The Ritzio Entertainment Group, a Russian gaming company announced that it had raised $45 million as a one-year loan from Dresdner Bank AG, subsequently bought by Moscow-based MDM Bank and sold on as bonds. The bonds were mostly bought by Western investors, over half by British and American investors. The proceeds of the sale will be used to pay off Ritzio’s debt, maturing next year, and to purchase more slot machines.

With a population approaching 150 million, Russia is still sparsely populated in relation to its immense area. Most people live in the European part of the country, 14 million in Moscow, and gambling is booming. It is estimated that the Russian capital already contains about 48,000 slot machines in gambling halls and arcades, nearly half supplied by Russian manufacturers. The gaming industry at present employs over 500,000.

Other areas of Russia, such as Kazakhstan and the Ukraine, are seeing expanding gaming markets. Foreign companies already make Russian versions of popular games and some new games to attract Russian players. There is a problem of counterfeiting for foreign companies, but the strength of the market is sufficient to keep them in the country and looking to expand their presence.

The present easy to obtain and cheap gaming licences may soon be a thing of the past. Russian authorities are considering tightening gaming regulations and increasing gaming taxes substantially, so the proliferation of slot machines in arcades may cease. In the meantime, gaming companies such as Ritzio are seen as a good bet.

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