Major sportsbook operator files for Chapter 11 bankruptcy

Casino bankruptcy filings on the Las Vegas Strip are extremely rare, with the last prominent one occurring over 10 years ago, when Caesars Entertainment, then-owned by Apollo Global Management and TPG Capital, filed for Chapter 11 to eliminate about $16 billion in debt in January 2015.

Smaller casino operators outside of Vegas, or even in states other than Nevada, have filed for bankruptcy more recently.

Maverick Gaming filed for bankruptcy

Privately held casino operator Maverick Gaming LLC, which owned four Northern Nevada casinos located in Elko and Wendover, Nev., 17 cardrooms in Washington state, and three casinos in Colorado, filed for Chapter 11 bankruptcy on July 14, 2025, seeking to sell its assets.

The Las Vegas-based debtor's holdings included 2,500 slot machines, 320 table games, 1,200 hotel rooms, and 30 restaurants.

Maverick Gaming's prepetition holdings:

• 4 Northern Nevada casinos located in Elko and Wendover, Nev.
• 17 cardrooms in Washington state
• 3 casinos in Colorado
• 2,500 slot machines
• 320 table games
• 1,200 hotel rooms
• 30 restaurants

Maverick faced fierce competition from tribal casinos in Washington, operational misalignments, and industry headwinds that forced the debtor to file for bankruptcy. The combined economic challenges increased pressure on its revenues and its ability to meet financial obligations and financial covenants under its prepetition credit facility.

And now, a very competitive online betting environment has forced one of the top online sports-betting companies to file for bankruptcy.

The parent company of online sports-betting operation Prime Sportsbook has filed for Chapter 11 protection, seeking to reorganize its business, Bankruptcy Observer reported.

Prime Sportsbook owner files for bankruptcy

Out The Gate, Inc. filed its petition in the U.S. Bankruptcy Court for the District of Delaware on Nov. 12, listing $1 million to $10 million in assets and $50 million to $100 million in liabilities.

The Cherry Hill, N.J.-based debtor filed for bankruptcy to restructure its balance sheet and seek a sale of its assets after failing to be profitable, Bondoro reported. The company blamed intense competition and substantial costs tied to gaming license agreements in its markets of New Jersey, Ohio, and Kentucky for its financial problems.

Out The Gate owes about $51 million in secured debt, consisting of $4 million of first-lien debt owed to Plannatech (USA) Corporation, and $47 million in second-lien debt owed to Neapeg Investment LP.

Prime Sportsbook seeks sale of company

Plannatech has agreed to provide the debtor up to $6.5 million in debtor-in-possession financing to fund the company's business operations and the sale of the company, Bondoro reported.

Plannatech plans to acquire the company, Prime Sportsbook's COO Jon Richards told SBC Americas.

“This industry appears to change on an hourly basis, and our goal is to continue operating within the licensed and regulated market while providing a fair product to the betting community,” Richards said. “We see this as the next step forward to providing a sharper betting experience for all bettors.”

The debtor's largest unsecured creditors include Spire Academy, owed $625,000; Churchill Downs Racetrack LLC, owed $250,000; AC Ocean Walk LLC, owed $241,000; and Ramp Business Corporation, owed $59,900.

Out The Gate's top creditors:

• Plannatech (USA) Corporation, owed $4 million first-lien
• Neapeg Investment LP, owed $47 million second-lien
• Spire Academy, owed $625,000 unsecured
• Churchill Downs Racetrack LLC, owed $250,000 unsecured
• AC Ocean Walk LLC, owed $241,000 unsecured
• Ramp Business Corporation, owed $59,900 unsecured

The debtor's petition indicated that no funds would be available to distribute to unsecured creditors after administrative expenses are paid.

Prime Sportsbook operates in 3 states

Prime Sportsbook is a licensed, multichannel sportsbook operator offering betting opportunities to professional and recreational players, according to the company's LinkedIn page. The sportsbook operates in regulated states that include New Jersey, Ohio, and Kentucky.

The sportsbook offers high-limit wagering, reduced juice from -110 to -108, and fast payouts, the LinkedIn page claims.

More bankruptcy:

• 34-year-old casual dining chain files for Chapter 11 bankruptcy
• Major seafood company files for Chapter 11 bankruptcy
• 55-year-old women’s fashion company files Chapter 11 bankruptcy

Prime Sportsbook launched online in Ohio in September 2023 in partnership with Geneva Sports; in New Jersey on March 31, 2024; and in Kentucky in July 2025.

Prime does not operate any brick-and-mortar retail sportsbook locations, but it indicated two years ago that it would set up a retail sportsbook at a restaurant under construction in Geneva-on-the-Lake, Ohio, outside of the Spire Institute, Sports Handle reported. Prime has not given an update on that project.

Related: Popular fashion retailer files for Chapter 11 bankruptcy