Wynn Resorts, Limited has revealed its strategic decision to discontinue its online sports betting platform, WynnBET, in various regions.
The move comes amidst rising marketing costs linked to user acquisition and promotions in the online sports betting realm. “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,” remarked Julie Cameron-Doe, the CFO of Wynn Resorts.
Despite Wynn Resorts’ optimism about the long-term potential of iGaming, a combination of limited iGaming legislation and the abundance of global investment opportunities has led the company to recalibrate its investment in WynnBET. They plan to primarily concentrate on states where they already have a brick-and-mortar presence.
The company has initiated collaborations with regulators and will soon cease WynnBET operations in several states, including Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. Nevertheless, operations in Massachusetts and Nevada will persist as usual. The future of operations in New York and Michigan is still under consideration.