Wynn Resorts Closing WynnBET in Eight States, Keeps Nevada and Massachusetts

Wynn Resorts is dialing back its sports betting portfolio and shutting down online sportsbook WynnBET in eight states.

The company announced Friday that its platforms in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia would no longer be available for business. However, operations in Nevada and Massachusetts will continue uninterrupted, while New York and Michigan are still being reviewed.

WynnBET launched in New Jersey in 2020. A company official said that it is still optimistic about the future of sports betting, and that this is not the first step in a full-scale withdrawal from the wagering market.

Wynn owns casinos in Massachusetts and Nevada, the states where it is continuing its sports betting offerings. It is also one of the preeminent candidates for one of three casino licenses in New York, which is home to the most fruitful online sports betting market.

“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,” said Wynn CFO Julie Cameron-Doe in a statement.

Wynn previously announced that it had reached an agreement with special purpose acquisition company Austerlitz Acquisition Corporation to help grow its sports betting arm—however, that deal collapsed near the end of 2021.

The competition for marketplace dominance has also increased as the “Big Four” (FanDuel, DraftKings, BetMGM, and Caesars) have increased their hold on the market, and new companies such as Fanatics and the soon-to-launch ESPN Bet have entered the fold. 

“With our continued roll-out of product features and planned new state launches, including New York, we remain excited about WynnBET's future,” CEO of Wynn Interactive Craig Billings said.

The company won’t hand out grandiose promotions in a trend that is becoming increasingly popular in the industry. Many operators have found that enormous promo deals and bonuses are unsustainable and greatly impede the goal of hitting profitability.

“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 Cameron-Doe.

Despite WynnBET failing to find as much traction as other competitors, its land-based casino business has never been better. The company posted all-time highs for adjusted property earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) in the second quarter at its Las Vegas Strip locations and at Encore Boston Harbor, its Massachusetts facility.

Billings also said on a call last week that he believes the company is close to a breakthrough in the UAE. The company has proposed building the first regulated casino in the Arabian Peninsula called Wynn Al Marjan Island, and he believes that Wynn will soon receive licensing for the project.

Back home, other companies have recently dialed back or pulled out of the sports betting market. PointsBet sold its North American assets to the aforementioned Fanatics, while others such as MaximBet have closed up shop completely. 

Although not a closure, PENN Entertainment took over $800 million in losses to free itself of the Barstool Sportsbook (which it sold back to Barstool founder Dave Portnoy for $1) to partner with ESPN for ESPN Bet.

The next few months are expected to be a busy time of the year for all sportsbooks with the return of the NFL and, to a lesser extent, the NBA. The NFL preseason is already underway and has seen an uptick in sports betting participation.