WynnBET bids farewell in eight states

Wynn Resorts, the company which operates casino, hospitality, and sports betting products, and has been rapidly expanding in the digital space, has announced that it will wind down WynnBET, its iGaming and sports wagering app, in eight states.

This comes only a few weeks after WynnBET launched in six new states, part of a major push for the platform. However, a press release last Friday confirmed that the app will be wound down in certain jurisdictions.

The company addressed the dynamic of the sports betting market and the cost of customer acquisition, along with advertising costs which have convinced it to consider a more streamlined path to the sports betting segment.

Wynn Resorts CFO, Julie Cameron-Doe, said that the company had worked out to achieve a business model that delivers a higher and better use of capital deployment for its shareholders. Cameron-Doe said:

"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."

As the statement reveals, WynnBET is not in fact making an abrupt exit from sports gambling or iGaming itself, as the likes of PointsBet, Fox BET, FuboTV, or MaximBet did. The move is more akin to facing market realities and ensuring that the company is not trying to break ground in markets that offer little return to its specific business model in particular.

Interestingly, though, some of the states that WynnBET pulls the plug on are generally touted as some of the busiest in business, including Colorado and New Jersey. The company is also shutting down its app in Arizona, Indiana, Louisiana, Tennessee, Virginia, and West Virginia. WynnBET has confirmed that it will continue to operate in Massachusetts and Nevada, where it has been happy with its performance.

However, the operations in New York and Michigan will remain under review. New York, for example, is a newer but difficult market to navigate owing to high rates of taxation. Michigan is a good state for iGaming, as the activity is allowed there, but WynnBET may have other considerations than just what verticals are allowed.

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