Play’n GO cuts game supply to major aggregators over black-market access
Deals & M&A2 min read
Play’n GO told major aggregators on 29 October that its games would no longer be available through them, reportedly aiming to close routes to offshore markets, including via MGA-licensed operators. Chief commercial officer Magnus Olsson said the supplier continues to review traffic and act when needed, describing the move as consistent with its existing strategy; sources differed on the financial impact.
Play’n GO has stopped providing its games to every major aggregator, according to the report, and warned partners that black-market availability is unacceptable. Play’n GO sent letters to the major aggregators on 29 October announcing that its titles would be withdrawn. The stated purpose was to shut the last routes by which the developer's games could reach offshore markets, MGA-licensed operators among them.
This came after the supplier pulled out of Asia entirely toward the end of September. Sources said that exit formed part of a wider plan to eliminate any black-market liabilities still outstanding. Sources offered varying estimates of the precise effect, but agreed the decision will likely cost the business "tens of percent" of its GGR overnight. According to industry sources, the decision has sparked some displeased emails between the company and its ex-partners.
CCO Magnus Olsson said the company would welcome working with anyone serving locally licensed markets with proper compliance and licensing in place. He said the business reviews its traffic continually and acts as required, and that this case is no different. He added that the step "does not constitute a change of direction."
Sources reportedly said the move followed a decision to lay off some employees, with the HR function particularly affected. The report said the redundancies were unrelated to the aggregator cut-off, with many exits happening months before the decision was taken.
The business now plans to partner exclusively with operators holding local licences. Sources said the company expects to be able to speak out more publicly, and so plans to devote its attention to external and government affairs over the coming months. According to sources, another strand of the strategy will probably be a bigger push into land-based slots alongside the online operations.