Wynn Sports Betting Merger Shows SPAC Wave Not Over

Wynn Resorts is taking its sports and online betting wing, Wynn Interactive, public in a SPAC merger with Austerlitz Acquisition Corporation I, adding $640 million in new cash.

The casino and online gambling operator will retain 58% ownership and 70% voting rights of the company, which is valued at $3.2 billion.

WynnBet has gained a foothold in the increasingly crowded U.S. market by partnering with NASCAR, the Memphis Grizzlies, and the Detroit Pistons. Wynn estimates that the overall North American sports betting and iGaming market will eventually be worth $45 billion.

Though SPAC mergers have slowed from their torrid pace earlier in the year, they’re still a popular vehicle for sports betting companies to go public.

• In April 2020, DraftKings brought in $300 million by merging with a blank-check company at a valuation north of $3 billion.
• Golden Nugget Gaming, owned by Houston Rockets’ owner Tilman Fertitta, went public in a SPAC deal in February, valuing the company at $6.6 billion. 
• Rush Street Interactive raised $230 million in a December SPAC merger that valued it at $1.5 billion.

Wynn Interactive offers casino and sports betting options to mobile consumers through its WynnBET, BetBull, and WynnSLOTS brands.

WynnBet has live operations in six states, but Wynn Interactive has market access in 15, reaching about 51% of the U.S. population.