PlayUp has withdrawn its application for an online Ohio sports betting license.
The decision comes as part of a settlement agreement between the OH sports betting operator hopeful and the Ohio Casino Control Commission over an illegal gambling violation.
The settlement agreement requires PlayUp to pay $120,000 in combined fines. The company is also not allowed to apply for a gaming license in Ohio for four years.
Why PlayUp got in trouble
According to the OCCC, PlayUp violated state laws when it accepted prohibited wagers from a third-party product called Slots+ to individuals located in Ohio after June 2021.
Ohioans wagered on “slots, lottery, virtual sports, match 3 and scratchers.”
PlayUp also engaged in “false, deceptive, misleading, or otherwise impermissible advertising by advertising the Slots+ product as legal gaming in the state of Ohio.”
The decision to offer the product was made by an executive that is no longer with the operator, per PlayUp.
OH sports betting fines levied
The settlement includes PlayUp paying a $90,000 fine, and not re-applying for a gaming-related license in Ohio for four years.
According to a spokesperson, PlayUp will also pay approximately $30,000 in restitution to Ohio customers who experienced losses.
The agreement requires PlayUp to provide state regulators with confirmation that restitution has been made, and a list of amounts paid. In cases where restitution to an Ohio customer is not possible, those funds will be reported as unclaimed.
OH sports betting violation timeline
The OCCC discovered the illegal gambling activity during PlayUP’s suitability review.
PlayUp responded by requesting a hearing on the matter, but ultimately sought to resolve the matter without one.
State regulators have previously come down on multiple operators including BetMGM, Caesars and DraftKings for advertising violations.
The OCCC has levied over $1 million in fines to various sports betting entities for targeting persons under 21.