WynnBet Set to Leave Eight States in Latest Sports Betting Withdrawal
Wynn Resorts, a major player in the casino industry (NASDAQ: WYNN), is pulling back on its sports wagering operations. The company announced that it will close down WynnBet in eight states where it currently offers sports betting services. These states include Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. Interestingly, this decision comes less than two months after WynnBet debuted in West Virginia.
The decision to exit these markets was made due to a lack of legislation in those states, as well as the availability of other investment opportunities worldwide. Wynn Resorts CFO, Julie Cameron-Doe, explained this in a statement saying, "We believe in the long-term prospects of iGaming, but the absence of iGaming legislation and numerous investment opportunities available to us globally have led us to the decision to scale back our capital investment in WynnBET to primarily focus on the states where we have a physical presence."
This move is especially disappointing for WynnBet as these states represent some of the largest and fastest-growing sports betting markets in the US. For example, New Jersey is known for its massive sports betting market while others like Arizona, Louisiana, and Indiana are rapidly gaining popularity.
Looking forward, WynnBet will focus its efforts on states in which Wynn Resorts operates land-based casinos, specifically Massachusetts and Nevada. The operator's sports wagering operations are also under review in Michigan and New York, where it might open casinos in the future.
Despite the potential losses, Wynn Resorts won't be spending heavily to gain a significant market share in sports betting. This is in line with Cameron-Doe's statement that "in light of the continued requirement for outsized marketing spend through user acquisition and promotions in online sports betting, we believe there are higher and better uses of capital deployment for Wynn Resorts shareholders."
This decision marks a turning point for WynnBet, an online sportsbook that's reached a crossroads in its short history. In May 2021, Wynn Resorts announced plans to merge Wynn Interactive with a special purpose acquisition company (SPAC) owned by Bill Foley, valuing WynnBet at $3.2 billion. However, that deal was called off in November. Rumors of a possible sale of WynnBet for $500 million arose in early 2022, but the company denied these reports and no deal materialized.
While some land-based casino operators like Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM) have had success in the sports betting segment, it appears that Wynn Resorts will not be joining them. Instead, it's choosing to focus on its core business — running casino hotels and resorts. This strategy is reminiscent of Las Vegas Sands (NYSE: LVS), a direct competitor to Wynn Resorts.
Fortunately for Wynn Resorts, its offline operations are doing quite well. The company reported record adjusted property earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) in its Las Vegas Strip properties and Encore Boston Harbor in the second quarter of 2022. Additionally, its Wynn Al Marjan Island project in the United Arab Emirates (UAE) is very close to receiving a gaming license, making it the first legal casino in the Arab world.
Read also:
- Remaining contenders down to two in DFB's struggle versus Brazil.
- Law enforcement agencies in various metropolises plan expansive measures for May 1.
- Berlin Transport Senator Schreiner Steps Down over Doctorate Issues
- The Next Development in the DAZN/DFL Billion Euro Controversy
Source: www.casino.org
