Wynn Resorts has outlined the vision for its interactive division, as the casino developer and operator details continued struggles for its land-based operations in its Q3 report.
The company, which initially inked a deal with sportsbook and casino operator BetBull in October 2018, says that Wynn Interactive was formed following a merger of its online sports betting and gaming business, social casino segment, and strategic partner, last month.
As media outlets report an $80m investment into the venture, which will be consolidated moving forward, Wynn Resorts outlines a 71 per cent ownership.
The company explained: “We expect this transaction to position Wynn Resorts to capitalise on developing opportunities in digital and interactive sports betting and gaming throughout the US, by combining Wynn Resorts’ nationally recognised brand with BetBull’s digital sports betting operational capabilities and technology.”
With Matt Maddox, CEO of Wynn Resorts, adding: “On the development front, we have made substantial progress advancing Wynn Interactive, our majority owned sports betting and online gaming subsidiary. During the third quarter, we launched online sports and casino offerings in New Jersey to an encouraging initial customer response.
“Beyond New Jersey, we have secured market access in numerous other states, and are in the process of applying for licenses on a standalone basis in Tennessee and Virginia. We are also in discussions with potential partners regarding additional access agreements in other jurisdictions.
“Our nationally-recognised brand and unique product-led strategy position us well to generate our fair share of this important, fast-growing business over the coming years.”
Operating revenue during the year’s third quarter plummeted 77.5 per cent from $1.65bn to $370.5m, with decreases of $582.5m, $422.9m, $212.8m, and $59.1m felt at Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor, respectively.
Revenue at Wynn’s Palace and Macau came in at $15.7m, a 97.4 per cent per cent decrease from $598.2m, and $51.4m, a 89.2 per cent decrease from $474.3m.
Venues in the region are under COVID-19 specific protective measures, such as traveller quarantines and requirements for negative tests before entering Macau, limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, negative test results requirements for entry to gaming areas, and health declarations remaining in effect at the present time.
In Las Vegas, which reopened on June 4 and also has a number of COVID protocols in place, revenue finished up at $186.7m, a 53.3 per cent decrease from $399.5m. Operating revenues from Encore Boston Harbor were $116.7m for the third quarter, a 33.6 per cent decrease from $175.8m year-on-year.
Wynn Resorts’ net loss during the reporting period finished up at $831.5m, swinging from an income of $26.8m during 2019’s comparable period, with adjusted property EBITDA at a loss of $65.9m, compared to $396.9m.
Adjusted Property EBITDA decreased $239.8m, $173.4m, and $67.8m at Wynn Palace, Wynn Macau, and our Las Vegas operations, respectively, and increased $18.2m at Encore Boston Harbor.
“We are encouraged by the progress we have made in each of our properties over the past several months, despite the ongoing impact of the virus and related operating limitations,” stated Maddox.
“Encore Boston Harbor delivered record quarterly EBITDA during the third quarter, while Wynn Las Vegas continued to experience strong leisure demand on weekends with solid hotel occupancy and casino play.
“In Macau, visitation restrictions have begun to gradually and thoughtfully ease, allowing us to achieve EBITDA break-even in October. We are confident that Macau will continue to benefit from the return of consumer demand as we head into 2021.”