By Shanima A

July 14 (Reuters) - A Hong Kong based investor abandoned its plans for a takeover bid for UK gambling software provider Playtech on Thursday, blaming challenging market conditions, sending its shares tumbling more than 18%.

Investment and advisory firm TTB Partners, Online Betting Playtech's third-largest shareholder, had made a takeover approach on behalf of an unnamed investor group but said it would not make an offer.

Playtech, which says it is the world's largest supplier of online gambling and sports betting software, had attracted a takeover interest since early this year as companies look to capitalise on a boom in online betting set off by the pandemic.

"Challenging global economic and market conditions which were not present in February made it impossible to create the right structure for a new company," Playtech Chief Executive Mor Weizer and former CEO and current investor Tom Hall said in a joint statement.

Both Weizer and Hall had approached TTB Partners with their interest in participating in the investor group in February.