Wynn Resorts announced late last week that they will begin shuttering online betting operations in several states “as soon as possible.”
WynnBett identified eight markets that will be affected by the shutdown. The eight markets are specifically Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. The shutdown includes online sports betting in all states, and online casino gaming in those states that allow it.
The news came at an interesting time as Wynnbet relaunched a new online platform in six states just last week.
Two jurisdictions where WynnBet operates are guaranteed to remain, Nevada and Massachusetts. Wynn Resorts operates brick and mortar casinos in both states. Wynnbet also announced they are reviewing operations in the states of New York and Michigan with their futures still to be determined.
“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,” Wynn Chief Financial Officer Julie Cameron-Doe said in a release.
Wynnbet has struggled to gain market share in an overly saturated sports betting marketplace. According to reports in markets where Wynnbet was active and information on market share was provided they had only a 0.97 percent betting handle share, and a lower 0.57 percent of sports betting revenue. One outlier was Massachusetts where Wynnbet reported a 3.7 percent handle market share and a 2.1 percent revenue market share.
Wynnbet is the latest in a growing list of online sportsbooks that have begun pulling out of markets, or in some cases closing completely. Included in that list are Fubo Sportsbook, Fox Bet, MaximBet, and TwinSpires.