WynnBET leaves Massachusetts, sports betting app may die
Wynn Resorts (NASDAQ: WYNN )'s WynnBET is exiting Massachusetts. This is the latest sign that sports betting mobile apps may be slowly dying.
WynnBET plans to ask the commission for approval to shut down its online sports betting operations in the state, according to an agenda for Thursday's Massachusetts Gaming Commission (MGC) meeting.
Notification of WynnBET’s Intention to Cease Operations Pursuant to 205 CMR 258, including Request for Approval of Cessation Plan and Request for Exemption from 205 CMR 258.01(1),” according to the MGC agenda for the January 1-February meeting.
The MGC will also consider a similar application on the same day from sports betting startup Betr, co-founded by Joey Levy and Jake Paul.
WynnBET may be on borrowed time
News of WynnBET's exit from Massachusetts comes about six months after the operator announced it was working with regulators in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia.
At the time, parent company Wynn Resorts said it would focus WynnBET's operations in the states where it operates brick-and-mortar casinos, namely Massachusetts and Nevada. However, market conditions are changing, and although WynnBET is the first licensed online sportsbook in Massachusetts and Encore Boston Harbor is booming, neither factor appears to be enough to keep WynnBET afloat in the state.
Last August, when Wynn announced it was exiting eight states, it added that WynnBET operations in Michigan and New York would also come under review. After all but eliminating Massachusetts from online sports betting’s offerings, Michigan could be next. Because there's no way Wynn could operate a brick-and-mortar casino there.
Things may be different in New York, where the Las Vegas-based gaming company is a strong contender to win one of three in-state casino licenses in the fourth-largest state. But even that may not be enough to keep WynnBET afloat. In Massachusetts, retail sports betting will continue to be available through Encore Boston Harbor brick-and-mortar locations.
Things shouldn’t be like this
To its credit, and perhaps to its detriment, Wynn has long said it won't engage in a monetary "arms race" to attract sports betting customers. Therefore, operators prudently save money. But WynnBET has also struggled to gain sufficient market share in the states where it operates.
There was a time when the prospects for Internet gaming companies were enticing. In May 2021, Wynn Interactive announced it would merge with a blank-check company that valued the online gaming company at $3.2 billion. But the deal failed in November of the same year.
There were rumors in early 2022 that Wynn would "acquire its digital gaming division" for $500 million, but no deal was ultimately concluded. Now it looks like WynnBET has reached its last resort and the parent company will not receive any compensation.
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Source: www.casino.org
