Online bingo company Stride Gaming, chaired by the ex-boss of Sportingbet Nigel Payne, is set to float in London’s junior market after unveiling plans to sell £10m worth of shares to investors.
The business, which has appointed Cantor Fitzgerald to raise the cash, said it wanted to take advantage of growing consolidation in the sector due to regulatory changes.
“We feel this is an opportune moment for a scale bingo-led operator to come to (the alternative investment market and) capitalise on the opportunities afforded by the regulatory changes, which are forcing consolidation in the industry, to grow organically and through acquisition,” said Payne.
Chancellor George Osborne announced plans for a so-called point of consumption tax on online gaming in his last budget, which will weigh on bingo providers’ margins.
There are more than 400 online bingo operators targeting the UK, opening the door for more mergers, Stride said. The group owns brands such as Kitty Bingo, Lucky Pants Bingo and Jackpot Cafe. Sportingbet was bought by William Hill and GVC in 2012.