They Are Dropping Like Flies: Colorado Sports Betting Collapse

The state of Colorado witnessed three of its licensed sports betting companies cease operating over a one week period.

PlayUp was expected to close after New Jersey revoked that company's license in the Garden State.

Maverick Sportsbook and Sky Ute Sportsbook shuttered their apps and retail sportsbooks last week.

The state still has 21 sportsbooks in operation following a peak of 26.

New Jersey regulators officially shut down PlayUp Thursday just minutes after Gambling911.com reported the sportsbook was no longer able to accept new deposits.  The company reportedly owes over $100,000 in payouts to customers.

The Division of Gaming Enforcement (DGE) confirmed its decision to SBC Thursday afternoon.

“The Division of Gaming Enforcement (DGE) issued a letter order yesterday revoking the transactional waivers that had allowed PlayUp to conduct sports wagering in New Jersey. Patrons will be able to access to their funds and can withdraw them from the site.  Additionally, PlayUp is obligated to pay out any pending wagers, while no new wagers can be accepted. We encourage patrons to contact DGE at info@njdge.org if they have any concerns or require further assistance,” a DGE spokesperson told SBC Americas.

The DGE revealed that PlayUp was ordered to provide payroll and payroll tax information as well as select bank statements from 2023 but failed to do so.

SBC reported:

In the three-page letter addressed to PlayUp CEO Daniel Simic and dated July 19, DGE Director David Rebuck informed him of the company’s revocation of the company’s transactional waivers with Freehold Raceway and Amelco, PlayUp’s platform provider, to offer sports betting in the state.

It's not immediately clear how customers owed money will be made whole at this time.  Employees of the company also claim they have not been paid.

The news comes one week after PlayUp Sportsbook claimed it was going public through an acquisition.

- Aaron Goldstein, Gambling911.com