Wynn Interactive Q2 turnover drops 3% as EBITDA losses slow
WynnBET operator pins hopes on Massachusetts sportsbook launch despite operating losses hitting $162m in H1 2022
Wynn Interactive has reported a quarter-on-quarter (QoQ) turnover decline of 3% during Q2 2022, with turnover falling to $704m thanks to a weaker sports calendar during the period.
Releasing its financial update for Q2, as part of the wider Wynn Resorts update, Wynn Interactive confirmed a reduction in its EBITDA losses from $32m in Q1 2022 to $21m in the second quarter.
Wynn Interactive’s operating income fell 5% year on year (YoY) during Q2 to a loss of $57.3m, widening to an operating loss of $162m during H1 2022.
At a wider group level, Wynn Resorts reported an 8% YoY drop in revenue to $908.8m in Q2, while company adjusted property EBITDA fell to $179.2m in the same period.
Speaking as part of Wynn Resorts’ Q2 2022 earnings call, CEO Craig Billings acknowledged the losses but hailed the group’s strategy of reducing its EBITDA losses by taking a longer-term shareholder-friendly view of the market.
In line with remarks made during previous quarters, Billings noted the possibilities which might arise from Wynn launching both retail and online sports betting in Massachusetts, where the firm operates Encore Boston Harbour, one of its flagship casino properties in the US.
“We are looking forward to the potential for a significant catalyst for WynnBET in Massachusetts both in digital and retail sports betting,” Billings said.
“We are continuing to launch in additional states and we’re continuing to put the foundations in place to grow that business over time as our business grows, but Massachusetts for us is a focus for obvious reasons as we have the land-based presence there.
“You’ve seen market share levels from fellow market participants in places where they have brick-and-mortar presence, and it obviously warrants prioritizing Massachusetts,” he added.
“Massachusetts was always an important good bootstrapping event for WynnBET and for Wynn Interactive’s igaming business,” Billings concluded.
Encore Boston Harbor revenue amounted to $210.2m during Q2 2022, increasing by $45m from the same period in 2021, while the property’s adjusted EBITDA also rose sharply during Q2 to $63.7m.
Earlier this month, Massachusetts legislators agreed an eleventh-hour deal to regulate both online and retail sports betting in a landmark compromise deal between Bay State senators and its elected representatives.
Under the approved legislation, which has still to be signed off by Governor Charlie Baker, mobile sportsbooks will be taxed at 20%, with retail betting taxed at 15%.
In-person wagering will be allowed at casinos, racetracks, and simulcast racing facilities. Each of the state’s casinos can operate up to two mobile betting skins, with racing facilities allowed one mobile skin.
A further seven so-called untethered licenses will be made available to mobile operators.
Elsewhere, the WynnBET sportsbook has agreed an in-game sponsorship deal with sports broadcasting network SportsGrid to sponsor its In-Game Live All Access Saturday edition show.
The content-led sponsorship deal will include coverage focusing on all major US sports, featuring insights from WynnBET’s trading team.
In addition, the WynnBET contributors will provide a comprehensive review of the upcoming games, odds, and moneylines.
Appearances from the trading room will include consumer promotions and feature special events coverage, such as the World Series, FIFA World Cup, and primetime college football games.
“We are extremely pleased to welcome WynnBET as a sponsor to the network’s live weekend coverage of games and special events,” SportsGrid VP of business development and marketing Jordan Bayroff explained.
“WynnBET’s traders have demonstrated a record of providing insightful perspective and reporting across WynnBET’s platforms.
“The opportunity to integrate the WynnBET trading team of experts as contributors during the In-Game Live All Access weekend coverage enhances the viewer experience providing informative, insightful, and real-time perspective,” Bayroff added.
The sponsorship campaign will be supported by a social media campaign across SportsGrid’s and WynnBET’s social media platforms.