From Change to Mindset: Why it’s about more than just Transformation

Ulli Schmitt
ISA-GUIDE Inhaber
E-Mail: ulli@isa-guide.de


What began as a structural change has long since evolved into one of the most profound upheavals in the German casino landscape.

David Schnabel, Board member MERKUR Casinos (Photo: Merkur Group)
David Schnabel, Board member MERKUR Casinos (Photo: Merkur Group)
Over the past few months, the ISA-GUIDE series has shown, step by step, how former state-run establishments have become modern, entrepreneurially managed casinos. It was about investments, new structures, and speed in decision-making—but above all, it was about people. About teams that helped drive this change. About leaders who are shaping it on the ground. And about a new vision of what a casino can be today: a destination for experiences, an employer, and a socially responsible stakeholder all at once.

Yet despite the diversity of perspectives, one thing is clear: this transformation is not the result of a single measure. It is the result of a clear stance—and a strategic decision that extends far beyond individual locations.

Many of these developments converge at a central point: David Schnabel. As a member of the Executive Board and the driving force behind the casino division within the Merkur Group, he embodies the vision behind the transformation—and the question of how change can lead to sustainable development.

In doing so, Schnabel combines two perspectives that are rare in this form: experience from publicly managed structures and the consistently entrepreneurial perspective of a private-sector group. This combination shapes the path Merkur has taken since acquiring the casinos—from securing jobs and targeted investments to developing modern management and operational concepts. And it simultaneously forms the foundation not only for further developing the casino business nationally, but also for thinking and positioning it internationally in the long term.

The previous articles have shown how this transformation was implemented. The following conversation goes a step further—and explores the motivations, guiding principles, and direction.

In the concluding interview of this series, David Schnabel discusses his entry into the casino business, responsibility toward employees, guests, and society, as well as the strategic guidelines for the further development of casinos—in Germany, Europe, and beyond.

A conversation about more than transformation. A conversation about direction.

ISA-GUIDE: Mr. Schnabel, when you look back on your career in the gaming industry so far: Was there a moment or a phase that particularly shaped you?

David Schnabel: For me, there isn’t a single moment that shaped everything. It’s more of a development that has unfolded over many years. What has accompanied me since my very first day on the job, however, is a special fascination with the casino business.

I still remember my first day on the job very well—November 2, 1991, at the Hohensyburg Casino. I was immediately captivated by that special atmosphere: the interaction between people, the stylish ambiance, the excitement at the gaming tables, the soft chime of the slot machines, conversations at the bars and in the restaurants. And above it all was that special moment that defines casinos: the mix of hope, thrills, and the uncertainty of how an evening will unfold. That fascination has never left me since.

What has been particularly formative for me is interacting with people—with guests as well as with the teams on the floor and in administration. This leads to many experiences, both positive and challenging, that shape you over the years.

I am grateful for the opportunities that WestSpiel and later the MERKUR Group have given me. It fills me with pride to see what we have been able to achieve together over the past years. When I look back today, it is precisely these many experiences that have shaped me not only professionally but also personally.

ISA-GUIDE: You have been active in various roles in the industry for many years. Has your view of the casino business changed over time?

David Schnabel: Yes, of course my view of the casino business has changed over time—if only because the industry itself has been continuously evolving.

At the same time, this is closely tied to my own professional journey. My tasks and areas of responsibility have changed repeatedly over the years, and I’ve been very fortunate to gain insights into virtually all casino-related areas. In doing so, I was not only able to familiarize myself with processes and structures, but also to actively help shape them in many areas.

These shifts in perspective have significantly broadened my view—moving away from individual operational issues toward a more comprehensive understanding of the casino system as a whole.

What has never changed, however, is my fascination with the game itself and, above all, with the people who make up this business.

ISA-GUIDE: How important is it to you personally to be regularly present on-site at the casinos and to seek direct interaction with the teams?

David Schnabel: Direct contact with guests as well as with colleagues on-site is very important to me. Only when you’re close to the action can you truly understand what matters to people and what is actually relevant in their daily lives.

I also personally enjoy being at the casinos—striking up conversations, listening, and taking different perspectives on board. It’s important to me to be present and accessible as a point of contact. Because these conversations often yield valuable insights that help us better understand the bigger picture and continuously refine our offerings and concepts.

For me, being present is also a matter of appreciation. Our colleagues do outstanding work day after day in shift work—including evenings, weekends, and holidays—often with extraordinary dedication and a lot of passion. That’s why it’s important to me to sometimes be on-site during these times as well.

However, I don’t always manage to do this in my daily routine to the extent I would like. That makes it all the more important for me to make the most of the opportunities that arise.

ISA-GUIDE: Casinos also thrive on special, sometimes unusual moments. Is there an experience from your time in the casino world that has stayed with you to this day?

David Schnabel: It’s not the big, spectacular events that have stayed with me the most. Rather, it’s the many small, often very personal moments that make this industry so special.

These are encounters with colleagues with whom you’ve worked for many years, shared successes, and supported one another even in difficult situations. They also include guests who have been with you for a long time and with whom a special connection develops. Of course, there are also extraordinary experiences that you probably only have in the casino world. I remember, for example, a visit by Eros Ramazzotti after a concert at the Westfalenhalle, whom I had the privilege of accompanying for a bit that evening, or Franz Beckenbauer as a guest at a gala, where a personal exchange also took place. And one moment that certainly stands out: a real tiger at the roulette table, which I was able to witness up close.

At the same time, there have been very different—but no less memorable—moments at MERKUR in recent years: my first conversation with Paul Gauselmann, which was decisive for my future path; the opening of new locations—from Leuna to Magdeburg and Halle all the way to Monheim – and the acquisition of WestSpiel.

In the end, it is precisely this mix of the many personal encounters, formative milestones, and the special, sometimes surprising moments that make this industry so fascinating—and that continue to inspire me to this day.

ISA-GUIDE: When you look back on the Merkur Group’s entry into the casino business: What was the decisive moment for you personally that led you to take this step?

David Schnabel: The fundamental decision to enter the casino business was made even before I joined the MERKUR Group. At the time, Paul Gauselmann had the courage and entrepreneurial vision to expand the existing business into the casino sector.

For me personally, it was a stroke of luck to join the MERKUR Group at exactly that moment—during a phase when the development of casinos in Saxony-Anhalt was just beginning. I was able to contribute my experience and actively help shape this path from the very start. Looking back, entering the casino industry was not only a bold move—it was also absolutely the right one. The casino industry was in a difficult situation at the time, marked by declining visitor numbers and a rather subdued outlook.

Especially in the beginning, many of our colleagues in the industry didn’t take us seriously and laughed at us. No one really believed we could successfully operate casinos. And hardly anyone expected that we could rethink, further develop, and restore the success of the casino entertainment concept.

Today, this picture has changed significantly. Many of the approaches we developed back then can now be found at other locations as well. The fact that we were able to lay the foundation for this development with our first casino in Leuna-Günthersdorf fills me personally with great pride.

Even back then, it was clear to us that we didn’t just want to stabilize this business, but to develop it further in the long term—both nationally and, eventually, internationally.

ISA-GUIDE: The acquisition of the former WestSpiel properties was met with high expectations, but also skepticism. What do you feel has been confirmed—and what might have surprised you yourself?

David Schnabel: I believe this question is best viewed from two perspectives.

On the part of the staff, there was not only skepticism but also, in many cases, great uncertainty. The discussion about a possible privatization had been going on for years, long before the process became concrete. At the same time, the market environment had changed noticeably: guests’ expectations had risen, the range of gaming options had become more diverse—and that was also reflected in the visitor and revenue figures of the WestSpiel Group at the time. Despite various measures to realign the business, the economic situation remained challenging, leading the state to ultimately take the step toward privatization.

For many colleagues, this was linked to very concrete concerns—about their jobs, their financial situation, and their personal futures. Looking back, however, it is clear: these fears did not materialize.

From our perspective, however, it was clear early on that with the experience we had gained in the meantime at various casino companies and our innovative concepts, we could also be successful in North Rhine-Westphalia. Above all, it has been confirmed to me that the casino locations in NRW have great potential and can be successfully developed further.

I was surprised by how quickly the first successes materialized. The courage to tackle things head-on, to think outside the box, and above all to rely on the strength and commitment of our colleagues on the ground paid off very quickly.

And this development is not limited to North Rhine-Westphalia: We are currently seeing a similar trajectory in Lower Saxony as well—which further reinforces our approach.

ISA-GUIDE: You decided early on to retain all employees. Why was this step so important to you—especially given the economic responsibility involved?

David Schnabel: Takeover processes are always sensitive phases—this is especially true in North Rhine-Westphalia and Lower Saxony, where discussions in the run-up were marked by criticism and palpable uncertainty among the workforce.

This made it all the more important for us to send a clear signal early on: Jobs are secure. This was not just about a formal commitment, but above all about fostering trust and stability during a period of upheaval.

It was clear to us from the start that we need the existing teams for successful casino operations. Contrary to what has sometimes been portrayed in public, it was never part of our plan to cut jobs. On the contrary: investing in our employees is part of our corporate identity—supporting them, helping them grow, and retaining them for the long term. There is also a very practical aspect: Our goal is to offer our guests a high-quality experience and excellent service. This is only possible with dedicated, experienced, and warm-hearted colleagues on site.

And since we are convinced that we can attract additional guests with new concepts and offerings, it also quickly became clear to us: We need not only the existing teams but also additional new colleagues in our casinos.

ISA-GUIDE: Trust isn’t built through announcements, but in everyday life. How did you realize that the changes in the casinos were actually being embraced?

David Schnabel: Trust isn’t demonstrated through individual measures, but in our daily interactions. You can tell very quickly whether a change is merely announced—or whether it’s actually being put into practice.

For me, this becomes particularly clear in direct interactions with colleagues. Of course, there are still issues that we discuss intensively—and sometimes controversially—with the workforce and employee representatives. What matters most, however, is how these conversations are conducted: on equal footing and with a shared understanding that we want to continuously develop our casinos and our concepts.

At the same time, the transformation is also evident in concrete developments—in economic performance, in the popularity among our guests, and in the positive feedback from on-site employees.

If you look at North Rhine-Westphalia, for example: the long-established locations of Duisburg and Hohensyburg have clearly re-established themselves among the top tier of German casinos. The development in Monheim is also particularly noteworthy, where we succeeded in establishing a new casino among the top 5 German casinos in a very short time.

It is precisely this combination of active collaboration and measurable success that shows me that the transformation is truly being embraced within the casinos.

ISA-GUIDE: You are familiar with both publicly run casino structures and corporate responsibility. Where do you see the biggest differences—and perhaps also similarities?

David Schnabel: I am convinced that there should be no difference in the fundamental orientation of casinos between state and private operators. We all pursue the same goal: to offer our guests an exciting and entertaining, yet safe leisure experience—within the clear framework of legal requirements. The state mandate to offer gambling fairly and responsibly applies equally to everyone.

I see differences in the way this is implemented. Private operators are often more agile and also more daring when it comes to further developing offerings or breaking new ground.

For example, we have benefited from being able to pool different areas of expertise within our corporate group. This has enabled us to rethink casino concepts in many areas, but also to revisit proven elements that were previously successful and develop them further in a contemporary way.

For me, the key point here is this: casinos must not define themselves solely through gaming. Today, our guests expect a holistic experience—attractive and contemporary gaming offerings combined with atmosphere, high-quality dining, events, and above all, warm service.

To achieve this, we need the right products, strong concepts, and above all, dedicated colleagues. And it requires a willingness to invest—in the locations, in the offerings, and especially in the people.

Because ultimately, this is true: Those who lose focus on their employees and look exclusively at short-term revenue maximization will not succeed in the long run.

ISA-GUIDE: The modernization of the casinos went far beyond technical necessities. What role does the question of what a casino should stand for today play for you in this context?

David Schnabel: I actually consider that to be the central question—not only with regard to our guests, but also to our colleagues at the locations and in administration.

On the one hand, we must understand very clearly what our guests expect today. This applies both to the gaming offerings and to the overall entertainment experience. Trends change, expectations rise—and we must respond by developing new ideas and continuously refining our offerings. Or, in the words of Friedrich Schiller: Those who do not move with the times will be left behind.

But looking inward is just as important. The expectations of our employees have also changed significantly in recent years. They want to be part of the company, not just fulfill a role. Issues such as appreciation, good working conditions, and attractive employment terms are playing an increasingly important role.

We have worked intensively on both of these areas in recent years—and will continue to do so consistently in the future. Because a casino can only be successful in the long term if we both delight our guests and provide our colleagues with a good working environment.

ISA-GUIDE: Casinos are always caught between the conflicting demands of economic success and social responsibility. How do you define this balancing act?

David Schnabel: I wouldn’t call it a balancing act at all—it’s our day-to-day business.

Gambling is generally prohibited in Germany and permitted only under strict government regulations. With their license, casinos have the clear responsibility to provide these services in a safe, fair, and regulated manner. We are always mindful of this responsibility.

For us, this means: The legal minimum requirements are a given—but they are merely the foundation. We consciously go beyond them. For example, back in 2014, we were the first casino operator in Europe to introduce external player protection certification. Today, this is standard practice at many venues.

In addition, we have our own Player Protection Commission with external experts, player protection officers at all locations, and a central department dedicated exclusively to this issue. At the same time, we prioritize transparency—through training and raising awareness among our employees, as well as through open communication with our guests and an annual report on our player protection measures.

Ultimately, it comes down to a clear stance: We offer entertainment—reputable, safe, and responsible. And that is precisely the foundation for sustainable economic success.

ISA-GUIDE: You give the on-site casino directors a great deal of responsibility. What do you expect in return from the managers at the venues?

David Schnabel: Our casino directors serve as a crucial link—between management and our colleagues at the locations.

I expect them to clearly communicate our strategic direction and adapt it to the specific characteristics of their respective locations. But the other direction is just as important to me: they should take in the interests, concerns, and needs of the staff and relay them back to us.

Furthermore, they are responsible for ensuring that processes and procedures are reliably implemented and that operational standards are maintained. And they are the face of the casino in their city or region—both internally and externally.

What matters most to me is that they truly understand their location, recognize its strengths, and continuously develop it together with us.

Above all, our managers should be one thing—convincing hosts—and with this attitude, they should also serve as role models for every single employee.

ISA-GUIDE: With the acquisition of the casinos in Lower Saxony, Merkur is now also operationally responsible there. Almost simultaneously, collective bargaining negotiations have also begun there. How do you generally approach such processes, especially during a transition phase?

David Schnabel: The takeover of the casinos in Lower Saxony in July 2025 was, for us, first and foremost one thing: a shared starting point. Similar to what we did previously in North Rhine-Westphalia, we invited all employees to a multi-day get-to-know-you event in Espelkamp at our training center at Benkhausen Castle.

It was important to us that our colleagues get to know the MERKUR Group, the key players, and above all, the future prospects. From the very beginning, we communicated openly and transparently that things would change—in the range of games offered, in processes and procedures, but also in how we work together. This clarity, combined with job security and a clear commitment to the workforce, quickly built the necessary trust.

Collective bargaining is not a unique issue for Lower Saxony, but is something we deal with on a regular basis—currently, for example, in North Rhine-Westphalia as well. What matters is how such processes are structured: it’s about fair cooperation and sustainable solutions. In Lower Saxony, we succeeded in reaching a swift and mutually fair agreement as early as the first round of collective bargaining following the takeover. This demonstrates that constructive solutions are possible even during a transition phase.

At the same time, collective bargaining is one of the most challenging issues there is. I have great respect for the work of the bargaining committees and for the fact that colleagues advocate for the interests of the workforce. What I hope for here is a shared understanding of the respective operating conditions of the individual casino companies. Solutions must fit the specific situation and take economic realities into account.

In recent years, we have been able to achieve tangible improvements for our colleagues in our casinos—including in existing collective bargaining agreements. These adjustments were appropriate and necessary to address existing disparities and catch up with developments.

Furthermore, we must keep the economic stability of the casino companies in mind. We stand for fair wages—but solutions must always be sustainable. Excessive demands can jeopardize the economic foundation and, in the long term, also jobs.

And even though casinos in Germany have developed very positively in recent years, we must prepare for more challenging times. The global political situation is tense, and regulatory changes—such as the introduction of a cash limit starting in mid-2027—will have a noticeable impact on casino operations.

That is why we need balanced agreements with a realistic view of the future—to secure jobs, fair wages, and economically stable casino operations in the long term.

It is important to me to always view casino operations as a whole. Ultimately, we will only be successful if we think and act together—beyond individual departments.

ISA-GUIDE: Employees in Lower Saxony supported the change in ownership and ensured ongoing operations. In your view, how important are fair working conditions for the long-term development of casinos?

David Schnabel: Fair working conditions are a key prerequisite for the long-term development of our casinos. Because only when the framework conditions are right can and will our colleagues deliver what defines our establishments: being hosts with heart.

Especially in Lower Saxony, we are currently undergoing a comprehensive realignment of our locations. This is not just about game offerings or concepts, but also, and quite significantly, about working conditions. However, this is not a process that can be implemented overnight—especially not when multiple locations are being developed at the same time and issues such as compensation, working hours, or benefits are closely linked to ongoing collective bargaining processes.

I myself worked for many years in shift and rotating work schedules and know from personal experience how crucial reliable and fair working conditions are. At the same time, however, it is not just about the current situation, but also about future prospects: opportunities for development, support, and the chance to contribute in the long term play an equally important role.

Ultimately, one thing is very clear to me: We can only be successful if we have strong and committed colleagues by our side—and to achieve that, we must create the right conditions.

We are extremely grateful for how openly the workforce in Lower Saxony is helping to shape these changes. In our view, clear and sincere communication is a crucial key to successfully continuing on this shared path.

ISA-GUIDE: What is personally important to you in ensuring that employees in Lower Saxony feel well taken care of in the long term under the Merkur Group umbrella?

David Schnabel: I’d like to broaden the answer a bit: It’s important to me that all colleagues feel well taken care of here—regardless of whether they work in Lower Saxony, North Rhine-Westphalia, Saxony-Anhalt, Berlin, Rhineland-Palatinate, the United Kingdom, on our ships or at our headquarters in Espelkamp.

In recent years, we have demonstrated that we can continuously develop our casinos—technologically, through our gaming and dining concepts, but above all with a focus on the people in our venues.

It is precisely this growth that has opened up new opportunities for many colleagues: new roles in other federal states, participation in international projects, or the development and implementation of new systems and game concepts. These opportunities are an essential part of what defines us as a group.

At the same time, safety and reliability are always paramount. Development can only succeed if the foundation is solid and people know they are part of this journey for the long term. I am proud of what we have already achieved together, and above all of the people at MERKUR casinos. The trend is very positive, no question—but we are still a long way from our goal.

ISA-GUIDE: Discussions about the future of state-run casinos are also taking place in other federal states. Do you view these developments more from a business perspective or primarily as an industry trend?

David Schnabel: I am convinced that Germany will continue to have a mix of state-run and private casino operators in the future.

Every state faces the fundamental question of whether a business model like the casino industry is better managed by the state—or whether a private-sector approach offers advantages. This also concerns the role of the state itself: whether it wants to act as both operator and regulator, or focus more on its regulatory function.

North Rhine-Westphalia opted for privatization in 2021. In my view, that was the right decision—both for the locations and for the employees, as well as for the further development of the offerings.

We are currently seeing similar discussions in other federal states, such as Schleswig-Holstein. It is striking that certain patterns of argumentation are repeating themselves: Concerns are frequently expressed that jobs will be lost, collective bargaining agreements will deteriorate, existing rights will be called into question, or that traditional table games will be pushed aside in favor of slot machines.

The fact is: these fears have not materialized in practice. In the casinos we have taken over, we have secured jobs and created additional ones, developed new locations, introduced employee benefits, and further developed collective bargaining agreements together with the bargaining partners. Classic table games also remain an essential part of our offerings.

This makes it all the more important to evaluate developments in a nuanced manner and based on actual experience.

I myself therefore view such processes primarily from a business perspective. When concrete opportunities arise, we naturally examine them closely and assess whether and in what form an investment makes sense for us. Our experience with past acquisitions demonstrates that we keep the workforce and individual employees firmly in mind throughout this process.

ISA-GUIDE: When you look back on your career so far: Was there an experience or a situation that made it particularly clear to you how important casinos can be for employees or guests?

David Schnabel: It’s not so much a single experience that made this clear to me—rather, it’s a fundamental attitude that has developed over the years.

When interacting with my colleagues, it’s important to me to treat everyone as an equal. I want to be recognized for my competence and trustworthiness—not just because of my position. That’s exactly what I expect from our managers as well. Because that’s the only way to create a work environment where people feel empowered to contribute and take on responsibility.

I take a similar approach when interacting with our guests. They come to us to have a good time—entertainment, excitement, and special moments. Taking this expectation seriously is of particular importance to us.

This is also evident when it comes to player protection. Our approach is not to patronize, but to provide attentive support. We address issues openly when necessary and offer assistance—always with the goal of enabling responsible gaming.

In the end, one thing always becomes clear: casinos thrive on people. Without dedicated colleagues and without guests who place their trust in us, this business simply wouldn’t work.

I am very fortunate to work with many wonderful people who share this mindset. I am grateful for that—as well as for the support within the group and from the founding family, which makes this development possible in the first place.

ISA-GUIDE: Looking ahead: What is your vision for the casinos under the Merkur Group umbrella in the coming years?

David Schnabel: We still have many ideas—and above all, a clear commitment to continuous improvement. This includes further strengthening our existing locations, modernizing them in a targeted manner, and aligning them so that they continue to offer a compelling and contemporary overall experience for our guests in the future.

At the same time, we are consciously looking beyond the German market. We see great potential internationally and are convinced that our concepts and experience can also be successful in other markets. We will consistently pursue this path.

Our team remains a key factor in our success. We will continue to invest strategically in training, development, and clear career prospects. After all, sustainable growth — especially internationally — can only be achieved with strong leaders and dedicated employees who join us on this journey and help shape it.

Our goal is clear: We want to further establish MERKUR casinos as a strong and reliable provider both nationally and internationally and expand our offerings—while actively shaping the future of the industry. To this end, we are consistently evolving our casinos into places that stand for more than just gaming — for experiences, for connections, and for responsible entertainment at the highest level.

ISA-GUIDE: If you could speak directly to the employees at the casinos today: What would you like to say to them?

David Schnabel: I would say thank you—for their dedication, their commitment, and their support. Without them, what we have achieved together would not have been possible.

I hope that we will continue on this path together in the future: as equals, with respect for one another, and with the understanding that different perspectives are part of the picture. We don’t always have to agree—but we should never lose sight of our common goal.

This also means acting with economic responsibility. We must position the casinos in such a way that they are and remain stable and successful in the long term—even beyond the good times. I fully understand my colleagues’ expectations, for example regarding compensation, but we also need solutions that are sustainable for the entire company.

What is particularly important to me: unity. A casino can only be successful as a team. It must not be about pitting individual departments against one another — neither table games against slot machines, nor service departments against administration, nor different generations against one another. Every single department makes an indispensable contribution. Ultimately, we are all working toward the same goal: to delight our guests.

And for me, that also includes a certain degree of self-confidence. We have achieved a great deal together in recent years and made a significant difference for our employees. We can be proud of that—and we should say so.

That is why I urge you: Please get involved, take on responsibility, and let’s continue working together toward a strong future for our casinos.


Did you miss the last article? Read it here: Our interviews with a new generation of leaders

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