Wynn Resorts To Pull Out Of Several Online Sports Betting MarketsCompany To Still Operate In Nevada, Massachusetts, New York, Michigan |
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Wynn Resorts announced a decision to close its online sports betting and casino gambling platform, WynnBET, in certain jurisdictions.
“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,” said Julie Cameron-Doe, Chief Financial Officer of Wynn Resorts.
“While we believe in the long-term prospects of iGaming, the dearth of iGaming legislation and the presence of numerous other investment opportunities available to us around the globe have led us to the decision to curtail our capital investment in WynnBET to focus primarily on those states where we maintain a physical presence,” she continued.
Working with online gambling regulators, the company will seek to cease operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia “as soon as possible.”
Operations in Nevada and Massachusetts will continue unaffected, and New York and Michigan operations remain under review.
Online gambling in the U.S. is at record levels, but the market is very competitive, with the likes of FanDuel and DraftKings dominating the online sports betting segment.
According to the American Gaming Association, nationwide, Americans wagered a record $31.11 billion on sports in Q1 2023, generating an all-time high of $2.79 billion in quarterly revenue (+70.1% year-over-year).
Compared to Q1 2022, the growth was largely driven by new market launches in Kansas, Massachusetts and Ohio.
Meanwhile, online casino gambling grossed $1.48 billion in Q1 2023, marking a 22.7 percent year-over-year revenue increase.
Sports betting is legal in over 30 states, while online casinos are legal in just a handful. Some states are considering online casino legislation in 2024, but it’s unclear if any new markets will come online.
The online sports betting space is set to see the entry of an ESPN-branded sportsbook this fall from PENN Entertainment. Additionally, Fanatics Gaming is looking to scale its U.S. sports betting business.
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