Another legal online gambling company is leaving New Jersey. WynnBET announced today that it is folding operations in eight states; Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia “as soon as possible.” WynnBET has online sportsbooks in all eight states. It also has a casino site in New Jersey.
In a press release, Julie Cameron-Doe, Chief Financial Officer at Wynn Resorts, the parent company of WynnBET, said, “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.”
“While we believe in the long-term prospects of iGaming, 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,” she continued.
While the company evaluates its Michigan and New York businesses, WynnBET will continue to operate sportsbooks in Massachusetts and Nevada. The company operates retail casinos in those markets. However, the WynnBet branding is not used in Nevada.
There is speculation that this could open the door to a New York license for a different operator, maybe ESPN BET, which announced a partnership with Penn Gaming. Barstool Sports and Penn Gaming went separate ways as the ESPN announcement.
Online sportsbook attrition continues
There have been many closures in the regulated online gambling industry. Barstool, Fubo, MaximBet, Elite, Fox Bet, PlayUp, PointsBet, and TwinSpires are among the national sportsbooks that have closed or plan to in the coming months. In Colorado, Maverick Sports and Sky Ute folded online sportsbook operations in June.
DraftKings and FanDuel combine to hold a supermajority of the market in all competitive states. BetMGM, Caesars Sportsbook, and a few others hold most of the rest of the online sports betting industry in the US. It seems like a reasonable prediction that more consolidation and closures are in the future.
WynnBET Affiliate program closed
The WynnBET affiliate program emailed partners within an hour of the Friday announcement related to the company scaling back online operations. The affiliate program is closing immediately. Affiliates are asked to stop promoting the company. The Nevada business does not have affiliate deals.