PlayUp Nears Potential CrossBet Deal Amid Ongoing Turbulence

PlayUp, once a rising name in the Australian wagering market, may be on the verge of a significant shake-up. Industry sources suggest the operator is close to finalizing a deal with CrossBet, another Australian operator, in a move that could take the form of an outright merger or the sale of specific assets. Individuals familiar with the matter indicate that the deal could be sealed within the next two weeks.

The Company Remains Locked in А Legal Battle

According to a recent exclusive report by news outlet NEXT.io, neither company has confirmed the discussions. The platform cited anonymous industry sources with in-depth knowledge of the ongoing negotiations. A potential merger could mark a turning point for PlayUp after a turbulent streak of legal battles, regulatory fines, and operational setbacks. 

PlayUp‘s bitter fallout with its former US CEO, Dr. Laila Mintas, remains one of the company’s most damaging episodes. The two parties remain embroiled in a legal dispute over the breakdown of a planned $450 million acquisition by cryptocurrency exchange FTX. PlayUp claims Mintas derailed the agreement, while the former executive remains adamant in her position.

Mintas maintains she fulfilled and surpassed all her obligations and has countersued for defamation, breach of contract, and bad faith. She is also demanding restitution of an 11% ownership stake she claims was guaranteed in her contract, after investing $1.2 million of her own funds in the company.

The Merger Could Mark a Break From a Long String of Setbacks

Regulatory woes have compounded PlayUp’s issues. In 2023, the company faced a record fine of almost AUD 600,000 ($392,000) in New South Wales after an investigation uncovered 33 illegal gambling advertisements on its website. NSW legislation prohibits inducements to set up betting accounts and bans advertising to people without accounts. 

PlayUp’s US ambitions have also faltered. The operator shut down its New Jersey business after state regulators revoked its wagering approvals. PlayUp’s Colorado platform closed its doors soon after, significantly hampering the company’s plans for US growth. While the operator had plans to expand to other US jurisdictions such as Pennsylvania, these appear to be on hold.

Against this backdrop, the potential CrossBet deal offers a glimmer of stability. Whether through a merger or asset acquisition, the deal could help PlayUp reset its course in its core Australian market. Such a move could be crucial in a time when market consolidation is gathering speed and operators are seeking scale to survive.