Wynn Resorts to Close WynnBet Operations in Most Markets

Wynn Resorts has announced its decision to shut down online sports betting and iGaming operations in eight markets, with the exception of Nevada and Massachusetts where the company operates physical casinos.

WynnBet shutting down in multiple states

The affected markets include Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. The company cited the need for significant marketing spend in these markets as a reason for the closure.

Wynn Resorts had previously invested $80 million in BetBull in 2018, creating its Wynn Interactive division. Despite planning to go public in a SPAC deal in 2021, the plans fell through. In February 2021, Wynn had expressed interest in the sports betting market, but later scaled back marketing efforts to conserve cash.

The focus remains on iGaming

WynnBet’s focus will now shift to iGaming, albeit at a more measured pace. Wynn’s Chief Financial Officer, Julie Cameron-Doe, stated that iGaming remains a focus, but due to the lack of iGaming legislation in some states and other investment opportunities globally, the company will curtail its capital investment in WynnBet and prioritize states where it has a physical presence.

The decision will impact WynnBet’s market share, which had been relatively modest in the markets affected. The company is still reviewing its operations in New York and Michigan. The review of New York operations could open the door for other operators like Penn Entertainment’s ESPN Bet to enter the market, as WynnBet had only garnered a small share of the market.

Despite this change in strategy, WynnBet is expected to maintain its focus on iGaming in certain states, particularly those where it has established a stronger presence, like Michigan.