PlayUp Sports Book Suspends Operation in New Jersey and Colorado

As the U.S. sports betting market continues to mature, it becomes easier for state regulators to identify problems. Remember, it was universally agreed that sports betting regulators were confident they could manage the sports betting community if said activities were legalized.

In recent months, regulators all over the U.S. have been going through a gut check of sorts. They have been looking at operator performance with much more scrutiny directed toward compliance issues. Furthermore, regulators are starting to "flex their muscles" when operators step out of line. Recently, PlayUp Sportsbook fell under the wrath of regulators in New Jersey and Colorado.

The Problem Starts in New Jersey

PlayUp Sportsbook is an Australia-based operator. Since the regulations are pretty tight Down Under, one would assume that PlayUp's management/ownership understands the importance of following rules. Apparently, they are struggling to follow regulations in the U.S.

The first hint of trouble came on July 13, 2023, when the PlayUp sports betting site in NJ suddenly went down for "maintenance" without explanation. It turns out there was an explanation, a troubling one at that.

PlayUp's management had just received a letter from the New Jersey Division of Gaming Enforcement (DGE). In the letter, the DGE made an immediate request for compliance information related to:

• Employee tax-withholding remittences
  
• Six months of bank statements (Jan-June 2023)
  
• Year-to-date payroll registers
  

When the response request date of July 6, 2023, came and went, the DGE contacted CEO Daniel Simic. It was during this call that Simic admitted that CFO Glenn MacPhearson was no longer in charge of the company's financial operations.

Simic was made aware of the information request and further told that anything less than an immediate response could result in non-compliance charges. After the DGE extended the deadline for one week until July 13, they still received an inadequate response from management.

It turns out that DGE has other issues with the company's behavior, including

• Unpaid invoices from the DGER
  
• Reports of rampant employee turnover
  
• Withdrawal complaints from customers
  

All of this led to the suspension of PlayUp's NJ license, accounting for the site maintenance notification.

Shutting Down in Colorado

Clearly, PlayUp is having problems as an organization. Perhaps not wanting similar scrutiny in Colorado, PlayUp proceeded to put their Colorado online sportsbook site in maintenance mode. They did so without explanation or a possible reactivation date.

For the time being, Colorado residents will not be able to place wagers through their PLayUp accounts. What they will be permitted to do is make withdrawals on request.

Should management at PlayUp be able to right the ship, they will be allowed to submit a new license application in NJ. After taking proactive steps in Colorado, it's not clear how the company would proceed if they wanted to start accepting bets again from residents in the Centennial State.

In the coming months, U.S. sports bettors might see similar actions as regulators police their respective sports betting communities. This should be viewed favorably by residents who want fairness from operators.