In the newest twist at PlayUp, the Australian-based sports betting firm appointed Dennis Drazin as its new chairman December 14.
Drazin replaces Dr. Laila Mintas, who PlayUp has sued for breach of contract, according to CDC Gaming Reports.
Drazin, chairman and CEO of Darby Development, the owners of Monmouth Park, a racetrack in Central New Jersey, is a lawyer with Drazin and Warshaw. He chaired the New Jersey Racing Commission In the past and helped lead the legal team that overturned the sports betting ban.
“It has been incredibly rewarding to watch the significant growth of PlayUp in recent months,” Drazin said in a statement. “I’m extremely encouraged by the strong performance of the business, particularly within New Jersey where we have made substantial progress in a short period of time amongst what may be the most competitive market in the world. I look forward to working directly with the team to scale our operations, grow our market presence and accelerate our ambitious plans to further our rapid growth across both the U.S. and Australia.”
Now about Drazin’s predecessor.
According to US Bets, PlayUp filed its lawsuit against Mintas in Nevada on November 30. The suit alleges that Mintas committed improper actions against PlayUp by not negotiating a contract extension. Mintas has denied the allegations.
In a press release, PlayUp stated that while litigation “is undesirable the steps were necessary to safeguard the interests of PlayUp.” The company disputed comments by Mintas concerning the proceedings and said it would have no further to say outside of court.
An alleged attempt to inflict irreparable damages led to a restraining order against Mintas, hired as CEO of the U.S. division in July 2020. But negotiations for a contract extension broke down.
The allegations charge that Mintas contacted Sam Bankman-Fried, owner of FTX, and informed him of a perceived management conflict thus resulting in the failure of the sale of PlayUp to FTX.
Mintas is further accused of threatening to alert gaming regulators in the U.S. with false statements in the hopes they would terminate her license.
These and other injurious statements could cause PlayUp “to be placed into liquidation or bankruptcy,” according to the lawsuit.
In a written response to US Bets Mintas denied the allegations, noting she is a major investor and shareholder in the company. “It makes no sense that I would have made any of those comments that are quoted in the filing or tried to destroy a deal to sell PlayUp as I would have benefited from that as well as all other shareholders,” she wrote.
According to the lawsuit: “…Dr. Mintas attended monthly board meetings with PlayUp during which time all the financial statements and affairs of PlayUp are discussed, and during which copies of the financial records of PlayUp are made available to her.
“Additionally, Dr. Mintas was provided with any information or records she requests either on the same day, or the next day by the management of PlayUp, and she otherwise has open access to where all records of PlayUp are held and available in real time.”
Based on Mintas alleged conduct and threats, PlayUp believes she has the means to damage the company.
“Mintas has also communicated an intent to work directly with FTX in violation of the non-competition provision in her agreement.”
In response, Mintas said “all the claims mentioned in the filing are wrong, and my lawyers are working on filing shortly my response to those claims to tell the true story based on written evidence.”
Mintas says she built the company’s U.S. business “from scratch,” creating a company valuation of more than $400 million for the U.S. market. The court will receive facts, she said, describing why FTX rejected the potential deal with PlayUp, with “reasons on the Australian side of the leadership team as the deal breaker.”
U.S. District Court Judge Gloria Navarro on December 3 wrote about the temporary restraining order:
“Given the timing and sequence of events, and without the benefit of counterevidence, the Court can reasonably infer that defendant intends to continually disparage plaintiff in the course of carrying out her threats to harm plaintiff’s reputation and standing. … On November 10, 2011, defendant threatened to ‘burn PlayUp to the ground.’ … The Court can infer that defendant carried out her threats to harm PlayUp’s reputation, standing, and goodwill.”
PlayUp charges that Mintas wanted to replace company founder Daniel Simic as global CEO, double her salary to $1 million, and increase her stake in the company to 15 percent.
