Shota Amiranashvili, President of Association of casinos in Adjara on Launching of the Gambling Season in Batumi

Georgian government authorized operations of Adjara gambling venues from March 1, 2021, after the longstanding epidemiological restrictions. One month later, on April 1, Tbilisi casinos resumed their activities.

As part of UGW Insider podcast, Ukrainian Gaming Week 2021 Brand Ambassador Lavrentiy Gubin talked to the President of Association of casinos in Adjara Shota Amiranashvili about how painful it was for Batumi casinos to get out of quarantine and whether Georgian gambling establishments are afraid of competition from the Ukrainian market.

The interviewer: Lavrentiy Gubin (L.G.)

The respondent: Shota Amiranashvili (S.A.)

L.G.: Shota, the first question to you is how difficult was it to open up after the pandemic, during the pandemic, one might say, and find the staff?

S.A.: As you know, we were allowed to launch on March 1 in Adjara. Earlier than in Tbilisi (one month exactly). And of course, at that moment there were a lot of unknown factors. Therefore, not many venues decided to open up. Because the borders were closed, there were practically no flights.

And it didn't make sense to work for local players. And only one casino opened, which, basically, was ready to launch just a few days before the casino shutdown last year.

They took a chance and opened up, they decided to make a test run, and, generally, they did the right thing, I think. After that, the second casino was already opened in 20 days.

And at the same moment, flights began to recover slowly, especially from Israel, and it already made sense, to start operations. As for the staff, generally...

For casinos that opened at the beginning, there was no problem.

Because all the staff that remained in Batumi, Georgia, in many casinos before the pandemic, most of them worked in different areas, and they returned to their jobs.

But for those casinos that decided to open later, the staff issue was much more acute. A lot of staff went abroad during this period. Many people found some other job and decided to stay there.

And didn’t return to the gambling business. There is a problem, especially with the live-game staff, experienced dealers. There are, of course, problems, but it’s much better than it was at the beginning.

L.G.: How do you evaluate this season, especially when compared to past non-pandemic seasons? How did it start? How is it going now?

S.A.: When we made the decision to launch, we had a minimum goal – at least covering the costs.

All casinos made a decision here at the first stage, since there were many unknown factors, to cut wages by 30% for all staff and see what happens after the opening. And to decide in real time whether those previous salaries would be restored.

On the example of our casino in Sheraton, I can say that all these results (attendance, etc.) have exceeded all expectations at the moment. I can honestly say that I don’t remember such an influx of guests, such a level of play, probably since 2015.

But this is mainly due to players from Israel and players from Arab countries. Since we have direct flights now. 5-6 planes a day from Israel and practically every day from the Arab countries. This is mainly Saudi Arabia and Kuwait – very good players fly here.

This applies to all casinos in Batumi. At the moment, all casinos have very good traffic, great games. And I hope everyone has great results too.

Of course, there is a shortage of players on the Turkish side. Because, unfortunately, our land border is open, but at the moment it works only until from 10 am to 8 pm.

L.G.: And what about the countries of the former USSR? Traditionally, they traveled a lot to Batumi, what is the trend now?

S.A.: Currently we have direct flights from Minsk, from many cities of Ukraine, Kazakhstan, and even Uzbekistan launched flights. But, in reality, as for us, I could say that we don’t feel their presence in the casino significantly. There's no such thing. And we never did.

Because tourists from these countries, even Ukraine, Belarus (Kazakhstan is better) – that is not the segment of tourists and not the level of tourists who are ready to spend some amounts in a casino. They come here purely to relax with their family at sea and the like.

L.G.: A legal Ukrainian market has opened this year. Do you think Ukraine will be a serious competitor to Georgia in the fight for junket players?

S.A.: As I noted, we were previously focused on the Turkish market and players. More even, Batumi was focused on Turkey – only a part of the Black Sea coast.

In this respect, we did not compete strongly with Northern Cyprus that takes the other part entirely, right? That concentrates on that part of Turkey. I do not think that we will lose anything in this segment.

Because those players who come to us are at a distance of two, 2.5-3 hours of car drive, if you like. Plus, for them, I don't think there will be direct flights, or frequent direct flights from the Black Sea part of Turkey directly to Ukraine, for example.

Therefore, in this regard, I do not expect any kind of customer churn. Yes, of course, some of them will definitely go, look, like it. Because there are also big advantages in Ukraine compared to Batumi. Batumi, firstly, is a very small city in comparison with Kyiv and Odesa, etc.

Plus, the nightlife, some entertainment related to gambling business is much better developed there. But, again, there are those factors... In particular, the Turks are very sensitive in this regard, as for safety, comfort, etc.

Plus, of course, you know that here in all casinos there is a Turkish-speaking management, the staff speaks Turkish – this is a great comfort for them.

As for the players from Israel, there is one point. The Israelis are somewhat different. But let's not forget the flight time – very important for the junket. We are very close to Israel, 1:40, two hours maximum flight here.

Ukraine is already much further. And this is already uncomfortable. When there is a closer place and Batumi suits for you, they really like it here, right? Why do you need to go somewhere further? There is this thing.

Yes, again, for some part this is probably okay. But not for all and not so that everyone rushes there, I don’t think so. Again, for a junket, I think basically the maximum flight duration is a maximum of three hours.

This is the greatest comfort. More time is already a discomfort. There’s this point. Of course, over time, the Ukrainian market will probably develop as well. There are not many alternatives now.

There, they will adjust to the Turks as well, maybe to Israelis, to Chinese. And yes, they will start flying. But at this stage, I do not see any big risks for the Batumi market.

---

To learn more information on casino operations after the quarantine restrictions, watch other episodes of UGW Insider podcast.