PlayUp close to offload U.S. operations under restructuring plans
Australia-based betting platform PlayUp is reportedly all set to sell its US operations to an unidentified public company as part of its wider plan to restructure its global business. According to emerging reports, PlayUp Chief Executive Officer (CEO) Daniel Simic told reporters that the company is close to offloading its American business, but he didn’t reveal the name of the potential buyer. He also stressed that the sale of the U.S. operations wouldn’t affect the company’s Australian business.
Simic didn’t mention any amount as a sale price for the U.S. operations, but he went on to state that merely seven staff members of the company would make the transition to the acquiring entity. At the beginning of current year, the operator had a total of 38 employees in the U.S. By the end of last month, the number of U.S. employees slipped to 18.
In the U.S. states of Colorado and New Jersey, the Australian operator offers online sports betting services. Earlier this year, Simic has dropped a hint that it could close its U.S. operations at the end of second quarter (Q2). Now, it is believed that it will likely be concluded sometime later this month.
It is worth-noting here that almost nothing has gone right for PlayUp since its entry in the U.S. gaming market. Initially, it suffered a failed deal with the cryptocurrency exchange FTX, which had expressed interest in acquiring the company. The two parties also remained locked in a legal battle.
Furthermore, PlayUp’s subsequent attempt to go public through a SPAC (special purpose acquisition company) deal also collapsed.
In the meantime, the gaming company kept offering unlicensed or regulated casino-like gambling with a product dubbed PlayUp Slots+, which was based on an online historical horse racing model identical to Luckii.
The operator was legally operating in only two jurisdictions, but PlayUp Slots+ was made available in dozens of states without a license. That was enough to land the company in a bigger trouble. In Ohio, where PlayUp wanted to obtain a gaming license for offering regulated gaming services, the company was forced to shut down Slots+ and pay a hefty fine of $120,000.
Once PlayUp successfully offloads its U.S. operations to some other entity, it would mark the end of a saga for the Australian betting company in the U.S. market.