Shangri La, a luxury casino brand managed by Storm International, has been a key player in Georgia’s gaming industry. Known for its high-end services and elegant atmosphere, Shangri La has long attracted international players. However, recent tax changes have created challenges. The company is now focused on finding innovative ways to retain foreign patrons and grow in a competitive market.
The Importance of Foreign Players
Foreign visitors are the backbone of Georgian casinos. They account for 90-95% of the revenue at Shangri La. Darren Keane, Storm International CEO, highlights their critical role: “Without foreign players, casinos in Georgia cannot survive.” These high-stakes guests bring more than gaming revenue. They also support hotels, restaurants, and other local businesses.
The Challenge of the 5% Cash-Out Tax
A new 5% cash-out tax is pushing players away. This tax applies to the total amount withdrawn by players, not just their winnings. High rollers feel penalized even when they lose money. Many are now choosing destinations like Armenia or Cyprus, where such taxes do not exist.
Keane explains the impact: “This tax is driving players to other countries. We see a drop in foreign visitors across all locations.”
The absence of these players has a ripple effect. Local businesses that depend on gaming tourism are struggling. The challenge for Shangri La is to adapt and remain competitive despite these hurdles.
Shangri La’s Strategy for Retention
Shangri La focuses on delivering an exceptional experience to its guests. The brand combines luxury with personalized service. This approach keeps many players returning despite the new tax.
The casino’s team understands the needs of international visitors. VIP services, luxury accommodations, and exclusive gaming areas create a sense of prestige. Guests feel valued and appreciated.
To stay ahead, Shangri La is also investing in entertainment. Fine dining, live performances, and special events attract a broader audience. The casino’s strategy is to offer more than gaming, creating a holistic luxury experience.
Adapting to Challenges
Innovation is key to overcoming challenges. Shangri La uses data to understand its players better. By analyzing preferences, the team tailors offers and services to meet specific needs. This personal touch sets the brand apart.
The casino is also enhancing partnerships with the hospitality sector. Special packages that include hotel stays, spa services, and dining experiences provide extra value for guests. These partnerships strengthen the appeal of Shangri La as a destination.
Collaborating with Policymakers
Shangri La is actively engaging with the government to address industry concerns. The casino advocates for balanced tax policies that attract foreign players while supporting local development.
Darren Keane from Shangri La believes reform is necessary for growth. While taxes are essential for the economy, they must not deter international visitors. Shangri La is committed to working with regulators to find sustainable solutions.
Looking Ahead
Despite the challenges, Shangri La remains optimistic. The brand’s commitment to quality and innovation keeps it at the forefront of Georgia’s gaming industry. By focusing on guest satisfaction and adapting to changes, Shangri La is paving the way for future success.
Georgia’s casino industry has significant potential. With strategic efforts, Shangri La aims to retain its position as a leader. The company believes that collaboration, innovation, and a guest-first approach will ensure growth in the years to come.