Much like its famous Volcano brand, Ritzio International has erupted, fast establishing itself as one of the major multinational gaming companies, as Simon Fowles discovers…

Established in 2006, Ritzio International is a multinational company that operates and develops retail and traditional gaming projects in diverse environments. It is part of the Cyprus-based Ritzio Entertainment Group, which started business in 1992.

Now, with tens of thousands of employees and over 25,000 machines in operation, the company has gone from strength to strength. Indeed, since the beginning of 2007 the company has established (via both acquisition and organic development) over 370 gaming clubs located in Europe and a new, upscale casino.

Ritzio’s most famous brand is the Volcano chain of gaming clubs, which the company manages in six European countries. Volcano Gaming Clubs is a popular multinational gaming chain that employs principles of quality mass service and consistent branding. The combination of innovative products, popular game mix, stable service and skilled employees have played a central role in Volcano’s success among clients.

For their guests Volcano clubs provide an attractive gaming experience - satisfying, reassuring, easy, accessible, no-hassle, convenient and fun. By duplicating this gaming format in six countries, Ritzio has become a strong competitor in the European retail gaming market.

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As well as the Volcano clubs, Ritzio has worked on a number of significant other projects. In February, the company opened the premium class Allegre Casino in the city of Medellin, Colombia, which is claimed will be the "country’s most luxury gaming environment" offering the "highest level of service for upscale clientele in the heart of the city."

The 2,600sq.m venue features 490 state-of-the-art gaming machines, utilises cashless technology and 25 tables for blackjack, baccarat, Caribbean Stud and a double zero roulette. Poker players are provided with a poker room, which allows the game to be played on six tables. For premium guests, Allegre offers an opulent VIP lounge to enjoy gaming in an intimate and relaxing atmosphere.

In addition to the main gaming floor the property also provides a performance area with a stage for band concerts, dance and lounge acts entertainment. Two bars, located near the stage and the VIP zone, seat 52 people.

Bally’s Casino is one of the largest and most beautiful casinos in Tallinn, Estonia. Located in the heart of the city, in a 19th century mansion, the facility offers "luxurious and antique furnishings, wooden decorations and golden chandeliers which create an ambience of sensual elegance," says Ritzio.

The casino floor is divided into two zones: the Royal Club, an exclusive members club, and the Fun Casino, with slot machines and table games - roulette, blackjack and four poker games.

Another Ritzio development, the New York, is the third largest casino in Lima, Peru. This full-scale, 2,500sq.m casino features 500 gaming machines and 12 tables spread across two storeys and seven zones. The games portfolio offers a selection of classic reel machines, slots from IGT, Bally, Novomatic and other manufacturers and the latest generation of jackpot systems.

Designed to resemble a ‘60s America, the entrance is crowned with the Statue of Liberty, while its elements are repeated in the main floor interiors.

The casino provides a variety of gaming offerings in seven zones, those including the Ritz salon, VIP and table games zones. The casino’s restaurant is decorated with old American movies posters and creates an intimate and romantic atmosphere. The location is famous for live jazz and Latin-American music performances, themed show programmes and large prizes won by players.

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Today, Ritzio manages around 500 locations spread across 14 countries in Europe and Latin America, comprising Romania, Germany, Italy, Croatia, Czech, Serbia, Ukraine, Belarus, Estonia, Latvia, Lithuania, Bolivia, Peru and Columbia.

The company uses a "full list of suppliers including almost all leading manufacturers of gaming equipment," it says, though recently it has been purchasing machines from Novomatic, WMS, IGT, Aristocrat, Alfastreet, Gold Club and Konami.

The successful implementation of Ritzio’s business strategy sees it continually adapt to meet the requirements of a variety of markets. "Since the company operates in so many diverse environments," explains Ritzio’s president Oleg Boyko, "Ritzio has been developing in rather different street markets. Business attractiveness and risk minimisation are two key factors which the company uses while evaluating its prospects and current position in the market."

The company confirms that the liberalisation of the German gaming law in 2006 gave Ritzio an opportunity to enter the market with an accessible and profitable format, which did not look that attractive before. Today an average Vulkan Stern club is a 150sq.m location with 16 AWP machines, internet terminals and a bar.

There are several 24-48 machine gaming clubs, mostly located in Berlin and Bavaria. Some clubs offer guests additional services, such as amusement machines and billiards. With its modern, cosy gaming clubs, located in the cities of Berlin and Hamburg and numerous towns across Germany, Ritzio has become one of the top five gaming club operators in the country.

Similarly, in Czech, the company was quick to react to - and take advantage of - the increasing popularity of VLT machines. It is experienced enough to know that small to medium-sized locations work well in Europe, while its Latin American properties resemble classic Las Vegas-style casinos and large entertainment centres.

Ritzio’s managers watch out for market liberalisation and the introduction of new types of equipment (e.g. VLTs). "The peculiarity of the gaming market in general is that it changes all the time. Some countries become more liberal towards gaming, others introduce different instruments (like raising a gaming tax) which make this business less attractive. It is an ever-changing story."

What then, does Ritzio believe to have been its most significant achievements thus far?

Ritzio believes its success is based on long-term experience, strong branding, services quality and the leading position in the gaming retail sector. The company chooses to use one popular brand that can be adjusted to the specifics of gaming operations in one country (whenever it is applicable).

Working in a number of different markets often results in fresh challenges being faced. Equally, different types of product work better in some countries than others.

"In Czech, for instance, we observe a growing popularity of VLT machines, while Croatian players are fond of slot games. In Bolivia the core of our operations are bingo machines, while in Colombia we feature equipment typical for a large casino. All markets are different; in some countries our games mix consists of AWP machines, in others it is slot machines and electronic roulettes.

"There is no universal formula for all countries. Speaking of the slot products, though, we observe Novomatic games perform very well in our operations in many countries."

With the proliferation of multigame machines, report Ritzio’s managers, players are tending to pick them over single units. Cashless systems too are becoming more popular in Ritzio’s casinos and large gaming centres, particularly in Ukraine, Colombia, Peru and Romania.

As the global economic squeeze continues to grip, it will naturally have filtered into at least some of the markets Ritzio - and indeed most other operators - is active in.

"We are starting to experience a five to 15 per cent decline in our revenues, but we are also observing the facilities’ rental prices going down and our own operational costs reducing. We are expecting the revenues to return to standard in a three-month period."

With equal importance placed on all markets, Ritzio adopts a sensibly cautious approach to different markets. "Less regulated markets have easier entry rules, attract more operators and therefore become more competitive. Established markets with tougher regulations are more stable but entry conditions may be tougher."

However, the most successful markets for Ritzio are those where (1) the company has achieved a leading position and has been operating for quite a long time (for example, Ukraine) and (2) those that provide a less competitive environment (e.g. Belarus), and those which are attractive in terms of today’s euro currency stability (e.g. Germany).

In the immediate future, Ritzio will seek to consolidate its position in the markets it is already strong in. "We are following a conservative plan for 2009," confirms Boyko. "Ritzio will continue to develop in those countries where the company has already established itself.

"We plan to open several gaming clubs in Germany and Romania, those including acquired-and-then-rebranded premises, and new venues. We have just launched a large casino project in Colombia and we’ll be searching for more opportunities."