The platform will no longer be available in Arizona, Colorado, Indiana, New Jersey, Louisiana, Tennessee, West Virginia, and Virginia.
It will continue operations in two states with physical casinos, Nevada and Massachusetts. The company is still reviewing operations in New York and Michigan.
We regret to inform you that WynnBET will be closing its operations. As of August 11, 2023, WynnBET will no longer be accepting bets or allow igaming wagering in the following states AZ, CO, IN, NJ, TN, VA, LA, WV.
— WynnBET (@WynnBET) August 11, 2023
In a statement, Wynn Resorts’ chief financial officer Julie Cameron-Doe cited the lack of iGaming regulations and various alternate investment prospects influencing the choice to reduce capital expenditure in WynnBET.
“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,” Cameron-Doe said.
WynnBET Entered New Jersey in 2020
WynnBET launched in New Jersey in 2020 and quickly expanded to four more states by April 2021. The company planned a merger with Austerlitz Acquisition Corporation to continue growing but failed to sign a deal in November 2021.
The closure announcement came just a week after relaunching in six new markets. Per Betting AZ, the company had spent significant time, effort, and money to operate legally in those six markets, including a new app offering a single app for users to wager on sports across all markets.
The new and improved app also featured new technology that enhances betting markets, deposits, and withdrawals.
Users can still access their accounts until October 11 to withdraw any money. If they do not close their accounts by then, checks will be mailed to the address on the account.
Bets placed before Friday for events before October 11 will be settled and paid out normally. There will be more information soon about open bets that settle after October 11.
Although the company has ceased operations in many markets, Cameron-Doe said iGaming will remain a focus for the app. As of now, it is moving at a slower pace.
Revenues and Figures
Earlier this week, the company announced strong Q2 earnings, with operator revenue increasing 76% year-over-year to $1.6 billion. So far, it has generated approximately $50 million in iGaming revenue.
Despite the impressive figure, WynnBET’s market share in states where it is live and where operator data is broken down is relatively low. This year, the company has a 0.97% betting handle market share and 0.57% of sports betting revenue.
WynnBET is the latest online NJ sportsbook to scale back its operations as the market contracts. The past year saw several other sportsbooks closed, including Fubo Sportsbook, FOX Bet, MaximBet, and TwinSpires.
Some companies are struggling to keep up with the market competition, especially against two of the big players in the market, DraftKings and FanDuel. WynnBET may have decided it is not worth the investment to try competing with these two giants.
For WynnBET’s rivals, withdrawing from the sports betting and iGaming market is another opportunity to gain market share. However, it also shows how difficult it is to compete in the US sports betting markets. Companies like ESPN & Penn and Fanatics, which are looking to hit the market soon, must be prepared to invest heavily and compete with the big players.
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