PlayUp’s Issue in Ohio Might Affect It in Other States of the Country
PlayUp, which is an Australia-based gaming company, has removed an online slot-like game following the OCCC (Ohio Casino Control Commission) announcement that it intends to refuse the operator a sports betting license. The commission informed PlayUp via letter that it would not be considered “eligible or suitable” for licensure due to “one or more disqualifying violations.” The OCCC stated that PlayUp allowed illegal bettors from American bettors via its Slots+ product.
Additionally, the commission said that PlayUp had violated Ohio law by involving in misleading, deceptive, false, or improper advertising when it advertised the Slots+ product as legal gaming in the state. Ohio only launched online sports betting in January 2023.
Matt Schuler, the Executive Director at OCCC, also told commissioners that the agency sent a cease-and-desist notice to PlayUp and its technology partner, Potent Systems. Schuler said that the companies have begun to take steps to comply with the request of the commission.
A page for Slots+ has been deleted from Facebook, and mentions of the game have also been removed from the PlayUp website. PlayUp presently holds licenses in New Jersey and Colorado to provide sports betting. Additionally, it holds an online casino or iGaming license in New Jersey. It is slated for PlayUp to be a mobile partner with JACK Casino Cleveland. JACK Cleveland earlier collaborated with MaximBet Sportsbook but the sportsbook was shut down by its parent company.
Appeal Hearing Scheduled
PlayUp has the right to ask for a hearing in its case, and Jesica Franks, director of communications for the OCCC, stated that one will be held.
The hearing will allow the state and PlayUp to present evidence and cross-examine witnesses in accordance with Ohio’s process. The judge presiding over the case will then issue a report and commissioners of the OCCC will proceed to take action.
If the OCCC chooses to deny PlayUp’s license in Ohio, it may have an impact on the company’s suitability in other US states where it is applying or already holds a license. Richard Schuetz has experience as both a regulator and a gaming executive. He mentioned that for states to disclose material events in another jurisdiction, they’ll require licensees.
Issue in Ohio Is the Latest Problem for PlayUp
The pending denial for PlayUp in Ohio is not the company’s only concern. Some months ago, PlayUp publicized its intentions to merge with a SPAC (special purpose acquisition company as it intends to go public. A few days ago, IGAC (IG Acquisition Corp.), which is the SPAC, filed an 8-K report with the U.S SEC (Securities and Exchange Commission) that noted that the parties signed an updated agreement that lets IGAC consider prospects with other companies.
FTX, the now-defunct crypto exchange, made a $450 million purchase offer for PlayUp in November 2021. The deal fell through, and since then, it’s been a key issue in a lawsuit and an opposing lawsuit between PlayUp and the former CEO of its US division, Dr. Laila Mintas. What the outcome is, is yet to be seen.