News: ALL UPDATE 1-Aristocrat's buyout of Britain's Playtech set to fail

(Adds details, background, Aristocrat statement)

Feb 2 (Reuters) - Gambling software maker Playtech PTEC.L does not expect its shareholders to approve its proposed takeover by Australia's Aristocrat (ALL) , the British company said on Wednesday, adding it was also looking at other deal proposals.

The news sent Playtech shares down nearly 5% to 550 pence in early trading.

Playtech needs approval from 75% of shares voting at its general meeting scheduled later in the day to go ahead with the 2.1 billion pound ($2.84 billion) offer from Aristocrat.

"The emergence of a certain group of shareholders who built a blocking stake while refusing to engage with either ourselves or Playtech materially impacted the prospects for the success of our offer," Aristocrat Chief Executive Officer Trevor Croker said in a separate statement.

The Australian company said most of the dissenting shareholders took stakes in Playtech after the 680 pence-per-share offer was announced in October.

As the United States opens up to sports betting and potential bidders assess British gambling expertise, Playtech was approached by Hong Kong-based investor Gopher Investment and former Formula One team boss Eddie Jordan last year. ($1 = 0.7388 pounds)