North Carolina’s fledgling online sports betting market is off to a robust start, but the prospect of expanding legalized gaming further this year appears increasingly unlikely. Discussions to extend casino gambling in the state have hit a snag, with House Speaker Tim Moore indicating that last year’s legislative deadlock may impede any progress in 2024.

Legislative Stalemate Hinders Casino Expansion

In 2023, efforts to legalize commercial casino gambling, including proposals to install video lottery terminals (VLTs) in various locations such as restaurants and bars, faced significant opposition from members of the Republican party. This opposition has cast a shadow over current discussions about gaming expansion. Moore highlighted that gaming is the primary issue delaying the state’s budget.

“I do think that the conversation last year as it related to casinos has put a shadow over the discussion about updates to the lottery with VLTs and so forth,” Moore told CBS 17.

Moore initially supported Senate President pro tempore Phil Berger’s attempt to add a casino amendment to the state’s 2023-25 budget bill. Berger’s proposal aimed to create gaming licenses for multiple counties and grant casino licenses to The Cordish Companies. Berger argued that these casinos would retain legal gambling revenue within North Carolina, preventing it from flowing into neighboring states like Virginia. Estimates suggested that legalizing VLTs could generate about $1 billion in annual revenue for the state.

Despite public support for casinos, House Republicans were divided, with concerns about the discussions happening behind closed doors without public input. As a result, Moore withdrew his support for the casino bill, and Berger acknowledged in February that he would not pursue casino legislation this year, leaving the decision to the House.

Online Sports Betting Market Thrives

While casino expansion faces obstacles, North Carolina’s new online sports betting market is thriving. Launched in March, the market has seen players place over $1.3 billion in bets. In April, the first full month of operations, operators reported a handle of nearly $650 million, matching the figures from March, with $105 million in gross gaming revenue.

Promotional bets significantly contributed to the market’s early growth. In March, operators distributed over $200 million in bonus bets and promotions, which decreased to below $80 million in April. Overall, the market showed positive month-over-month growth, with sportsbooks generating $105.3 million in gross wagering revenue in April, and netting $171.7 million in revenue since the launch.

Prominent operators like bet365, BetMGM, DraftKings, ESPN Bet, Fanatics Sportsbook and FanDuel are active in the state, each partnered with a professional sports team or venue as required by state regulations. Additionally, Caesars Sportsbook operates through a partnership with the Eastern Band of Cherokee Indians.

Future Outlook

The North Carolina legislative session extends until July, but forward movement on casino expansion seems unlikely. The success of online sports betting highlights the potential for legalized gaming, yet the legislative hurdles suggest that significant changes to the state’s gaming landscape may remain on hold for now.

Source: “North Carolina casino legalization push hits roadblocks”. SBC Americas. May 28, 2024.

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PlayUp announced it would temporarily shut down its operations in New Jersey after the New Jersey Division of Gaming Enforcement (DGE) issued an order revoking the transactional waivers allowing the company to conduct sports wagering in the state. The following shutdown of PlayUp’s Colorado website and platform meant the operator no longer offered its services in the USA, further degrading its prospects.

The Operator Failed to Meet Requirements

The DGE’s decision resulted from PlayUp’s inability to provide the regulator with financial details related to its New Jersey operations. While the company complied with some requirements, it failed to present certain requested bank statements and financial information. PlayUp ignored the DGE’s initial warnings, only partially complying after the regulator threatened to revoke its license.

Several other concerns further compounded PlayUp’s unfavorable position, causing the DGE to revoke the transactional waivers allowing the operator to offer its services in New Jersey. The regulator noted that the company’s outstanding invoices, lack of leadership, and inability to comply with standards were sufficient cause to revoke its license. 

PlayUp is not permitted to transact any new internet gaming or sports wagering-related business with any New Jersey casino or racetrack.

DGE official letter to PlayUp

PlayUp must still honor its existing wagers and allow New Jersey customers to withdraw funds. The DGE’s letter states that the operator can reapply for a license anytime, following New Jersey’s existing regulations. However, the company’s dwindling US staff makes such prospects highly unlikely in the short term, meaning clients must search for another sportsbook.

PlayUp May Entirely Exit the US Market

Shortly after PlayUp’s shutdown in New Jersey, the operator suspended its services in Colorado, its remaining active US jurisdiction. The company contacted the Colorado Division of Gaming, requesting to put its app and website into maintenance mode, suspending active betting and customer deposits. Customers may still withdraw funds, but PlayUp did not disclose when its services would return online.

Such developments do not bode well for PlayUp’s US expansion plans. The operator recently withdrew its application for an Ohio sports betting license after allegations of illegal wagering. Although the company’s website states that PlayUp Iowa is “coming soon,” such prospects have mostly diminished. PlayUp CEO Daniel Simic noted that the company would slash its US division employees from 40 to 10- another worrying sign.

PlayUp suspending its New Jersey and Colorado operations may be the final nail in the embattled company’s US expansion plans. Its failed NASDAQ listing, $35 million investment from failed crypto exchange FTX and middling presence in its home Australian market pose significant challenges. As its exit from the US market looms close, PlayUp must adapt, restructure its operations and recover from its streak of setbacks.

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