Wynn Resorts has cited a better use of capital after disclosing a decision to shutter its online casino and sports betting operations across a string of US states.
The move, which comes a short time after the group rolled-out an updated WynnBET app across a selection of legalised jurisdictions, will see operations ceased across operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia.
“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,” said Julie Cameron-Doe, Chief Financial Officer of Wynn Resorts.
However, despite existing most states, the company will maintain its digital operations in those regions where the group houses land-based gaming venues, namely Massachusetts and Nevada.
In Nevada, the firm boasts Wynn and Encore Las Vegas, while in the latter Wynn operates the $2.6bn Encore Boston Harbor property.
In Massachusetts, WynnBET is one of eight operators and contends with Penn’s soon-to-be-rebranded Barstool Sportsbook and Caesars for fourth place.
Furthermore, in addition to these continuing to be unaffected, a review in New York and Michigan will subsequently be undertaken. In New York, the sportsbook will remain operational, while Michigan will see a closure of the sports betting product but igaming will remain online for now.
“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,” Cameron-Doe added.
WynnBET has notified customers that funds will remain in their account and available for withdrawal until October 11, 2023, following which a check will be mailed to the address that is stored on file.