WynnBet announces departure from Massachusetts, marking ninth exit in US markets

Content Team January 31, 2024

WynnBet, the sports betting and iGaming platform operated by Wynn Resorts, is set to cease operations in Massachusetts, signalling its ninth departure from a US market. This decision, to be discussed in the Massachusetts Gaming Commission’s public meeting on 1 February, is part of WynnBet’s broader restructuring efforts initiated in August 2023.

In a significant move last year, WynnBet announced its intention to exit eight out of its 12 active markets. The affected states included Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. At that time, Wynn Resorts assured that its presence in Nevada and Massachusetts would remain unaffected, while New York and Michigan were placed “under review.”

WynnBet’s strategic shift

The decision to withdraw from multiple markets was attributed to the ongoing demand for outsized marketing expenditure, particularly for user acquisition and promotions.

Julie Cameron-Doe, (pictured above), the CFO of Wynn Resorts, stated, “We believe there are higher and better uses of capital deployment for Wynn Resorts shareholders.” This move aimed to optimize capital allocation and focus primarily on states where Wynn Resorts maintained a physical presence.

Despite these market exits, New York emerged as a key battleground for WynnBet. As the largest sports betting state in the US by GGR, New York presented both challenges and opportunities. However, WynnBet faces tough competition, reporting a modest total handle of $9.2 million in December 2023, resulting in negative GGR of $323,464. This pales in comparison to the market leader, FanDuel, which boasted a substantial $834.5 million handle for the same month, securing 1.1% of the market share.

New York’s Role in WynnBet’s Future Strategy

While New York’s sports betting operators grapple with a high 51 percent GGR tax, one of the country’s steepest, Wynn Resorts remains a contender for one of the state’s three downstate casino licenses. This potential development suggests that WynnBet might be strategically positioning itself for omni-channel opportunities should its bid prove successful. Furthermore, with the state contemplating iGaming legislation, there is a potential avenue for WynnBet to enhance its business prospects in New York.

As WynnBet navigates the complexities of the evolving iGaming landscape, its decisions reflect a commitment to adapting to market conditions and optimizing resources. The forthcoming discussions and developments in both Massachusetts and New York will offer valuable insights into WynnBet’s strategic trajectory in the ever-evolving US sports betting and iGaming industry.

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