The platform, WynnBET, will be shut down “as soon as possible” in eight states — Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia — Wynn Resorts said in a Friday (Aug. 11) press release. The timing of the closures is subject to the company working with regulators and patrons.
WynnBET will continue operating as normal in Nevada and Massachusetts, while its future in New York and Michigan is “under review,” the company added in the release.
“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,” Wynn Resorts Chief Financial Officer Julie Cameron-Doe said in the release.
“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,” Cameron-Doe added.
The sports betting industry is dominated by FanDuel and DraftKings, leaving other companies to reconsider their positions, Bloomberg reported Friday.
Wynn owns casinos in the two states in which it had decided to continue operating WynnBET — Nevada and Massachusetts — according to the report.
The platform had less than a 1% share of the online sports betting market, the report said.
Wynn was preceded in this move by some other competitors in this space that have shut down or announced plans to do so, including the Fox Bet app, the MaximBet app and FuboTV’s sportsbook, per the report.
It was reported in October 2021 that FanDuel CEO Amy Howe said the U.S. gambling market is too crowded. While there are many contenders in the sports betting arena, only a few will come out as champions, Howe said at the time.
Another leader in the field, DraftKings, reported on Aug. 4 that it had increased its share of the online sports betting market to 35%, up from 27% last year.
