Claims that Play'n GO is preparing for a sale

Swedish casino provider Play'n GO is considering a sale to a large gaming company subject to heavy regulation, according to information obtained by NEXT.io. Multiple sources said the company is preparing for a sale and that the deal could be worth in the range of several hundred million euros.

Last week the company asked all major aggregators to stop distributing its games. The reason given was an offshore leak. The development came a month after the company closed its Asian operations.

Industry experts say the scale and timing of this pullback by aggregators is consistent with behavior seen before a purchase or merger with a buyer under heavy regulation. Paul Leyland of Regulus Partners said cash flow must be clean and that only low-risk revenue can be turned into capital. In his view, this kind of revenue stands out mainly when it is subject to local regulation, and only buyers seeking to create capital and outside shareholder value would weigh it.

One observer named Australia's Aristocrat as a possible buyer. According to the observer, Aristocrat's content-focused strategy and Play'n GO's regulated European revenue and limited online distribution could complement each other. It was also noted that Aristocrat has struggled to scale its previous acquisitions. Sources also listed Genting and Light & Wonder among possible buyers. Play'n GO's operations in six US states also make the company attractive to buyers wanting to enter the online market in America.

Co-founder and CEO Johan Törnqvist responded to a question on the matter with "No comment."