Share 
PlayUp has settled with the state of Ohio for gambling violations that will keep its sportsbook out of the Buckeye State for at least four years.
The Ohio Casino Control Commission announced Wednesday that the Australian-based company has agreed to pay $90,000 in fines and refrain from trying to enter the Ohio sports betting market for four years, due to “illegal conduct or illegal wagering.” A redacted letter from the OCCC in December indicated the activity stemmed from the PlayUp Slots+ product, which ties video slots to pari-mutuel horse racing data.
“This has been carefully reviewed in order to avoid having to go through the further hearing process,” OCCC General Counsel Andromeda Morrison told the commission before it accepted the settlement agreement Wednesday.
PlayUp Slots+ is no longer available in Ohio and is not advertised on the company’s US consumer website.
The settlement follows PlayUp’s decision not to pursue a hearing of the OCCC’s Dec. 2 notice of intent to deny it a mobile sports betting provider license application prior to the state’s Jan. 1 sports betting launch.
PlayUp Decided Against Plans for Hearing
PlayUp — which operates live mobile sports betting in Colorado and New Jersey — had initially disputed the OCCC’s claims in a statement reported by WBNS-TV on Jan. 6. That statement read:
“PlayUp received the Commission Notice for Opportunity for Hearing and is reviewing its provisions with legal counsel. At all times, PlayUp believed it was operating within the bounds of Ohio law. As noted by the Executive Director, PlayUp acted diligently to come into compliance with the Cease-and-Desist Order. PlayUp remains committed to compliance with all Ohio laws.”
By April, PlayUp had changed course. Morrison told commissioners at their monthly meeting Wednesday that PlayUp Interactive Ohio Inc. had negotiated with the Ohio Attorney General and the OCCC to settle with the state.
In addition to the $90,000 fine and inability to enter the Ohio market through at least 2017, the settlement requires PlayUp to offer restitution to Ohio consumers “who used the PlayUP platform to engage in illegal conduct or illegal wagering,” said Morrison.
“Those consumers who experienced losses will receive restitution through this process of approximately $30,000,” she told the commission today.
Ohio Sports Betting Exceeding Expectations
Sports betting revenue has exceeded expectations in Ohio so far, OCCC staff told the commission Wednesday – with licensing revenue from “Type C” sports betting kiosks at bars and restaurants over-performing so far.
Ohio has 650 more Type C kiosks than anticipated, said OCCC official Rick Anthony. That has generated $650,000 in unanticipated revenue at $1,000 per kiosk license, each good for up to three years.
Total sports betting kiosk licensing revenue has exceeded $900,000 year to date, he reported.
Overall, the five-year revenue estimate for all Ohio sports betting regulatory fees was originally $8.9 million, said Anthony. “We will be above that,” he added.
“It’s probably good that we will be above it because we know now that there are some of the smaller operators who may not renew,” he said.
Total Ohio online and retail sports betting revenue for the first two full months of operation (the only data available so far) has been impressive. OCCC data shows the state’s January handle totaled over $1.1 billion generating $208.9 million in sportsbook revenue, followed by $638.8 million in handle and $82.8 million in revenue for February.
