Wynn Resorts Looking to Quit Sports Betting

Wynn Resorts Looking to Quit Sports Betting

The sports betting industry in the USA has seen massive growth in the past four years. More is expected this year, but Wynn Resorts are “looking to unload” their sports betting business.

Losses have been made by the company with high taxation levels being one of the main reasons. The gambling industry may be doing good business but the states that legalize sports betting are on the look-out for tax revenue.

Gambling is a highly competitive industry and that’s also caused Wynn Resorts some problems. Promotions are needed to help entice customers to join up but that can be a costly business.

Now it seems that Wynn Resorts are planning to sell their WynnBet online gaming app. The valuation of $3 billion a year ago is long gone and the asking price could now be only $500 million.

The third and fourth quarter results for WynnBet do not make happy reading with $100 million losses in both quarters. Outgoing Wynn Resorts CEO Matt Maddox believed it wasn’t an idea to be “throwing good money after bad.”

Legal Sports Betting

Wynn Resorts hold a New York online betting licence. It has yet to launch but that hasn’t affected the booming business that has been seen in the state.

It’s possible that the first month of legal sports betting may see over $1 billion in bets being placed. The launch has come at a good time because the NFL play-offs have started this month. With the Super Bowl next month, even more bets are going to be placed.

Between January 8 and 16, four mobile sportsbooks were operating with gross gaming revenue over $48 million. Caesars Entertainment, BetRivers, FanDuel and DraftKings were the four mobile sportsbooks that had launched. BetMGM opened their sportsbook the following week.

New Jersey – who led the campaigning to change the USA gambling industry – currently hold the record. October 2021 saw $1.3 billion worth of bets laid. That record may not last too long.

The glut of betting in New York is pleasing the tax authorities in the state. The tax rate on betting revenue is a lofty 51%. They must be wondering why it took so long to decide to legalize mobile sports betting. It’s believed the state could make $249 million this year with figures increasing further in the future. Estimates are that by 2027, there could be $518 million in tax revenue that year.

More online sportsbooks are on the way, though whether WynnBet will be one of them remains to be seen.