Greek gaming operator Intralot is understood to have approached Australian slot machine operator Tabcorp with interest in acquiring its gaming monitoring arm, Max Gaming, in a potential deal valued at up to A$610 million.

Sources cited by The Australian suggest Macquarie Capital is advising Tabcorp on the discussions, while Gresham may also be involved.

The approach follows a strategic review launched by Tabcorp CEO Gillon McLachlan, who took the reins last year. While no formal decision has been made, Max Gaming is considered a non-core asset within Tabcorp’s portfolio.

At the recent Macquarie Australia Conference, McLachlan said the group does not need to sell the business to reduce its A$753 million debt but acknowledged Max Gaming’s strong performance.

Analysts value the business at around A$610 million based on a 10x EBITDA multiple, factoring in the renewal of the NSW monitoring licence in 2032 – a licence that generates two-thirds of Max Gaming’s revenue.

If Tabcorp were to lose the NSW licence, analysts estimate the business could be worth closer to A$400 million.

Intralot holds Victoria’s monitoring licence until mid-2027 and is currently bidding for the next term. The company recently extended its New Zealand contract through to 2032 and reported revenue of €376.4 million (A$656 million) last year.

Tabcorp, with a market cap of A$1.6 billion, paid A$600 million upfront last year to retain the Victorian wagering licence as part of an A$864 million deal.

It reported half-year revenue of A$1.3 billion (up 10%) and a net profit of A$25.3 million. The company recently launched a live sports-betting trial in pubs and clubs across NSW.