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Games Global has withdrawn its IPO on the New York Stock Exchange (NYSE), which was scheduled to launch today (14 May).

In an SEC filing submitted 13 May, Games Global said it was cancelling the offering due to “current market conditions”.

The last-minute decision by the iGaming supplier marks a sudden end to what was likely to be the largest gambling IPO of the year.

The Zinnia Group-owned business was targeting a $2.13bn valuation, which would have raised between $96m and $113m in new funding.

This would have seen the business sell 14.5 million ordinary shares for between $16.00 and $19.00 per share.

The timing of the withdrawal notice, just hours before the IPO was due to begin, has led to some speculation the offering had not gathered sufficient interest among investors.

One expert told NEXT.io that the decision was highly unusual but that presumably the pricing and demand wasn’t where Games Global wanted it to be.

They added that another possibility is that an entity is planning to purchase the company outright, with the IPO a “stalking horse”.

Games Global’s IPO plan

Games Global first revealed its intention to launch an IPO in an April SEC filing, in which the business outlined its ambition to become the leading US iGaming supplier.

Zinnia would have retained over 50% of the Walter Bugno-led firm’s total share capital following a public listing.

Post-IPO, the company was due to be listed under the GGL ticker symbol on the NYSE.

The money raised was set to be ploughed back into the business, with R&D, sales and marketing, tech infrastructure and potential M&A cited as possible focuses.

The Isle of Man-registered company’s decision to go public was highlighted in the financial press as another example of businesses snubbing the London markets for the US.

Many companies including Flutter Entertainment, which recently approved a measure to move its primary listing to the NYSE, have sought US listings.

Reasons for this have included a desire to access deeper capital markets and a broader investor base.

iGaming stalls in state houses

Online casino is often highlighted by US industry as the segment which will drive future revenue for operators.

However, iGaming is currently legal in only seven US states: New Jersey, Connecticut, Michigan, Delaware, West Virginia, Pennsylvania and Rhode Island.

The 2024 legislative sessions have so far passed without any movement in this area, with all efforts to legalise the activity ultimately failing.

The most high-profile of these efforts, Sen. Joseph Addabbo Jr.’s widely touted New York online casino bill, faces a difficult journey to passage.

The proposed legislation has come under fire from New York casino workers, who have criticised it for cannibalisation concerns.

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