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. Last Updated: 07/27/2016

Casino Owner Bets on Foreign IPO

Casino chain owner Ritzio Entertainment Group is seeking a London share listing in 2006, banking sources said on Friday.

Ritzio, operator of the Vulkan chain of gaming clubs, declined to comment.

But banking sources said investment bank Credit Suisse First Boston was among the banks that pitched for the deal. An announcement is expected on the bookrunners soon, they said.

"Investors would love this IPO," said Renaissance Capital analyst Natasha Zagvozdina, who put the sector's 2004 growth rate of 34 percent in pure cash terms at $5.6 billion, expected to top $7.5 billion in 2007.

That is tiny by U.S. standards, where gambling revenue including lotteries was $73 billion in 2003, but the market is growing fast. Gaming taxes contributed 8 percent of Moscow city's budget revenue in 2004. "The Russian business is characterized by a very high growth rate. And it's a market that's all cash," said Zagvozdina.