Storm International Holding operates according to a well-established scheme: some of the investments are attracted to local businessmen, and Storm International acts as a managing partner. For example, in the Georgian Shangri La, said the company CEO, Darren Keane, Storm International share is 75%.
The casino started earning profit in Georgia only from the third year, on the average, the company is guided by a payback period of five years. The operating margin is 10-20%. Licensing fees and taxes account for about 40% of this amount, another 20% fall on advertising and marketing.
An essential part of the marketing budget is the prize funds of lotteries and promotions, as well as the so-called junket tours. In gambling tours, players deposit a certain amount of money to the game, which includes free flight, food and accommodation.
Sometimes players abuse hospitality, which causes casino losses. It happens when the company comes from three to four people, each invests $ 10,000 for the game. When such guests play at the same table with a common strategy, they play along with each other, theoretically increasing the chances to beat the casino or stay with their own. These are the so-called business players who come not for rest, but for work. The casino tries to keep track of such schemes.
The casino gets an average of 20% of the money involved in the game. In this case, slot machines in Shangri La are configured in such a way that in the long run they give players 95-98% of the money. Some people are often lucky to break a big jackpot.
However, despite the successes in Tbilisi, Yerevan, Minsk and Riga, Storm International's business declined after leaving Russia. Moscow was an amazing place. There are few cities in the world where gambling can have such a good perspective and profitability. The difference can be illustrated with the help of numbers. For example, a real visitor won several hundred thousand dollars in a casino in Tbilisi, so the month will be unprofitable for the whole unit. At the same time, in an interview recalled Darren Keane, Shangri La in Russia the winnings could have been payed out easily; they could reach up to two million dollars.