WynnBet bows out of New York sports betting market

From the perspective of a sports betting company, New York has been an unwieldy market. The state’s 51% tax rate has crimped hopes that one of the most sports-frenzied states in the country would lead to fat margins for companies and now, WynnBet, one of the biggest names in the sector, has decided to pull the plug on New York.

WynnBet adds New York to defunct markets list

Yet, New York is not alone, as WynnBet has so far withdrawn from 10 jurisdictions across the country, following a period of unbridled and determined expansion. WynnBet has already stopped accepting any new bets as of this week, and it is planning to wind down the NY-facing operation at 11 am on Thursday, August 29. Last August, the company quit 8 states in one fell swoop.

The operator is not the only sports betting brand to have ridden high in the hopes of securing a large market piece, and worrying about sustainability later. MaximBet, ESPNBet, PointsBet, and 888 are among some of the names that have grappled with turning their sprawling sports betting empires into a sustainable business model.

Of the four, only ESPN Bet is operating today with most others either having exited or reduced their presence significantly. ESPN Bet is also pivoting a New York entry among feeble financial and operational results so far.

WynnBet has been loath to withdraw from New York, not because it was absolutely certain that it would ever break even on sports betting, but rather because it held onto its precious license that could have paved the way for an online casino – the far more profitable sister activity of sports gambling.

However, as efforts to legalize iGaming in the Empire State have stalled, WynnBet’s management has arrived at a point where they must have felt like they have been throwing good money after bad – with unclear iGaming outlook and piling operational costs, WynnBet has preferred to make its exit.

Wynn Resorts attempts to take on the land-based sector in NY

Overall, WynnBet was able to rake in $233.1m in total bet volume, making it seventh among the eight available sportsbooks in the state.

Meanwhile, the umbrella company for the brand, Wynn Resorts International, has been trying to pivot another gaming initiative in the state, hoping to be allowed to pitch and plant its Wynn New York City casino resort project, in a bid to capture the land-based gaming vertical.

However, the project has faced a lot of pushback from concerned citizens as well as some NIMBYs. The main objection is that the project would disrupt local life, and it would also disrupt access and the view of some of the city's iconic landmarks.

In the meantime, WynnBet will continue to operate in a number of sports betting markets, among which are Colorado, Indiana, New Jersey, Tennessee, West Virginia, Virginia, Louisiana, and Massachusetts among others.

In February this year, Penn Entertainment confirmed that ESPN Bet will take the place of the Penn-Wynn license and roll out its offer in New York.

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