More Leads Talks to Acquire Stake in Casino Developer Sunflower for Up to $600M

More Provident and Pension funds is leading a major investor group in advanced talks to acquire a 15% to 20% stake in Sunflower, a company developing online casino games. The emerging deal values the private company at $3 billion to $3.5 billion, with the acquisition expected to total between $500 million and $600 million. Of this amount, More Provident and Pension itself is expected to invest over $300 million (about 1 billion shekels).

Founded in late 2022 and managed by entrepreneurs Ram Mizrahi and Ben Gopher, the company has achieved unprecedented success thanks to its Crown Coins Casino game. This activity generates annual revenues exceeding $2 billion and a net profit estimated at over $300 million.

As reported on Tuesday in TheMarker, other institutional bodies and international funds have also approached the company alongside More Provident and Pension, but the primary negotiations are currently taking place with the More-led group, which mainly includes family offices and financial investors.

Alongside its rare profitability, the deal is accompanied by significant regulatory challenges. Sunflower operates on a Sweepstakes Casino model, which falls under a legal loophole in US gambling laws. Since a number of US states—including New York, California, and Illinois—have begun blocking and restricting this model, the negotiations include protective mechanisms and kickers designed to guarantee investor returns in the event of legislative changes.

At this stage, the return on investment is primarily based on ongoing dividend distributions, while an initial public offering (IPO) on foreign exchanges is being considered for the long term, provided the regulatory environment permits. This move joins a series of prominent non-marketable investments by More Provident and Pension led by Ori Keren and Omer Shifer, including investments in EdgeConneX, Enery, and the Nono and Mimi restaurant group.