PlayUp Shuts Down New Jersey and Colorado Operations amid Regulatory Setbacks

PlayUp announced it would temporarily shut down its operations in New Jersey after the New Jersey Division of Gaming Enforcement (DGE) issued an order revoking the transactional waivers allowing the company to conduct sports wagering in the state. The following shutdown of PlayUp’s Colorado website and platform meant the operator no longer offered its services in the USA, further degrading its prospects.

The Operator Failed to Meet Requirements

The DGE’s decision resulted from PlayUp’s inability to provide the regulator with financial details related to its New Jersey operations. While the company complied with some requirements, it failed to present certain requested bank statements and financial information. PlayUp ignored the DGE’s initial warnings, only partially complying after the regulator threatened to revoke its license.

Several other concerns further compounded PlayUp’s unfavorable position, causing the DGE to revoke the transactional waivers allowing the operator to offer its services in New Jersey. The regulator noted that the company’s outstanding invoices, lack of leadership, and inability to comply with standards were sufficient cause to revoke its license. 

PlayUp is not permitted to transact any new internet gaming or sports wagering-related business with any New Jersey casino or racetrack.

DGE official letter to PlayUp

PlayUp must still honor its existing wagers and allow New Jersey customers to withdraw funds. The DGE’s letter states that the operator can reapply for a license anytime, following New Jersey’s existing regulations. However, the company’s dwindling US staff makes such prospects highly unlikely in the short term, meaning clients must search for another sportsbook.

PlayUp May Entirely Exit the US Market

Shortly after PlayUp’s shutdown in New Jersey, the operator suspended its services in Colorado, its remaining active US jurisdiction. The company contacted the Colorado Division of Gaming, requesting to put its app and website into maintenance mode, suspending active betting and customer deposits. Customers may still withdraw funds, but PlayUp did not disclose when its services would return online.

Such developments do not bode well for PlayUp’s US expansion plans. The operator recently withdrew its application for an Ohio sports betting license after allegations of illegal wagering. Although the company’s website states that PlayUp Iowa is “coming soon,” such prospects have mostly diminished. PlayUp CEO Daniel Simic noted that the company would slash its US division employees from 40 to 10- another worrying sign.

PlayUp suspending its New Jersey and Colorado operations may be the final nail in the embattled company’s US expansion plans. Its failed NASDAQ listing, $35 million investment from failed crypto exchange FTX and middling presence in its home Australian market pose significant challenges. As its exit from the US market looms close, PlayUp must adapt, restructure its operations and recover from its streak of setbacks.