The high-end hotel and casino operator Wynn Resorts has explained that it could make better use of its capital after announcing a decision to shut down its digital casino and sportsbook operations in a number of US states.
The move has been announced only a short after the American accommodation and gambling group launched an updated WynnBET application across a few legalized jurisdictions across the country. As a result, it will see Wynn Resorts’ online casino and sportsbook operations ceased in New Jersey, Virginia, West Virginia, Colorado, Louisiana, Indiana, Arizona, and Tennessee.
Although, despite exiting most US states, Wynn Resorts is set to maintain its online gambling operations in the regions where the company currently operates brick-and-mortar gambling venues, namely the states of Nevada and Massachusetts. In Nevada, the accommodation and gaming giant boasts Wynn and Encore Las Vegas, with the company operating the $2.6-billion Encore Boston Harbor property. Currently, the WynBET app is one of the eight gambling and sports betting operators and contenders with the soon-to-be-rebranded Barstool Sportsbook and Caesars in the state of Massachusetts.
The Chief Financial Officer of the group, Julie Cameron-Doe, noted that the company believes it could use its shareholders’ capital deployment in a better way, especially considering the continued requirement for exceptionally large marketing spend through online sportsbook promotions and user acquisition.
New Investments and Uncertainties about iGambling Legislation Push Wynn Resorts in Different Direction
Apart from the fact that some of the digital gambling services of Wynn Resorts in Nevada and Massachusetts will be pretty much unaffected by the latest changes, the company also revealed that it will subsequently undertake a review of its operations in the states of New York and Michigan. The US gambling and casino giant shared that it will keep its online sports betting services in New York operational, while its sportsbook product in Michigan will no longer be offered. Online gambling services in the state, however, will remain operational for the time being.
The group’s CFO further explained that while Wynn Resorts believed in the excellent prospects online gambling had in the longer term, the lack of information when it comes to online gambling legislation and the multiple other investment opportunities available on a global scale had eventually made the company decide to reduce its WynBET capital investment in order to be able to primarily focus on US states where its business is physically present by brick-and-mortar venues.
The sports betting app of the company – WynBET – has informed its customers that their funds will remain in their accounts and all patrons will be able to withdraw their balance by October 11th, 2023. After that, a check will be mailed to the users’ addresses that are stored in the application database.
WynnBET has become the latest sports betting operator to reduce or fully shutter operations in some jurisdictions across the US. As CasinoGamesPro reported only a week ago, Penn Entertainment decided to ditch its Barstool Sportsbook service in favor of a newly-announced partnership with ESPN. Other sportsbook operators, including Fox Bet, Fubo Sportsbook, TwinSpires, and MaximBet, fully shut their services in the country.