Lessons from the Restructuring of an Online Sports Betting Company

By: George Calhoun

The U.S. has seen numerous casino bankruptcies, including, most recently, Maverick Gaming in July 2025. What it has not seen, until now, is the bankruptcy of an online sportsbook. Previously, when companies exited a state, they cut deals with as many creditors as possible and just left the state (or the United States). Examples of this in recent years include Betfred, Betway, Unibet, and in some states WynnBet. Because some of the failed online offerings were the products of established land-based operators, they typically cut deals and pulled out of markets without formal restructuring proceedings. What has not happened on any real scale is the bankruptcy and sale of assets of an operating sportsbook. OTG changed that.

OTG filed a Chapter 11 bankruptcy in Delaware on November 12, 2025. As announced, it intended to sell its assets and/or shares as part of an effort to restructure unfavorable contracts and streamline costs, while continuing to operate in the ordinary course. Plannatech USA was identified as a DIP Lender and stalking horse bidder. Ifrah Law represents Plannatech in the bankruptcy proceedings.

Selling a sportsbook operation is not easy. The company faced two major issues: (1) unfavorable market access agreements, and (2) heavy regulation that complicates the typical treatment of bankruptcy contracts. In a usual bankruptcy, a debtor can freely reject or assume and assign its contracts. Under state gaming regulations, however, certain contracts may not be assignable or the regulator’s consent is required. Similarly, any purchaser of sportsbook assets (assuming they intend to operate as such) must itself be licensed in each respective state or become licensed. This drastically limits the ability of a debtor sportsbook to sell its business as a going concern. Although bankruptcy allows a debtor to reject unfavorable contracts, some level of cooperation with market access providers is necessary to allow an online sportsbook to continue to operate.

As a result, communication and cooperation with the regulators and contract parties is paramount to a successful restructuring of this type of company. Moreover, the buyer of any assets must be prepared to provide regulators time to complete their review process.

Player confidence and the security of player funds are equally important. Bankruptcy often disrupts business practices, but maintaining segregated player accounts is particularly important for a sportsbook, both for regulatory reasons and to maintain customer loyalty and confidence.

OTG’s plan closed yesterday and Plannatech is now the 100% owner of OTG and is folding OTG’s operations into its U.S. offerings. The case has provided useful lessons for bankruptcy and gaming professionals. OTG reached out to regulators and its contract partners to ensure a cooperative process. It entered into interim agreements with its existing market access providers while simultaneously pursuing more favorable deals. These steps were crucial to its successful reorganization. Indeed, Judge Karen Owens of the United States Bankruptcy Court in Delaware complimented the parties on a conflict-free case in which she had held only one hearing prior to confirmation. In short, a well-designed plan makes reorganization feasible even in today’s highly competitive market. But to have a successful case, the debtor must have a strategy going in and be able to get regulators on board as early as possible.