Wynn Resorts (NASDA:WYNN) has opted to conclude its online sports betting and iGaming platform, WynnBET, in specific regions across the United States due to ambiguous regulations and elevated expenses for acquiring customers. The casino operator announced this decision on Friday.
The company’s move involves discontinuing services in the states of Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. Notably, the withdrawal from West Virginia follows the launch of WynnBET in the state a couple of months prior.
Wynn Resorts, however, clarified that its operations in Nevada and Massachusetts will remain unaffected by this decision. Meanwhile, the status of operations in New York and Michigan is still being evaluated.
Explaining the rationale, Wynn’s Chief Financial Officer, Julie Cameron-Doe, highlighted the absence of comprehensive iGaming legislation and the ongoing necessity for substantial marketing investments in online sports betting.
In response to this news, the company’s shares experienced a decline of approximately 4% during afternoon trading.
WynnBET operates as part of Wynn Interactive, a subsidiary predominantly owned by Wynn Resorts. This subsidiary was previously poised for a merger with Austerlitz Acquisition Corp I. However, the merger deal was officially terminated in November 2021.
Just last Wednesday, Wynn Resorts reported second-quarter results that exceeded expectations on Wall Street. The company’s properties in Las Vegas and Macau witnessed growth in various aspects, including gaming, dining, and hotel reservations.
Featured Image: Unsplash @ Scott Webb
