The proposed sale is part of a broader consolidation in the US sports betting market. The top two operators, FanDuel and DraftKings, control a combined 50% of the market. The next three largest operators, BetMGM, Caesars, and Barstool, control another 42%.
PlayUp is a smaller player in the market, with a market share of just 2%. The sale to a publicly listed company will give PlayUp the resources it needs to compete with the larger operators.
Reports Say Employees Haven’t Been Paid Since June 30
However, the sale will also likely lead to job cuts at PlayUp. The company’s CEO, Daniel Simic, said the new owner will “rightsize” the business.
Former employees are claiming US employees haven’t been paid since June 30. Coincidentally, the company’s Twitter account hasn’t sent out any tweets since the last day of June.
Simic told Legal Sports Report that:
“I’m just working through person by person to work out who’s staying on and who isn’t, and who’s been working for us for the last month and who hasn’t. Some have gone missing and don’t even respond to emails. So I don’t know if they’re owed, or they’re not owed. I’m not willing to just hand out cash. And they’ve been taking advantage of PlayUp for however long, you know, there’s going to be a situation where PlayUp will be suing them for false representation that they’re working for PlayUp and haven’t been.”
Simic also stated one such employee couldn’t explain what they did for the last two months, and we’ll likely hear more such examples in the coming weeks.
FTX Fallout Blamed
This isn’t the first time we’ve heard reports of a potential buyer for the troubled betting company. A proposed sale to crypto exchange FTX went south due to the exchange’s recent legal troubles in early 2022.
That forced the Australian-based company to refocus, which led to the sale.
Impact on New Jersey Bettors
New Jersey sports bettors are likely to see the impact of the sale in the coming months.
PlayUp’s website and app will likely be rebranded, and the company’s marketing campaigns may change.
It is still too early to say what the sale’s long-term impact on New Jersey sports betting is. However, it is clear that the market is consolidating, and smaller operators like PlayUp are being squeezed out.
Here are some additional details about the sale:
- The sale is expected to close in the third quarter of 2023.
- The identity of the buyer has not been disclosed.
- The sale price is rumored to be in the range of $100 million.
- The sale will not affect PlayUp’s operations in other countries, such as Australia and Canada.
What does this mean for New Jersey sports bettors?
- The sale is likely to lead to some job cuts at PlayUp.
- The company’s website and app may be rebranded.
- PlayUp’s marketing campaigns may change.
- The long-term impact of the sale is still too early to say.
Finally, PlayUp NJ is still accepting wagers from Garden State gamblers from its website and app. Betting accounts are still accessible with deposit and withdrawal options.
New Jersey sports bettors can continue to wager with PlayUp until they no longer choose to close the account and look for another NJ online sportsbook.