WynnBet has become the latest victim of the consolidating U.S. sports betting market, as the online sportsbook will cease operations in eight states.
Nevada-based casino and hotel owner Wynn Resorts announced the reduction Friday to end WynBet’s operations “as soon as possible” in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. WynnBet will continue to operate in Nevada and Massachusetts while its New York and Michigan standing is under review.
The company said its decision was driven by demands for marketing spend to acquire sports betting customers. WynnBet’s downsizing comes as ESPN is entering a $2 billion partnership with PENN Entertainment to launch ESPN Bet as another sportsbook option.
“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 CFO Julie Cameron-Doe. “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.”
Other recent consolidation in the online sports betting industry includes Flutter Entertainment and Fox’s plan to shut down Fox Bet, launched four years ago. MaximBet, Fubo Sportsbook, Churchill Downs, and theScore have also closed their sportsbooks.
In January 2022, it was reported that Wynn was looking to sell its sports betting unit for $500 million. The sportsbook has signed sponsorships with the NFL’s Indianapolis Colts, New York Jets, and Detroit Lions.