In the context of market turbulence and stricter regulation, the Australian gambling industry is facing accelerated integration. Sources say that the troubled PlayUp is in deep talks with the emerging Brisbane operator CrossBet, and a merger or asset acquisition agreement is expected to be reached within two weeks. This potential deal not only concerns the fate of the two companies but also reflects the survival pressures faced by medium-sized gambling merchants in a highly competitive market.
PlayUp was once celebrated for acquiring multiple Australian brands and entering the US market, but its expansion strategy has faced setbacks: losing its license in the US, encountering unpaid wages and supplier debt crises, and even getting involved in legal disputes due to the collapse of a $450 million acquisition deal with FTX. In 2024, it was fined a record amount for illegal advertising in its home country, damaging both its reputation and finances.
In contrast, CrossBet, established in 2018, has stood out due to its technology-driven and robust expansion. Its collaboration with BetMakers has enabled it to quickly expand into the Australian and Canadian markets, and it has enhanced its brand influence through sponsorships in rugby, golf, and other sports.
Industry analysts believe that the AU$31.5 billion Australian gambling market is facing a wave of consolidation, with giants like Sportsbet and Tabcorp dominating due to their scale and compliance advantages. Smaller players will struggle to survive unless they seek partnerships or sell assets.
If the transaction is completed, CrossBet will leverage PlayUp's diversified product portfolio to expand its market, while PlayUp could potentially rejuvenate itself by utilizing CrossBet's compliance and technological advantages. Regardless of the outcome, this maneuver highlights that the Australian gambling industry is moving towards a new phase of "scalability, compliance, and technologization."
