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 Michael Boettcher:
“I’m ready to give up a half of the business for the sake of “Responsible Gaming”
(A translation from Russian)
The legendary owner of a casino network Michael Boettcher is giving such a frank interview to the media for the first time. In his whole life Michael lost everything three times, and thrice created his “empire” almost from scratch. In his exclusive interview to the “Mir Novostei” [World of News] he is commenting on the new Russian legislation in a really unexpected way.
The famous Briton comments on Federal Law “On gaming business of the Russian Federation”
- You came to Russia in 1992. What was the most interesting, maybe surprising for you in this country?
- At first there were lots of problems. I am an Englishman and have been traveling around the world since I was 22. I lived and worked in various countries around the world and saw various cultures. And then I was challenged by my destiny: to go to Russia. It was quite difficult but it was the greatest deed I had ever attempted. There was an impression that the development in Russia stopped in 1917, and it went on again 70 years after but no one had a clear vision of what should be done and how. I observed the history being made, fancy how happy I was.
- After “Kings”, one of the first casinos in Russia, proved to be successful, which was quite unexpected for many people, why did your partners think it unprofitable to keep the business going in this country, and what made you stay here?
- I saw great prospects in Russia. Unfortunately my partners of that time did not understand it, they were afraid of some changes and tried to take the earned money of the country as fast as possible. Actually, they were rather my employers not my partners. And one day I got a chance to go on with the business on my own, and I took advantage of it.
- Due to your Russian partners?
- Yes, all was done thanks to the Russian partners. But at that time none of them understood how the gaming business should be managed. Some of them realized that this industry had a future in this country but at that moment only a few understood how the gaming business should be developed. To start the company operations, many Russian businessmen would hire a foreign manager, and once the operations were established, they said good-bye to the foreigner. In most cases the company would break in several months or a year as no one could manage it properly.
- Are there any development prospects for your company in Russia today? After the new law was passed, are you going to stay here or forward your investments abroad?
- We have already begun developing the business abroad, where the attitude to the gaming industry is reasonable, but I would really like to stay in Russia. Apart from “Super Slots”, we operate five casinos here, and we have our vision how the business should be developed now. It is obvious that the law which was passed early in 2007, in its main part providing for the relocation of the gaming business to special gaming zones, does not work. I have not been to any of these zones yet, and I am not going to. As I know, the major representatives of the gaming business share this viewpoint.
- Do you consider this state project hopeless?
- Absolutely. You understand that the business is connected with the place where it is located. Certainly, you won’t see any “Yves Saint Laurent” boutiques in Omsk suburbs or “Chanel” in Altay. In addition, even the borders of these zones have not been clearly determined yet, and I have no idea of where exactly they will be located, what land plots they will occupy. What about technical and marketing research? Even if we were interested, in theory, in relocating the business to one of these zones, the timeframes set by the state are completely unreal. We have submitted several proposals to the Duma and expressed our opinion on the matter.
- Can you be more detailed about the legislative initiatives you have submitted?
- First of all, it is pointless and unreasonable to relocate the gaming business to the zone. I have suggested making a committee which will research the Russian gaming business compared to the western one. It also needs consulting with gaming business representatives to understand the real situation and the current burning problems. Then, it needs closing all slot halls and setting laws, standards and requirements corresponding to the world level. The perfect option is to have one casino per 500 thousand inhabitants in big cities. The casinos should be located at 4-5-star hotels built by the same operators. Therefore it needs allotting enough time for such properties to be built. Taxes should be raised. All the gaming staff licensed. The owners should be licensed in terms of their legality as the business owners. No advertising. The age quota for visitors should be increased up to 21, the entrance fee should be charged, which will be spent for “Responsible Gaming” programs. A special 5% tax should be set, to serve specific social needs.
- Have you received any response to your legislative initiatives?
- Not a public one, but, no doubt, there are a lot of sensible people who support them.
- And what kind of future do you think the gaming business in Russia will have after the casinos in all big cities are closed?
- People gamble all over the world, about 10% of them. And the majority of these 10 per cent will gamble anyway, whether gambling is legal or not. If all casinos are closed in large administrative centres, where people have disposable income, it will results in casinos falling back into the shadow as it has been happening around the world. Criminal groups will get involved at once, money laundering will start, taxes won’t be paid, players and common staff will turn to be unprotected… When I began working in the industry in 1972, the business was legal only in five countries of Europe, and now as many as 37. Russia is one of the few countries where the gaming business development is walking backwards. Sadly, they like repeating other states’ mistakes here.
- Will you tell us, Michael, if other players in the market share your opinion?
- It is a fact regardless of what they think. Gambling is prohibited in Turkey, while there are 90 illegal casinos in Istanbul. Illegal gambling will always be found where legal one does not exist. Each European country has legal gaming business in the form of casinos. It is controlled and regulated, which brings profits.
- Your company has taken on „Responsible Gaming“ program. What restrictions does this program imply and how is its performance controlled?
- It was my idea voiced even before any legislative initiatives took place in Russia. “Responsible Gaming” program includes a number of requirements and restrictions which refer to casino staff and operators and to advertisement; besides, it implies psychological and social support for gambling addicts. In all our properties we distribute collaterals warning against gambling-related risks and advising on the proper attitude to gambling so that these risks could be avoided. In addition, we have a hotline telephone number and a centre of psychological aid financed by us, where you can get a relevant consultation or a psychologist’s help. It is not only dealing with gambling addiction but also informing the society on pluses and minuses, risks and benefits, working with the staff for them to be able to recognize gambling addicts at earlier stages. It is a regular tendency for civilized countries.
- It is not profitable for casinos, is it?
- It has nothing to do with profit. First of all it is related to responsibility. I do not want to see people who get addicted and lose all their money. In my recommendations I suggested closing all slot halls. I am ready to give up a half of my business because I do not want to urge people to gamble, to make them involved. Our company gives a chance to gamble to those who want it. I even agree with the opinion that advertising must be banned completely. It was our own idea to raise the age quota for visitors of our properties to 21. This program was offered to all other market competitors. But at the moment only “Metelitsa”’s level of responsibility is high enough to have joined our program.
- You represent a large chain of casinos. What is your vision of your casino customers, what kind of people do you think they are?
- Well, their image has certainly changed in the course of time. At first they were mainly representatives of criminal structures, including the militia; there were people who stole money. But everything has changed by now: we are observing the growth of the middle class in Russia, and quite a lot of its representatives spend their leisure time with us. It is obvious that the problems that used to be common with the customers over the period of the industry formation can be hardly expected now. Now a regular customer of our casinos is a person whose income is average or above average, having free cash to be spent for high quality leisure.
- Michael, do you believe it is necessary to invest more in the positive PR of the gaming business in Russia so that a positive image of these operations could be created?
- Our task is to make people understand the fact that gambling exists and has to be dealt with. If gambling is regulated properly, then the negative consequences you can so often hear about will be reduced to the minimum, and the community will get considerable benefits.
- And the last question. Did any funny events occur to you in connection with the beginning of your work in Russia?
- Funny things happen every day. Russia is a funny country, upon the whole! I had the funniest occasion in early 90-s. When I was organizing “Kings” casino operations, I needed locks for the staff’s personal lockers. At that time all the locks available were manufactured in Russia, but anyway it was not that easy to find them offered in shops. When I came to buy locks, they told me there were none available but probably there would be some in a week. In six weeks our order was eventually brought to us. I was so happy about it! On surveying the received goods I found out that there were no keys. I asked “Where are the keys?”, and they gave me a box with all the keys pell-mell. I was surprised: “How can I find the proper key for each of the forty locks?”, the supplier gave me a quizzical glance and said: “Why should you do it, they are all the same!”. It took me a long time to understand what is the point in the locks with the identical keys? Then I had to order locks abroad. And I faced similar ludicrous situations quite often.
Alexey Safronov
Elena Kudashkina
Source: "Mir Novostei" Newspaper, ¹47(725)
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