PlayUp Settles with Ohio Regulators over Illegal Wagering Allegations

PlayUp, the Australian-based online sports betting operator, has withdrawn its application for a sports betting license in Ohio following a settlement with the OCCC. 

Ohio Fines PlayUp $90,000 for Accepting Illegal Wagers

As part of the settlement, PlayUp has agreed not to seek any gaming-related license in Ohio for the next four years, and it has withdrawn its application for a sports betting license. The agreement also includes a fine of $90,000 and $30,000 restitution to players who accessed the Slots+ product subject to the cease and desist order.

The OCCC accused PlayUp of accepting illegal wagers from individuals in the US after April 16, 2015, and using affiliates to promote the Slots+ product to Ohio residents. PlayUp has denied these allegations but decided to settle the case outside of the appeal process.

Slots+ is a pari-mutuel wagering system available on advance-deposit wagering (ADW) apps presented in a different manner visually, using current racing results rather than historical racing results to determine the outcome of the games. 

The OCCC issued a cease-and-desist order back in December. As a result, PlayUp removed the Slots+ product from the 24 states where it was live and currently continues to operate in four US jurisdictions – Colorado, New Jersey, Iowa, and Indiana.

PlayUp to Notify Other States of Settlement with OCCC over Illegal Wagering

The settlement with the OCCC means PlayUp will not have a license denial on its record, but gaming industry officials state that the company will still need to inform other states where it is licensed about the issue. The company has an advance deposit wagering racebook that has been approved in 26 states.

The agreement stipulates that PlayUp will contact the OCCC at least 90 days before submitting any application for product review after the four-year ban concludes. This provides the Commission with time to review any product the operator wants to offer in Ohio before deciding on its suitability for the state.

Over the past year and a half, PlayUp has encountered multiple challenges as it aimed to expand in the US, including legal disputes with its former US CEO, Laila Mintas, and failed acquisition attempts by now-bankrupt cryptocurrency exchange FTX. 

PlayUp had accused Mintas of breaching her employment agreement and threatening to damage the company’s reputation, but the court determined that PlayUp did not prove the likelihood of success on the merits. In September, PlayUp announced plans to merge with a SPAC company to become a public company, but the deal was terminated in January after IG Acquisition Corp. accused PlayUp of not providing audited financial statements in a timely manner.