Intralot denies reports of potential Australia acquisition

Intralot has rejected speculation it has held talks over a possible acquisition in Australia, with reports in the country suggesting it is weighing up a move for Max Gaming, the gaming monitoring arm of Tabcorp.

According to an article in The Australian, Intralot made an initial approach to Tabcorp over a potential purchase. The same article said Max Gaming could be worth up to AU$610 million (€348 million/US$394 million).

Sources told the newspaper Macquarie Capital, an investment banking and financial services group, is working for Tabcorp. Gresham, an M&A advisor, could also be involved in the talks, sources said.

Tabcorp launched a strategic review in August last year after reporting a $1.37 billion loss for the 2024 financial year. However, the newspaper said no decision has been reached as to whether it will sell Max Gaming.

Gillon McLachlan, CEO of Tabcorp, earlier this month reiterated this, saying it does not need to sell the business to reduce debt.

Intralot rejects speculation over discussions

Responding to the reports, Intralot said in a statement that no such talks have taken place. It did not reference Tabcorp or Max Gaming directly, but did acknowledge reports of a mooted deal in Australia.

“Intralot clarifies that no binding agreement of this kind exists,” it said. “Currently, Intralot is not conducting any negotiations relating to any acquisition in Australia.”

This was the second statement put out by Greece-headquartered Intralot about a possible overseas acquisition in the past few weeks. An earlier statement in April also denied reports of a “cross-border merger”, saying no binding agreement had been reached.

Intralot does have a presence in Australia. It holds the monitoring licence in Victoria until 2027, though the state recently opened a bidding process for the next licence term. It also previously held a lotteries licence in the country but handed this back in 2014.

What is Max Gaming?

Although owned by Tabcorp, Max Gaming has no synergies with its core wagering and media operations. The business primarily focuses on integrity services, including the monitoring of slot machines.

According to The Australian, via Max Gaming, Tabcorp is the largest slot machine monitor in Australia. Holding mostly exclusive licences, it has an estimated market share of 67%.

Its approximate $610 million value includes the New South Wales monitoring licence, which was renewed last year. The licence will now run through to 2032. Without this licence, the value of the business would be around $400 million, analysts said.

Intralot keen to expand global footprint

As for Intralot, the group reported a mixed set of results for 2024. Revenue was 3.4% higher at €376.4 million and adjusted EBITDA edged up 1%, but net income after tax and minority interest slipped 16.5% to €4.9 million.

Interestingly, the earnings report made reference to opportunities in international markets and expanding the group’s global footprint.

“With a strong presence in key international markets and a continuous focus on digital transformation, we are well-equipped to seize new opportunities in the evolving gaming industry,” Intralot said.

“By leveraging our expertise in next-generation gaming solutions, we aim to enhance player engagement, expand our global footprint and deliver long-term value to our stakeholders.”