PlayUp plans to unload Its U.S. operations after lackluster performances. The company will be sold to a publicly traded firm, PlayUp’s CEO recently told Legal Sports Report.
Daniel Simic acknowledged the U.S. division is headed for a major restructuring that includes no more than seven employees going to the new firm.
The unnamed buyer has enough upper management experience to operate the U.S. sports betting system, Simic said.
In addition to the lack of cash, some blamed former U.S. CEO Laila Mintas for trying to kill a deal with defunct crypto exchange FTX. In court records, Mintas said FTX pulled out because she wasn’t going to be part of the deal.
True or not? Only the players know for sure. Simic explained that PlayUp U.S. was built with the expectation of significant funding, which almost came in a lost $450 million sale to FTX. The exchange, meanwhile, dealt with plenty of well-documented issues recently and is no longer operational.
There is some positive news—PlayUp is live in Colorado and New Jersey.
“We did have big plans to launch in more states, but we were funded by FTX, as you’re probably aware, and since their collapse, we’ve had to go back and rethink our strategy,” Simic told LSR. “And that strategy is to really hone in on those states where we’re currently live now, which is New Jersey and Colorado.”
In 2022, PlayUp failed again to sell in association with a SPAC that would take the brand public, worth $350 million. The takeover folded after PlayUp blew deadlines to supply financial information.
Meantime, PlayUp last paid workers June 15, said a former employee.
“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,” Simic said.
“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.”
According to the CEO, some folks can’t explain what they did for the past two months. Simic welcomes the restructuring and new ownership.
“Everyone, including us, focused too hard on getting as many licenses as we could and trying to take over the U.S.,” Simic told LSR. “We’re not a FanDuel, we’re not a DraftKings, but we can be an important player.”
