The Colorado platform of an Australia-based operator of sports betting sites remains up and running, even after the bookmaker said it was shutting down.
PlayUp asked the Colorado Department of Revenue’s Division of Gaming to place its app and website in the state into a “maintenance mode” last week, the regulator told Covers.
That would mean users in Colorado could not place additional bets but could still withdraw their funds. It followed a similar step taken in New Jersey by PlayUp following regulators there withdrawing the company’s authorization to accept sports bets after it allegedly failed to comply with the state’s requirements for wagering.
“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,” PlayUp CEO Daniel Simic told Covers in an email on Saturday.
Still up?
However, as of Monday afternoon, PlayUp’s Colorado sports betting site looked to be running as usual. Meanwhile, PlayUp's New Jersey sports betting site displayed a message about its current, paused state and not much more. The company only offered legal sports betting in Colorado and New Jersey before its recent regulatory troubles.
Why exactly PlayUp’s Colorado site appears to still be taking bets is unclear. Emails Covers sent to representatives for the Department of Revenue and PlayUp asking about the site were not answered before this article was published.
What is becoming clearer and clearer is that PlayUp has issues it is trying to iron out. The Australian Financial Review reported recently that the company was trying to raise $10 million in fresh capital but paused those plans until it could sell its U.S. business.
PlayUp received a $35-million investment from now-bankrupt crypto company FTX in late 2021, but a reported acquisition attempt by the latter fell apart and the bookmaker has since run into a rough patch with regulators and other investors. An attempt to take the Australia-based bookmaker public at a valuation of $350 million was scrapped early this year, which was allegedly at least partly due to PlayUp's failure to provide certain information.
But winding down?
Simic told Covers that PlayUp’s U.S. business was intended to be wound down by June 14 but this didn’t happen.
“Unfortunately, all U.S. staff and several staff in Australia holding global corporate positions were let go on 30 June 2023 and a wind-down procedure was set in place,” Simic added. “This process included speaking with each staff, determining who remained actively working for the company between 16-30 June, and organizing the return of company property. Any salary issues between 16-30 June have now been resolved.”
Simic added that while New Jersey regulators did revoke the company’s authorization for legal sports betting there, it was done without prejudice and PlayUp could reapply.
“Their concerns are validly noted and we are working through 3 of the remaining items on the list,” he wrote. “Contrary to other news articles, all withdrawals are being processed on time and I'm sure the NJDGE will reflect the same should they be asked.”
