PlayUp Sportsbook Halts All Sports Betting Operations in New Jersey Amid Regulatory Issues

The New Jersey Division of Gaming Enforcement officially ordered PlayUp Sportsbook to cease all wagering activity in the state. The order comes as the DGE investigates issues with the embattled sportsbook surrounding tax payments. The regulatory body has accused PlayUp of failing to supply the proper documentation regarding payments to the state, especially around their payroll taxes. 

The DGE has sent several requests to PlayUp requesting financial documentation and has now pulled their transactional waiver, meaning they no longer accept bets in New Jersey. The regulators believe there are violations around tax payments, employment counts, and possibly even fraud. Those are serious accusations, but PlayUp disputes that they were forced to shut the site down.

PlayUp Sportsbook and CEO Daniel Simic have acknowledged that they are working with regulators to resolve the issue but insisted the choice to shut the site down was theirs. PlayUp shared that they want to upgrade and improve the site, so they voluntarily paused betting activity.

"During this time, you will be able to access your account and withdraw funds, should you wish to do so," PlayUp's NJ site states. "The reason for this change is our strong commitment to transforming our product offering and streamlining our services into an unparalleled sports betting experience."

PlayUp’s Financials Continues to Cause Problems

Things have been going south for PlayUp Sportsbook since their failed partnership with the infamous FTX. The Australian-based operator has been looking to exit the market but has struggled to find a buyer since their deal with IG Acquisitions fell apart due to issues with financial documentation. While they have a deal in place with an un-named publicly traded company, these regulatory issues could jeopardize that.

According to PlayUp, their issues surrounding financial documentation are due to their lack of a US finance department. They claim to use third parties to get the needed US documents, which is the cause of these delays. The operator also requested to shutter their Colorado sportsbooks for maintenance, though they are also having regulatory issues there as well.

While regulators do not discuss active investigations, it seems that PlayUp may face significant penalties in the near future.