PWInsider - WWE News, Wrestling News, WWE

THE HISTORY OF THE SHANGRI LA BRAND: FOUNDATION, DEVELOPMENT, CHANGES

Michael Boettcher is one of the most famous personalities associated with the gambling industry. He is the founder of Storm International, which once owned a large elite gambling clubs and video slots network in Moscow. Today, the brand has left the Russian Federation, moved its casinos to other countries.

Dozens of legal casinos operate in Tbilisi, as catchy banners at the city’s airport eloquently indicate. However, this advertisement is far from a defiantly huge advertising billboard that rises above the road leading to the Georgian capital. This is a well-known brand Shangri La.

This establishment is a benchmark for many owners of places with roulette and cards. It is owned by Storm International of Michael Boettcher and is located in a building with a glass facade. The complex itself is a local landmark, which tourists often include to their itinerary.

Today, Shangri La is focused on wealthy players from Arab states who come to have fun in Tbilisi and other country’s cities which are neighboring Russia. What changes have occurred in Storm International business with company’s departure from Russian Federation?

How it all began

Michael Boettcher came to the Russian capital in 1992, when perestroika opened up new opportunities for businessmen. The market was free, at first there were only a few competitors in any sphere, so almost any entrepreneur who had connections and capital could open a place with gambling entertainment.

In the early nineties, many foreigners arrived to the Russian capital, who gave the gambling business a civilized form. And Michael turned out to be one of those individuals who led the local industry to the top. Several years passed before the company opened some of the most popular points in Moscow: Wells Fargo, Kings, Queens, Metropol.

Starting from zeros, the situation in the Russian industry has stabilized. In addition, the sphere has reached such level that gained significant role in the industry.

The era of prosperity and high income has arrived.

In 2008, Boettcher was in charge of several Moscow gambling establishments at once: Shangri La, Drummer, New York, Jazz Town, Carnival. In the latter there were 150 tables. The company also owned a network of restaurants and bars, 25 halls with slots (a total of 2,000 devices).

Everything was great, until in 2006 the State Duma adopted a law on the transfer of casinos to special zones, which was proposed by Vladimir Putin. The activities of even the most honest gambling clubs in the rest of Russia were completely blocked.

Gambling sphere representatives were offered to move to 4 zones with a special status. After the adoption of a restrictive law, many illegal halls appeared in the capital. Some of them had previously worked legally, but were forced to go underground. Boettcher tried to reach a high government level, came up with various initiatives to avoid stopping the activity. So, he proposed to increase the age limit for visitors from 18 to 21 years.

As a result, Storm International left Russia and is developing business in neighboring countries. Now the company owns 4 clubs, for which the management has chosen Minsk, Yerevan, Riga and Tbilisi. There the business is in a legal position. In addition, the holding owns a halls network with slot machines in Germany. The number of staff reached 2,000 in 2018. Most of the employees are in the main city of Armenia - 700. The capital of Georgia occupies second place - 450 employees.

Michael Boettcher and Darren Keane, Storm International CEO, see great promise in the online platforms development. Recently, the company opened a virtual casino PlayShangriLa, which shows stable growth.

Shangri La now

For example, places in Yerevan and Tbilisi are aimed at guests from Arab countries. Riga and Minsk casino clubs are more focused on Russian, Ukrainian and local audiences, although there are also many visitors from other regions. An illustration of the current state of affairs is the fact that 70% of Tbilisi units are provided by foreigners.

Michael regrets the forced departure from Russia, as this step has seriously reduced the business. But there was no choice. The company's profit has dropped several times. “Moscow is an amazing place in terms of opportunities for earnings. The gambling business there had phenomenal prospects. Few regions in the world can boast with similar conditions. Alas, this stage is a thing of the past,” commented Michael. At the peak of work in the Russian capital, people won more than $ 2 million, while the institution worked with a profit. In Tbilisi, one of the visitors broke the bank in $ 450 thousand, which is why the month was unprofitable.

 

If you enjoy PWInsider.com you can check out the AD-FREE PWInsider Elite section, which features exclusive audio updates, news, our critically acclaimed podcasts, interviews and more by clicking here!

• Tweet