Posting date: July 12, 20,23, 02h08h
Last updated: July 12, 2023 at 03:26h
Australia-based PlayUp is close to selling its US operations to an unidentified publicly company traded and will embark upon a significant restructuring, including sizable layoffs.
broke the news Wednesday on behalf of PlayUp CEO Daniel Simic. As was the case with PointsBet’s (OTC: PBTHF) recently announced sale of its US business, PlayUp’s Australian operations won’t be affected by the upcoming transaction.Simic didn’t mention a sale price for PlayUp’s US unit in the interview, but he noted it’s likely that just seven staffers will make the transition to the acquiring firm. According to the
Legal Sport Report, PlayUp offers online sports betting in Colorado and New Jersey. PlayUp’s US Operations End of Long SagaShould PlayUp close a deal with its US operations it would be the end of a long saga that has lasted for years. Talks were rife that FTX wanted to acquire PlayUp for $450 million. However, the deal allegedly fell through because the then-CEO Dr. Laila mintas refused to stay with the company after the acquisition. PlayUp later filed litigation in federal court against Mintas, alleging she bashed her former employer to FTX.
FTX ultimately collapsed last November amid allegations that CEO Sam Bankman-Fried and others defrauded investors, sparking liquidity and solvency concerns that were eventually proven accurate.
Last September, PlayUp announced plans to go public via a reverse merger with IG Acquisition Corp., a special purpose acquisition company (SPAC) controlled by Bradley Tusk. The deal collapsed in January when IG Acquisition claimed that PlayUp had failed to submit material financial documents the month before. As Simic admitted to
Legal Sports report
in the US PlayUp is not DraftKings nor FanDuel. However, he thinks the company will add value to the suitor because of its established expertise in the wagering business. Additionally, the gaming company holds internet casino rights in Iowa, New Jersey, and Pennsylvania.
In April, PlayUp settled a case with the Ohio Casino Control Commission (OCCC), paying a $120K penalty while agreeing to not apply for a gaming license in that state for four years.