Evgeny Kovtun: "Direct sales are still the most popular"
Many operators of gaming business prefer purchases, or joint operation, to leasing of slot machines. The main pretensions to leasing are: quick ageing of equipment and absence of industry legislation, told the Vice President of Association of Gamin Business Representatives, Evgeny Kovtun to the "Business" reporter, Ekaterina Kolesnikova.
- How would you qualify the Russian leasing market in the gaming industry?
- Currently it's absent, because according to the current legislature, it is illegal to engage in leasing without a license. Prior to adoption of statute "About the licensing of several kinds of activities" this market segment has been in embryo state and, as we foresee it, it will not grow in the future. I can distinguish the following companies that have successfully engaged in leasing: Unicum and Smartgames.
- Do you agree with the producers' of slot machines forecasts of the forthcoming growth of leasing?
-It's still unclear on what level will the gaming business advance the next year and what will underlie the new formats of gaming establishments. Anyway, I think that direct sales will be the most preferable mechanism of gaming equipment distribution. What is the use of leasing of gaming equipment if tomorrow the company doesn't get the license and ceases its' existence? Everyone is waiting for the federal law.
- What is the requirement for growth of the leasing market?
- Strange as it may seem, there is a lack of industry's federal legislation. Starting June, 2005, when the production and sales of slot machines has ceased, the small growth of the leasing services market that had outlined in the end of 2004 - beginning of 2005 has consequently ended too.
- The main difference of the Russian slot machines leasing market is the absence of insurance. What is the cause of it?
- With the absence of federal legislation, and with constant changes to tax legislation, the gaming business remains one of the most risky types of activity. Therefore, it does not attract insurance companies. As soon as the rules of game are defined on federal level, the insurance companies will make haste to this market.
- There are three more ways to obtain slot machines aside from leasing: purchase, rent, and joint operation. Which one is the most perspective and why?
- Direct purchase was, is, and will be the most popular way. The possible innovations to the federal law "About the activities in organization and holding of games and betting" support this, because the operator will have to possess certain assets. Joint operation will possibly also actively advance. Leasing is a more complicated case: its main shortcoming is the fact that equipment ages faster than one buys it out.
Business