Wynn Shuts Down Sportsbook Operations in 8 US Jurisdictions
LISTEN TO THIS ARTICLE:Wynn Resorts Ltd. has announced its decision to cease operations in eight out of the 12 US jurisdictions where its online betting division WynnBet is currently available. The states include Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia.
Wynn will maintain its online presence in markets where they have physical properties, including Massachusetts and Nevada. Additionally, the company will continue its operations in New York. However, in Michigan, WynnBet will discontinue its sports betting product, while the live casino offering will remain accessible for the time being.
According to the company, it pulled out from the aforementioned jurisdictions due to the considerable expenses required for marketing to attract sports betting customers as well as the absence of states legalizing online casino games like blackjack and roulette, which could enhance the profitability of the business.
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.
Not the First Case
With the development, WynnBet joins a growing list of sports-betting apps that have withdrawn from the highly competitive American gambling landscape. In July, Fox Corp. announced the shutdown of Fox Bet, which was a joint venture with Flutter Entertainment Plc.
Similarly, in the previous year, MaximBet, a project involving a gaming company and a men's magazine, ceased operations. Additionally, FuboTV Inc also closed its sportsbook.
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