Wynn Resorts shutters WynnBET operations in eight US states
Casino resort operator to focus solely on omnichannel states amid “dearth” of igaming legislation, pledging greater investment internationally
Wynn Resorts has confirmed the closure of the WynnBet online sportsbook and igaming platform across eight US states amid rising marketing and customer acquisition costs.
Operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia will all cease “as soon as possible”, according to Wynn, with the company already working with regulators and partners in these states to realize this goal.
Online operations in New York, where the firm has operated since the launch of the online sports betting market in January 2022, as well as Michigan have been placed “under review” by Wynn.
The casino operator has confirmed its flagship operations in Massachusetts, where the firm operates the Encore Boston Harbor casino property and an online sports betting operation since March 2023, and Nevada will remain unaffected by the closures.
We regret to inform you that WynnBET will be closing its operations. As of August 11, 2023, WynnBET will no longer be accepting bets or allow igaming wagering in the following states AZ, CO, IN, NJ, TN, VA, LA, WV.
For more information visit: https://t.co/h9r6N9Av6L pic.twitter.com/rvT18PmBx6
— WynnBET (@WynnBET) August 11, 2023
In a message to customers, Wynn announced player accounts will be accessible for a period of 60 days to allow for the settlement of all outstanding bets and any withdrawals to take place. The operator also revealed it would contact bettors placing futures bets, to potentially facilitate their settlement.
In addition, Wynn confirmed the immediate discontinuance of all promotional campaigns.
According to Earnings+More, the operator has laid off the majority of WynnBet staff, including Wynn Interactive president Ian Williams.
Wynn has said that the closures are due to the rising costs of being an at-scale sportsbook and igaming operator in the US. The operator also cited the lack of igaming legislation across new US states as forcing an operational rethink.
Wynn Resorts CFO Julie Cameron-Doe said: “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.
“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 added.
The announcement of the closures comes just a week after Wynn released its new multi-state online casino and sports betting app across six US states, all six of which have now been earmarked for closure by the firm.
Wynn Interactive, Wynn Resorts’ online operation, recently reported a Q2 operating loss of $25.6m, with an adjusted property EBITDAR of negative $14.9m.
The Q2 results marked the firm’s third consecutive quarter of both operating and adjusted property EBITDAR losses.