heavily in systems and training to promote safe gaming environments, ensuring that our customers can enjoy themselves responsibly. But responsible gaming goes hand in hand with a thriving, profitable business. Operators must be allowed to innovate and grow, not merely survive. After all, a sustainable gaming industry contributes significantly to economies through job creation, tourism, and taxation—provided the environment allows for success, something many people in government are blind to, focussing more on making themselves feel important rather than supporting our industry, without which, in some cases, they wouldn't have a job.
As we prepare for ICE 2025 in Barcelona, I encourage us all—industry leaders, regulators, and stakeholders alike—to engage in meaningful dialogue. Let us embrace innovative solutions and draw from the wealth of experience within our industry to shape a future where gaming continues to entertain millions responsibly while contributing positively to local economies. I know it's a big ask but wouldn't it be nice if the majority of the profit from the billions of risk taking investment made by businesspeople into this world-wide industry was returned to the investors, rather than to government that neither invests nor contributes to our well being in any way, although I won't hold my breath?
Michael Boettcher
Founder and President, Storm International
Previously
Other news

Navigating the ever-changing currents of the global gaming industry has always required a delicate balance between innovation and regulation. For over three decades, I’ve been at the helm of a business that has witnessed the rise and fall of countless trends, regulatory shifts, and market demands. Storm International, with its flagship brand Casino Shangri La, has operated in this complex system, offering gaming experiences across multiple jurisdictions as best it can in the face of increasing tax, stifling regulations and general apathy towards the industry.

Darren Keane, CEO of Storm International, discusses the future of Georgia’s casino industry amidst current challenges, including a downturn in foreign visitors and a new 5% cash-out tax that could threaten the sector's viability. Highlighting the critical role of foreign players, Keane stresses the need for tax reforms to keep Georgia competitive in the region.

On September 12, the panel discussion "Casino Business in Georgia – Challenges and Opportunities" took place at the Batumi Gaming Fest, bringing together industry experts to discuss the key hurdles and potential growth areas for Georgia’s casino sector. The discussion highlighted the complexities brought on by new regulations, taxation policies, and the evolving business environment in the country. A particular focus was on the impact of recent changes, including a 5% tax on winnings and the restrictions on advertising, which continue to shape the operational landscape for casino operators.

On September 23, Shangri La Casino in Batumi was officially closed following irreconcilable differences between the partners of the casino. Storm International, with over 30 years of expertise in managing premium casinos, made this decision to protect the integrity and reputation of the Shangri La brand.

Darren Keane, CEO of Storm International, will participate in the panel discussion "Casino Business in Georgia – Challenges and Opportunities" at the Batumi Gaming Fest. This prominent event, scheduled for September 12, focuses on land-based and online casino operations, bringing together regional and international professionals, market participants, and lawmakers to share experiences and forge new partnerships.
Keane emphasized the importance of discussing current legislation affecting foreign players. "It is crucial for us to speak at the conference because the new taxation on foreign players may deter them from visiting Georgia. Instead, they might choose destinations like Cyprus and Armenia, where there are no such taxes on winnings. A decline in foreign visitors could result in casino closures, increased unemployment, and a significant reduction in tax revenues for both federal and regional governments," Keane stated.
The Batumi Gaming Fest promises to be a vital forum for discussing the future of the casino industry in Georgia amidst evolving regulatory landscapes.

Navigating the Casino Landscape in Georgia: Insights from the Tbilisi Gaming Festival
The Tbilisi Gaming Festival held on September 15-16, 2023, brought together industry experts and casino operators to discuss the ever-evolving landscape of land-based casinos in Georgia. Among the discussions, the panel focused on "Land-Based Casino Operators in Georgia – Opportunities and Challenges of the Growing Market." John Harrak, Director VIP & Player Development, Executive Board Member of Storm International - a prominent figure in the industry, shared valuable insights on several key topics.
Adapting to Post-Pandemic Trends and opportunities, challenges within the growing market in Georgia
John began by addressing the market trends in Tbilisi, noting that the casino industry was gradually recovering from the pandemic's impact. While Tbilisi and Batumi represent distinct markets, he highlighted Tbilisi's appeal as the capital city, offering a range of attractions for players and their families. With a majority of players being foreigners, Tbilisi's summer season remained vibrant, dispelling concerns about seasonal fluctuations.
Regarding the state of the casino business in Georgia, John Harrak emphasized that it was not in a developmental phase but a fully developed industry. New casinos continually enter the market, but they do so within an already mature sector. He stressed the importance of maintaining high service standards and adapting to evolving customer needs to thrive in this competitive environment.
Navigating Prohibited Advertising
A major challenge facing land-based casinos in Georgia is the prohibition of advertising, which aims to protect the local market. However, John explained that more than 90% of their visitors are foreigners, and the goal is not to attract Georgian players. The advertising restrictions primarily affect online casinos, creating a challenge for land-based operators. Despite these challenges, John emphasized the necessity of advertising to ensure a steady influx of customers.
Coexistence and Cooperation
“All the players that are coming to Batumi are already spoiled. Most of them went to Cyprus and Cyprus has very few government regulations. In general, Batumi has great operators with even greater service levels. They understand what they can do to make sure the business is safe. They protect and look out for their customers.”- John highlighted the unique dynamic and collaborative spirit among casino operators in Georgia.
Maintaining a Skilled Workforce
Addressing the issue of retaining staff, John noted that the casino business is typically favored by younger individuals. In Tbilisi, where there is an established casino presence, attracting and retaining staff is somewhat easier. Shangri La, for instance, runs training schools to nurture young talents and offers them opportunities for career advancement. The focus is not solely on monetary incentives but on providing a pathway to a promising future. This approach helps mitigate the challenges of staff turnover.
Supporting the Government and Industry
John emphasized the importance of collaboration between the government and the casino industry. Casinos have actively supported government initiatives, recognizing the mutual benefits of a thriving tourism and entertainment sector. This collaborative spirit has been particularly crucial during the pandemic, highlighting the intertwined interests of both parties.
In conclusion, the panel discussion shed light on the intricacies of operating land-based casinos in Georgia. Despite challenges such as advertising restrictions and staff retention, the industry continues to grow and adapt. The harmonious coexistence of operators and their support for government initiatives bode well for the future of the casino industry in Georgia.

It's been a busy week! Shangri La Tsakhadzor hosted Russian Poker Tour from 3rd to 13th of February 2023.

On September 22, 2022, the Shangri La Tbilisi casino celebrated its birthday. The celebration of casino 10th anniversary were set with grandeur and glamor. The square in front of the casino has turned into a real carnival show. Guests were greeted by artists of the original genre in colorful costumes, a street orchestra set a wonderful rhythm for the day at the very beginning of the evening, and a fire show in front of the casino entrance became a vivid embodiment of the celebration of the anniversary.

Casino Shangri La Tbilisi has been awarded with No.1 Status for the fifth time.

The International Gaming Awards (IGA) has announced the shortlists in various categories for the upcoming ceremony on 11th of April. The shortlist voting concluded on Dec. 15 2021. This year, for the first time IGA had 681 separate nominations making it hugely competitive for gaming industry operators.

On December the 5th the first legal casino in the city - Shangri La opened in Kharkiv. The international casino is located in the five-star Kharkiv Palace hotel in the very center of the city. Before the opening of the casino, representatives of Storm International held a press conference for journalists and the public.

On April 9, the Gambling Regulatory Commission (KRAIL) announced the issuance of a license to Storm Ukraine LLC. This is the official permission to open a land-based casino under the international Shangri La brand in the legendary five-star Fairmont hotel in the very center of Kiev.

Shangri La Casino and Sportsbook is excited to announce our Online Affiliate and Partnership opportunity.

Lavrenty Gubin, Marketing and PR Director of the company took part in the event as a speaker.