WynnBET Announces Online Casino & Sportsbook Shutdowns in Several States

In a surprising turn of events, Wynn Resorts announced the closure of its online gaming services in several US states late last week. Sportsbooks and online casino sites will close in specific areas across the country. The shutdown was unexpected, with the company stating it intends to use the allocated funds from iGaming for other investments.

Online Casinos in NJ & WV Shut Down

WynnBET focused on sports betting in the US with its iGaming operations but also offered online casino services in New Jersey and West Virginia. These two states will no longer feature online casino sites from the brand.

An email was sent out to players from WynnBET announcing the closure. Players were given a timeline to remove funds. The online casino in New Jersey is open through October 11, with players having just under two months to remove any cash from their account.

Any Wynn Rewards earned from casino gaming will remain in effect. Players can use the rewards at Wynn properties in the US. This includes Encore at Wynn Las Vegas, Wynn Las Vegas, and Encore Boston Harbor.

In a press release, Wynn Chief Financial Officer, Julie Cameron-Doe, stated that iGaming will remain a focus of WynnBET. However, it needs to move at a stronger pace for the company at this time. The CFO stated that the company believes in the industry’s long-term prospects; still, the need for more legislation for iGaming and the opportunity for other global investments led the company to decide to stop its capital investments in the sector.  

Sports Betting Sites Close in Eight States

For sports betting services by Wynn, the brand has seen the largest closure. The company plans to shut down services in the following states:

• Arizona
• Colorado
• Indiana
• Louisiana
• New Jersey
• Tennessee
• Virginia
• West Virginia

Only two jurisdictions, including Nevada and Massachusetts, will remain unaffected by the closure. These are the two states where Wynn Resorts also operates physical casinos. CFO Cameron-Doe stated that the company feels there are better uses of capital deployment for Wynn Resorts shareholders in light of the continued requirement for outside marketing spending through user acquisition and promotions for online sports betting.

Interestingly, the news comes a few days after WynnBET relaunched an updated platform in six states. Additional information has not been provided on the pending closures.

Players continue to have time to remove funds, and WynnBET will pay out all outstanding sports bets. Members of the brand in affected states should have received an email detailing the steps to remove funds or wait for pending bets to close.

Michigan & New York Operations Under Review

WynnBET has decided to continue reviewing its Michigan and New York operations, with the option to remain open. The company does well in Michigan, with a 3.2% share of revenues from iGaming. The company is listed as the 7^th of 15 in the state. In the past two years, WynnBET has earned around $50 million in revenues in the Wolverine State.

In New York, the operations are also under review. The company has a 0.6% lifetime handle in NY, which is relatively low. Wynn Resorts recently partnered with Related Companies in a bid to create a casino downstate with a $10 billion investment. If the casino plan is selected, it would be a reason for WynnBET to remain operational in New York.

Additional Closures in Sports Betting

WynnBET is not the only company to announce the closure of online sports betting services in the US. Fox Bet, Fubo Sportsbook, MaximBet, and TwinSpires all shut down within the past year. These companies could not obtain a market share when up against powerhouses like DraftKings, FanDuel, and BetMGM.

It’s important to note that it is not common for an online casino to close in the US. Most sites remain open even if they are at the bottom regarding revenue earnings to ensure a secondary income level for retail casino partners.