LONDON, Oct 24 (Reuters) - Swedish gaming operator

Cherry is exploring options for its online casino and sports

betting subsidiary ComeOn including a sale, two people familiar

with the matter said.

Cherry would be the latest European gambling group looking

to divest its consumer-focused brands in order to focus on its

business providing software and services to online gaming firms.

Britain's Playtech ( PYTCF ) in September announced the sale of

its Italian gaming unit Snaitech to Paddy Power owner Flutter

for 2.3 billion euros.

Owned by private equity firm Bridgepoint, the

Swedish firm is working with bankers at Moelis ( MC ) and Jefferies to

explore options for ComeOn, which runs online casinos including

Saga Kingdom and Getlucky, the people said.

ComeOn could be valued at around 500 million euros ($648

million)in a sale, based on eight to nine times earnings before

interest, tax, depreciation and amortisation (EBITDA) of 60

million euros projected for next year, the people said.

Spokespeople for Bridgepoint, ComeOn, Moelis ( MC ) and Jefferies

declined to comment, while Cherry could not be reached for

comment.

The process is in the early stages and Cherry is expected to

proceed with an auction later this year, said the people. They

noted that no sale was guaranteed and declined to be named

discussing confidential information.

A consortium led by Bridgepoint took Cherry off the Nasdaq

Stockholm in 2018 for 9.19 billion Swedish crowns - equivalent

to $1 billion at the time. Cherry, founded in 1963, operates in

online gaming, restaurant casinos and gaming development. It

completed its 280-million-euro acquisition of ComeOn in 2017.

Potential bidders for ComeOn include European gambling

operators and private equity firms with assets in the sector,

the people said. ComeOn, founded in 2008 and led by CEO Juergen

Reutter, has 15 brands and more than 550 employees across

Europe.

($1 = 0.9266 euros)

($1 = 10.5663 Swedish crowns)