LAS VEGAS (KTNV) — Wynn Resorts is closing its online sports betting and iGaming platform, WynnBET, in eight states.
On Friday, the company said operations are ending in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. However, the company said operations in Nevada and Massachusetts will be unaffected. Operations in New York and Michigan are still under review.
"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," Wynn Resorts' Chief Financial Officer Julie Cameron-Doe said in a statement. "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."
WynnBET launched in 2020 in New Jersey. Between July 2020 and April 2021, it launched in four additional states and continue to grow. Wynn Resorts previously announced it would merge with Austerlitz Acquisition Corporation to continue growing the business. However, that deal fell apart in November 2021.
"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 at the time. "In light of elevated marketing and promotional spend in the sports betting industry, we are pivoting our user acquisition efforts."
The market for sports betting has become increasingly crowded. Most markets across the country include operators like DraftKings, FanDuel, Caesars Sportsbook, and BetMGM. This week, Penn Entertainment, who owns the M Resort in Henderson, and ESPN announced they were coming together to launch a sports betting platform called ESPN Bet.
According to a press release, Penn Entertainment will rebrand and relaunch as ESPN Bet this fall in 16 states where they are licensed.
"[This] allows us to take another step forward as an industry leader," said Jay Snowden, Chief Executive Officer and President of Penn Entertainment. "Together, we can utilize each other's strengths to create the type of experience that existing and new bettors will expect from both companies, and we can't wait to get started."
Penn Entertainment also had controlling interest in the sports brand Barstool. As part of the new deal, the company has been sold back to founder David Portnoy.
"The divestiture allows Barstool to return to its roots of providing unique and authentic content to its loyal audience without the restrictions associated with a publicly traded, licensed gaming company," Snowden said.
Portnoy said it's a win-win for everyone.
"PENN was able to broker an unbelievable deal with ESPN," Portnoy said. "We wish them nothing but the best."
Portnoy added that he is not interested in selling the company again.
