Prime Sportsbook Files Chapter 11 Bankruptcy Ahead of Planned Plannatech Acquisition

The filing occurred just prior to a planned acquisition by its current technology provider, Plannatech (or Plannatech USA). Prime Sportsbook intends to continue all operations without interruption in the three states where it is licensed.

Model Failure and Market Realities

Prime Sportsbook intentionally targeted professional bettors (known as “sharp bettors”), a high-volume, low-margin user base that many larger operators restrict or ban. Co-founder Joe Brennan Jr. acknowledged that this model led to “razor-thin or non-existent” operating margins.

The company’s financial performance showed the challenge of this strategy:

• In 2024, the company posted a negative hold percentage of -1.16% on over $84 million in wagers.
• In 2025, the hold percentage improved but remained low at 1.16% on wagers exceeding $70 million.

This difficult financial position was compounded by regulatory changes, notably a major tax increase in New Jersey, Prime’s “homegrown” state, to 19.75% of gross gaming revenue. Brennan noted that this tax hike “really cuts into our profitability and ability to pay for operations out of cash flow.”

The Chapter 11 “Reset” and Acquisition

The Chapter 11 filing allows Prime Sportsbook to continue operating while restructuring its finances. The company is actively looking to reduce unnecessary costs, rebuild its structure, and bring in new investors. This aims to adjust the company’s expenses, including initial high-cost agreements known as “boomtown costs,” to fit current market realities.

COO Jon Richards framed the bankruptcy as a necessary step, stating, “This is not the end, it’s the reset we needed.” He confirmed the move is aimed at “continuing operating within the licensed and regulated market while providing a fair product to the betting community.”

The restructuring is designed to clear the path for the planned takeover by Plannatech. Plannatech is a B2B technology vendor that also operates its own betting brands, such as BetCris in Arizona.

Customer Funds Remain Secure

Despite the bankruptcy filing, Prime Sportsbook guaranteed that customer funds and operations would be unaffected. The company, which operates in Ohio, New Jersey, and Kentucky, confirmed that there would be “not one second of downtime.”

In a direct message to customers, the company provided explicit assurances: “your balance, pending wagers, and future winnings are all 100% secure and guaranteed.” The management emphasized that their core identity remains unchanged, with no intention of limiting or excluding their target professional clientele.

Brennan reiterated the company’s commitment to its founding mission, stating, “Prime is not going to start limiting guys or kicking guys out.” However, he also acknowledged the long-term need to find ways to increase customer diversity and improve the hold percentage for sustainable profitability.