In 2021, PlayUp secured an operational license from the New Jersey Division of Gaming Enforcement thus allowing it to set up in the country’s second largest sports betting market. New Jersey’s launch came after PlayUp was granted a similar licence in Colorado, where it launched its sports betting app first.
As you can image, this was a huge milestone for the new operator for PlayUp, marking its entry into one of the largest and most lucrative sports betting markets in the United States. The move provided PlayUp with a valuable opportunity to expand its presence and attract a wider audience of sports enthusiasts and bettors.
The launch of PlayUp with approval from both Colorado and New Jersey marked a pivotal moment for the company, setting the stage for its ambitious expansion plans across the United States. With its successful entry into two prominent sports betting states, PlayUp demonstrated its ability to navigate complex regulatory landscapes and secure operational licenses in highly competitive markets.
The approval from Colorado and New Jersey served as a positive endorsement of PlayUp’s business model and compliance standards, bolstering its credibility and reputation among regulators in other states. Armed with this endorsement, PlayUp was well-positioned to pursue further expansion opportunities and replicate its success in additional jurisdictions.
The aggressive growth plans outlined by PlayUp underscored its commitment to becoming a leading player in the US sports betting market. By leveraging its proven track record, technological capabilities, and strategic partnerships, PlayUp aimed to capitalize on the growing demand for online sports betting and establish a strong presence in key states across the country.
Indeed, as a fully online sports betting operator, PlayUp recognized the immense potential of the digital betting market. With a growing number of bettors preferring the convenience and accessibility of online platforms, PlayUp aimed to capitalize on this trend and establish itself as a premier destination for online sports wagering.
By operating exclusively online, PlayUp sought to leverage its agility and flexibility to adapt to evolving market dynamics and consumer preferences. With a focus on user experience, innovative features, and cutting-edge technology, PlayUp aimed to differentiate itself from traditional brick-and-mortar sportsbooks and capture a significant share of the online betting market.
To boost its presence in New Jersey even further, PlayUp even announced a partnership with the New Jersey Devils. The partnership between PlayUp and the New Jersey Devils marked a strategic move aimed at enhancing PlayUp’s brand visibility and market penetration in the Garden State.
By aligning with a prominent sports franchise like the New Jersey Devils, PlayUp sought to leverage the team’s loyal fan base and strong regional presence to drive awareness and engagement for its online sports betting platform.
Through the partnership, PlayUp gained access to various marketing and promotional opportunities, including in-arena signage, digital advertising, social media campaigns, and exclusive fan experiences. By associating itself with the Devils, PlayUp aimed to establish credibility and trust among New Jersey sports fans, positioning itself as a trusted and reputable sports betting provider in the highly competitive market.
Additionally, the partnership allowed PlayUp to tap into the Devils’ extensive network of partners, sponsors, and affiliates, opening up new avenues for customer acquisition and brand exposure. By leveraging the Devils’ platform and resources, PlayUp aimed to accelerate its growth trajectory in New Jersey and solidify its position as a leading online sports betting destination in the state.
PlayUp’s strategic expansion plans extended beyond sports betting, as the company aimed to introduce an iGaming product offering to complement its existing portfolio. By diversifying its offerings to include online casino games, PlayUp sought to cater to a broader audience of players and capitalize on the growing demand for digital gaming experiences.
With its sights set on regulatory approval, PlayUp was confident in its ability to navigate the licensing process and secure the necessary permits to launch its iGaming platform. The company’s commitment to regulatory compliance and responsible gaming practices positioned it well to enter the competitive online casino market in New Jersey.
In addition to iGaming, PlayUp recognized the potential of New Jersey’s fixed odds market for horse racing enthusiasts. By offering a compelling selection of horse racing betting options, PlayUp aimed to tap into the state’s rich tradition of horse racing and attract fans seeking a premium betting experience.
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The fall of PlayUp
PlayUp’s decision to shut down its platform in Colorado reflects the challenges the company faced in maintaining profitability amid intensifying competition and regulatory scrutiny. The announcement of the platform closure came on the heels of PlayUp’s license revocation in New Jersey, signaling ongoing concerns about the operator’s viability in key markets.
The Colorado Division of Gaming was notified of PlayUp’s intention to cease operations in the state, marking a significant development in the company’s tumultuous journey. The decision to cease betting activities in Colorado underscores the depth of PlayUp’s financial struggles and its inability to sustain operations in a fiercely competitive market environment.
In New Jersey, the Division of Gaming also acknowledged PlayUp’s request to transition its site into maintenance mode highlighting PlayUp’s financial woes. While players were permitted to make withdrawals from their accounts during this period, the move effectively stopped all betting activities on the platform, signaling a setback for PlayUp’s ambitions in the Colorado and New Jersey markets.
In New Jersey, the revocation followed the DGE’s request for financial information, including payroll and tax records, amid reports of unpaid staff wages. PlayUp’s failure to meet the deadline set by the DGE resulted in the suspension of its license, leading to the inactivity of the PlayUp site in New Jersey.
At the onset of 2024, PlayUp found itself in familiar territory, seeking relief from New Jersey gaming regulators. The Division of Gaming Enforcement responded by granting PlayUp’s request for a 30-day extension, enabling Daniel Simic to retain his position as the head of the New Jersey office.
In his capacity as the company’s global chief executive officer, Daniel Simic temporarily assumed the role in the Garden State with specific responsibilities, chiefly focusing on making required payments, including those owed to gamblers. This move aligns with PlayUp’s strategic efforts to restructure its operations in New Jersey’s online casino and sports betting industries, ensuring compliance with regulatory obligations and facilitating the resolution of outstanding financial matters.
In 2022, PlayUp found itself on the brink of being acquired by a Special Purpose Acquisition Company (SPAC), a move that would have facilitated the company’s transition to becoming publicly traded. However, this anticipated deal ultimately collapsed due to missed filing deadlines, thwarting PlayUp’s plans for a significant strategic shift in its corporate structure.
Final Thoughts
PlayUp’s journey in the US market, marked by its ambitious expansion plans and subsequent setbacks, highlights the challenges and complexities inherent in the online gambling industry. Despite securing operational licenses in key states like Colorado and New Jersey, PlayUp encountered difficulties in maintaining profitability and compliance with regulatory requirements, leading to the suspension of its operations in these markets.
As PlayUp navigates the evolving landscape of online gambling, its story serves as a cautionary tale about the importance of financial sustainability, regulatory compliance, and strategic decision-making in the highly competitive US sports betting market.
