Wynn Resorts has recently made the announcement to close down its online sports betting and casino gambling platform, WynnBET, in specific jurisdictions.
Julie Cameron-Doe, the Chief Financial Officer of Wynn Resorts, explained the decision, stating, “Given the ongoing necessity for substantial spending on marketing, user acquisition, and promotional activities in the realm of online sports betting, we believe that there are more advantageous and productive ways to allocate capital for the benefit of Wynn Resorts shareholders.”
Cameron-Doe further elaborated, “While our faith in the long-term potential of iGaming remains strong, the limited legislative progress in iGaming coupled with the abundance of diverse investment opportunities worldwide has prompted us to reduce our financial investment in WynnBET. Instead, we will focus predominantly on states where we have a physical presence.”
The company intends to collaborate with online gambling regulators to swiftly halt operations in various states including Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia.
WynnBET’s activities in Nevada and Massachusetts will continue as usual, while operations in New York and Michigan are currently being evaluated.
Although online gambling in the U.S. is experiencing unprecedented growth, the industry is fiercely competitive, with major players like FanDuel and DraftKings dominating the online sports betting landscape.
Statistics from the American Gaming Association reveal that during Q1 2023, Americans set a new record by wagering $31.11 billion on sports, which translated to a record-breaking quarterly revenue of $2.79 billion, marking a remarkable 70.1% year-over-year increase.
This growth is largely attributed to the introduction of new markets in states like Kansas, Massachusetts, and Ohio, compared to Q1 2022.
Furthermore, online casino gambling yielded $1.48 billion in revenue during Q1 2023, showcasing a substantial 22.7% year-over-year growth.
While sports betting has been legalized in over 30 states, online casinos are only legal in a handful. A few states are contemplating online casino legislation for 2024, though the entry of any new markets remains uncertain.
In the upcoming months, PENN Entertainment is set to launch an ESPN-branded sportsbook, contributing to the dynamic landscape of online sports betting. Additionally, Fanatics Gaming is aiming to expand its U.S. sports betting enterprise.