Lyubov Loginova, Chairman of the Board of Directors of the Alsart, answered the questions of the largest industry's publication Yogonet.com

1) What's your balance for the first two quarters of 2010?

Alsart doesn’t trade it shares in the equity market, because of unwillingness to publish its balance sheets. However, I can say that the first half of 2010 pleased us - we have got significant growth of alternative gambling spheres of the companies of our Group. This is the projects allowed by law regarding gambling zones of Russia and lottery projects at the federal level, as well as trading and financial betting. And we are very optimistic about the results of 2010. If the situation with the regulation of gambling business in Ukraine and the lottery business in Russia will develop according to our forecasts, the turnover of Alsart will increase by approximately three times by the end of the year.

2) Which are Alsart Group’s expectations and main objectives about the coming months?

Canceling of the ban on gambling in Ukraine is the most important expectation for us. With the opening of legal gambling market Ukraine has all chances to become the Eastern European Las Vegas. Kiev is a one-hour flight from Moscow and has developed entertainment industry it is a place which is always a pleasure to visit. Ukrainian gambling business was estimated at $1, 8 billion before the closing. Now, that figure can significantly grow because of the neighborhood of Russia, where gambling is also banned for almost a year (except for 4 distant and in fact inactive zones).

We assumed that situation’s development a year ago. So diversifying of business we kept both our established business connections with the owners of the closed slot halls and casinos in Ukraine and delivery and technical support infrastructure. Now we are preparing the opening of our sales and operating office in Kiev and intend with our business partners to capture up to 60% of the re-opening the gambling market of Ukraine.

Such plans may seem too ambitious, but we have reasons for that. After a year of ban, the country market in fact empty for legal casinos and slot halls: ex major operators have left the Ukrainian market with heavy losses because of the government actions, a new small operators do not have sufficient experience in the gambling business, they don’t have technology, and there are no adapted spaces. Today not many people in Ukraine understand the real situation, and most important - the willingness and resources for large-scale business development in new conditions. We and our partners have it. We are ready to capture this market.

Also in plans of Alsart for 2010: projects in the gambling zones in Russia and participation in the project of Olympic lottery Sochi 2014. Furthermore we expect that the problem of regulating the market of online casino in Russia and Ukraine will be solved this year.

3) Which are the main characteristics of your products?

Today Alsart actively develops its lottery direction - the project «NovoloT». This is a unique lottery that has no analogues in Russia. In this lottery winnings are defined at the time of purchasing a lottery ticket, and after the run. Within the framework of the project we are opening the lottery centers under the brand «NovoloT» in Moscow and other Russian cities, also we manufacture and supply specialized lottery terminals «NovoloT».

Technical parameters are not the main characteristics of this product. The main characteristic is that the terminals «NovoloT» and lottery by itself fully comply with current Russian legislation. It's no secret that after the closure of casinos and slot halls in 2009 in Russia, it began to appear pseudo-lottery halls with slot machines, disguised as lottery terminals. The authorities fight with such institutions, but as long as ex-visitors of casinos won’t get alternative, lottery halls and “spurdog” will continue to arise.

«NovoloT» is a solution, which aimed at forcing the illegal gambling business in accordance with the policy of the President of Russia. We’ve managed to make the process of participation in the lottery fun, enjoyable and remarkable event, similar by its emotional feelings to the game on the slot machines.

4) Have you scheduled the launch of other products for the near future?

Today Alsart is more focused on the operating, delivery of equipment of foreign manufacturers and service delivery than on production. Producing of lottery terminals «NovoloT» is quite enough. Today, opening of the new lottery centers under the brand «NovoloT» is a priority for us in Russia. And also - starting services in trading sector (Forex, CFD, etc.) and the opening of the poker clubs.

5) Have you committed any distribution or sales deals recently? What do they consist of?

As I said above, we expect a cancel of the ban on gambling in Ukraine in the near future, we are opening a trading office «Aurora» there, and we are preparing to take a dominant share of the supplies of gaming equipment to the Ukrainian market. We are already negotiating with major producers of imported gaming equipment on the representation of their interests in Ukraine and in Russia (for supplying of equipment for the gaming zone). Also we meet with customers. I must say that Ukraine has a lot of orders, but so far this are pre-orders for gambling equipment - everybody is waiting for the fact of of ban’s cancellation in Ukraine.

6) In which trade fair’s will you participate this year?  

RGW, G2E and IGE. Nearest exhibition  - forum Russian Gaming Week (EELEX) 2010 is the most interesting for us now. This is the main industry event for the CIS markets, where we operate. Despite the current legal situation, they have a really high potential. Especially, in anticipation of the ban’s cancellation on gambling activities in Ukraine.

7) How do you see the industry in Latin America and other main territories this year?

Markets changes, somewhere more, somewhere less, some markets opens, and some of them close. Laws, requirements and regulations of the authorities’ change. In my opinion, there is no such a rapid development of the gambling industry in the whole world, which we have seen, about 5 years ago. All markets are still in stagnation, and only come to life after the crisis. The major markets for Alsart for the next 2-3 years are Ukraine and Russia.