PlayUp US Sale Close to Completion, Says CEO

Article ByDavid Weir

July 13, 2023

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

PlayUp, an Australia-based gaming company, is reportedly on the brink of selling its United States operations to an undisclosed bidder. The company’s global CEO, Daniel Simic, confirmed the news to Legal Sports Report this week. He also said that the deal is expected to be finalized sometime in July.

PlayUp has an active sports betting presence in New Jersey and Colorado, and has agreements for market access in Pennsylvania, Iowa, and Indiana.

It has had somewhat of a rocky ride trying to enter the U.S. sports betting market, being involved with now-collapsed cryptocurrency exchange FTX and its disgraced CEO, Sam Bankman-Fried.

Since that investment disappeared, the company has trimmed its workforce to 18, down from 36.

Simic says the PlayUp U.S. sale should have happened already on June 30. But he expects an official announcement soon.

“We did have big plans to launch in more states, but we were funded by FTX, as you’re probably aware, and since their collapse, we’ve had to go back and rethink our strategy,” he told LSR.

“And that strategy is to really hone in on those states where we’re currently live now, which is New Jersey and Colorado. We’re not a FanDuel. We’re not a DraftKings. But we can be an important player with our skill set and our knowledge of the gambling space.”

Related: The best online sportsbooks in Colorado, rated and reviewed

A Rocky Road

PlayUp’s journey in the U.S. sports betting market has been fraught with challenges. The company initially secured $35 million in funding from the now-defunct cryptocurrency exchange operator FTX, and was looking at a potential buyout with $450 million in funding on the line.

However, the deal fell through when then-CEO Dr. Laila Mintas refused to stay with the company post-acquisition.

Only months later, FTX had a high-profile collapse after it emerged Bankman-Fried and his company had defrauded investors and covered up balance concerns.

Later, PlayUp came close to another big deal that fell through at the final hurdle. It planned on going public with shares via a reverse merger with IG Acquisition Corp., a special purpose acquisition company (SPAC) controlled by Bradley Tusk.

The deal, which valued PlayUp at $350 million, was eventually called off when PlayUp failed to provide crucial financial documents.

Handing Out Cash

PlayUp’s U.S. operations, currently live in Colorado and New Jersey, are undergoing significant restructuring. Only seven of its remaining employees are expected to transition to the new operation when it is acquired.

Simic stated that the restructuring and new ownership mean the brand is “starting fresh.”

“Everyone, including us, focused too hard on getting as many licenses as we could and trying to take over the U.S.,” he said.

However, the company’s restructuring has not been without controversy.

A former employee claimed that they had not been paid since June 15. Another source confirmed to Legal Sports Report that they are still owed money by the company.

Simic responded by saying he is reviewing each employee’s work to determine who has been fulfilling their duties. And according to him, some of them apparently haven’t.

“I’m not willing to just hand out cash,” he said. “And they’ve been taking advantage of PlayUp for however long, you know, there’s going to be a situation where PlayUp will be suing them for false representation that they’re working for PlayUp and haven’t been.”