Play'n GO reportedly considers sale to a regulated gambling group
Deals & M&A2 min read
Play'n GO is reportedly considering a sale, while its chief executive Johan Törnqvist declined to comment. Industry sources named Aristocrat, Genting and Light & Wonder as possible buyers; the material does not identify a confirmed bidder or transaction.
Play'n GO has told all major aggregators that it will stop supplying them with games. The decision was reportedly linked to content leaking abroad. It followed the closure of Play'n GO's Asian operations a month earlier.
Multiple sources reportedly said that a sale of Play'n GO was a real possibility. Chief executive Johan Törnqvist declined to comment.
Industry experts said a withdrawal from aggregators on that scale often indicates a supplier is considering a major acquisition or merger. Paul Leyland of gambling industry advisory and research company Regulus Partners said organising the accounts could be an important reason for doing so. Clear cash flows may be needed to assign them a capital value.
An industry observer named Australian listed company Aristocrat as a possible buyer, saying it had reportedly struggled to scale up earlier acquisitions in the sector. Aristocrat was thought to pursue a content-focused strategy and receives regular revenue from Play'n GO in Europe, where opportunities for online casino and multichannel distribution of content to physical casinos are currently limited. Sources named Genting and Light & Wonder as other possible buyers.
Play'n GO operates in six US states, making it attractive to companies seeking to enter or expand in the US online gambling market. Industry expert Andrew Tottenham said an acquisition-led expansion strategy could make sense for potential buyers.
Sources familiar with Play'n GO said the supplier plans to expand its external government affairs activities. The company reportedly aims to supply legal, fully regulated markets.