PlayUp Sportsbook’s New Jersey License Revoked, Colorado Shutdown Imminent

Article ByDavid Weir

July 21, 2023

Spread the Word:

Posted in: US Sports Betting News, Colorado Gambling News, New Jersey Gambling News

The New Jersey Division of Gaming Enforcement (DGE) has revoked the transactional waivers of Australian-based sportsbook operator PlayUp, effectively suspending its operations in the state.

“PlayUp’s continued non-compliance… and inability to comply with requirements… demonstrate that it is currently unable to offer real-money sports wagering to New Jersey customers at the standard required by the state’s statutes and regulations,” the DGE said in a letter it sent to the operator earlier this week.

The company also now plans to temporarily close up its online sportsbook in Colorado, the only other state it is licensed to operate in.

This blow comes shortly after PlayUp CEO Daniel Simic told media outlets the business was finalizing a deal to sell its U.S. operations to a listed gaming operator.

Despite the suspension Simic insists that the acquisition plans remain unaffected. “Our current acquisition plans remain on track,” he said.

PlayUp has had a tough time in the U.S. market. That was not helped by the collapse of, and subsequent criminal investigation into one of its major investors, former cryptocurrency trading platform FTX.

Staff and Leadership Depart

The DGE’s decision to revoke PlayUp’s license came after the company failed to provide requested financial information.

The New Jersey regulator had asked for year-to-date remittance to employees, with specific bank statements from January to June 2023 and payroll registers from these dates. PlayUp’s failure to meet the deadline for providing this information led to the revocation of its license.

Earlier this month, PlayUp’s U.S. staff threatened to shut down operations if they were not paid for the period of 16-30 June. Simic said at the time that some of the staff were taking advantage of the situation to get paid without doing any verifiable work.

“I’m not willing to just hand out cash,” he told Legal Sports Report.

Since then, Simic has since stated that all salary issues have been resolved.

However, the company’s failure to provide the DGE with adequate financial documentation suggests that it was unable to prove it had paid its U.S. staff. This, along with the departure of many key members of staff, including the CFO and the head of its legal department.

The DGE was not informed of the departure of former PlayUp CFO Glenn MacPherson until it attempted to contact him in regard to its request for information.

Noncompliance and “Maintenance Mode”

In addition to its failure to provide the requested financial information, PlayUp has several other outstanding compliance issues.

These include outstanding invoices owed to the DGE, significantly reduced staff numbers that could compromise the operation, and the suggestion it let an internal fraud investigation go unreported to the regulator.

Despite these issues, the DGE has stated that PlayUp can reapply for a license in the future.

These incidents follow the unsuccessful move for a $450 million sale to crypto exchange FTX in 2021.

Despite these setbacks, PlayUp secured a $35 million investment from Sam Bankman-Fried’s FTX in January 2022 – but the crypto exchange itself collapsed soon after.

Bankman-Fried is now the center of a multibillion fraud investigation, and PlayUp has been unable to secure the needed funding to satisfy New Jersey regulators it can be a going concern.

PlayUp is one of thirty-thousand investors involved in FTX bankruptcy proceedings looking to claw back up to $353 million from the failed exchange, as reported in the Australian Financial Review.

PlayUp’s future in the U.S. market remains highly uncertain, but the company’s CEO remains staunchly optimistic.

“We are happy to place the website in ‘Maintenance Mode’ in New Jersey, and have also sought permission to do the same in Colorado until our new platform is ready, our team is prepared, and we have secured a new partner to replace FTX with the firepower to be highly successful in the USA,” Simic said.