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Another one bites the dust.
We hardly knew ya.
WynnBet on Friday announced it will be shutting its doors to all US states except for Nevada and Massachusetts. Remaining open in those two states has everything to do with operating casinos there.
"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," said Julie Cameron-Doe, Chief Financial Officer of Wynn Resorts.
"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," she continued.
WynnBet and others continue to struggle in competing with the so-called "Big Four": FanDuel, DraftKings, BetMGM and Caesars. The companies must also pay significant tax and fees to states. Affiliate partners are also limited in their ability to promote brands
Working with its regulators and patrons, the Company will seek to cease operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia as soon as possible.
It does seem like they are dropping like flies. PlayUP, Bally Bet, Maverick Sportsbook, and Sky Ute Sportsbook have all shuttered in recent weeks.
The timing couldn't be worse. Football is set to begin in just a few weeks. WynnBet is also coming off two weekends where Daily Fantasy Sports sites saw record app downloads and sportsbooks record wagering.
- Aaron Goldstein, Gambling911.com
