PlayUp Nears CrossBet Deal Amidst Challenges

PlayUp Approaches Possible Partnership with CrossBet

PlayUp, once a prominent player in the Australian betting scene, appears to be on the cusp of a major development. Industry insiders suggest that the company is close to reaching an agreement with fellow Australian operator CrossBet. This collaboration could take the form of either a full merger or the sale of selected assets. Sources familiar with the ongoing talks indicate that the deal could be finalized within the forthcoming two weeks.

Ongoing Legal Challenges Faced by PlayUp

Recent reports from industry news highlight that neither PlayUp nor CrossBet have publicly acknowledged the negotiations. The information comes from anonymous sources well-informed about the discussions. Such a merger or acquisition could represent a significant turning point for PlayUp following a series of legal difficulties, regulatory penalties, and operational hurdles.

One of the most damaging conflicts for PlayUp involves a legal battle with its former US CEO, Dr. Laila Mintas. The dispute arose from a failed $450 million acquisition deal with cryptocurrency exchange FTX. PlayUp alleges that the former executive disrupted the transaction, a claim Mintas strongly disputes.

Mintas insists she met and exceeded all her responsibilities and has responded with a countersuit citing defamation, contract breaches, and bad faith actions. Additionally, she is seeking to reclaim an 11% ownership share she asserts was promised in her contract after investing $1.2 million of her personal funds into the business.

Potential Deal Might Signal a Fresh Start

Adding to PlayUp’s challenges were regulatory penalties during 2023, including a substantial fine nearing AUD 600,000 in New South Wales for posting 33 illegal gambling advertisements. These ads violated local laws that ban inducements for account registration and prohibit advertising to non-account holders.

PlayUp’s efforts to expand in the United States have also faced setbacks. The company ceased its operations in New Jersey after losing regulatory approvals and shortly afterward shuttered its Colorado platform, impeding its plans for US expansion. Ambitions to grow into other states like Pennsylvania are reportedly paused.

In this context, the possible deal with CrossBet could provide a much-needed opportunity for PlayUp to stabilize and realign its strategy, particularly within its core Australian market. This move could be vital as the industry experiences increasing consolidation, with operators seeking greater scale to maintain competitiveness and sustainability.