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 7th 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.
bet365 Unanimously Approved to Operate Online Sportsbook in Colorado
The online sports betting market in Colorado has a new player. On Thursday last week, the Limited Gaming Control Commission (LGCC) voted unanimously to approve the license for bet365. The British-based online gaming company partnered with Colorado’s Century Casino to obtain its license. No date has been announced regarding a starting date for bet365 operations.
Century Casino and bet365 announced their partnership back in May of last year. The deal between the Colorado casino and the British online gaming operator will last at least 10 years. Century Casino has two brick-and-mortar operations in the Rocky Mountain State. Their locations in Cripple Creek and Central City are both near Denver.
There are a number of highly-rated online casino sites in Colorado already. bet365 will look to take advantage of the state’s progressive gambling laws and a large number of sporting events throughout the year. The rocky mountain state has already experienced a record-setting year in 2021 and is primed for another one in 2022. The sooner bet365 and Century Casino can get their new partnership up and running, the sooner they can join in the fun.
Colorado Will be Second US State with bet365 Operations
bet365 started in 2000 and launched their first sports betting operation in 2001 in Europe. The gambling company is based in the UK and mainly offers casino games and sports betting. Colorado will be the second state in the US that bet365 will have operations in. bet365 has already established operations on the east coast of the US in New Jersey.
The UK gambling site has hit a ton of milestones as they spread across the western hemisphere in the last two decades. Despite having success in numerous other countries, bet365 has struggled to find its footing in the US. bet365 has been trying to expand into the US since 2018 when sports betting restrictions were lifted.
Part of the reason bet365 has had trouble expanding across the pond may be due in part to the numerous controversies surrounding the company in recent years. In 2014, the UK gaming company was accused of using obscure domain names to avoid censorship in China. They were also fined $2.75 million AUD in 2016 for falsely advertising free bets in Australia. There have also been numerous claims of the company refusing to pay out winnings to players.
Whatever the reason for their slow start, bet365 is hoping that they can get the ball rolling in one of the biggest US sports betting markets. Colorado’s sports betting industry has seen record-breaking numbers so far this year, and it will likely continue to grow. It is also one of the only states in the US that allow players to use mobile sports betting apps.
Online Sports Betting in Colorado
Colorado is an obvious choice for expansion and gives bet365 a gateway to further expansion in the west. The Rocky Mountain state has been one of the fastest-growing sports betting markets in the US due to its relatively relaxed gambling laws. In Colorado, any of the three dozen casinos are eligible to apply for sports betting licenses. The state also allows for online and mobile sports betting options.
As a result, it is no surprise that Colorado boasts a large number of legal sportsbooks. Since legalizing sports betting in May of 2020, a total of 26 sportsbooks have been licensed. Colorado has a wide variety of teams across most professional and collegiate sports leagues, offering residents plenty of options to bet on. The wide variety of betting options also provides bettors plenty of ways to get in on the action.
At the meeting last week, the LGCC also approved 19 sports betting vendor licenses. These licenses are given to entities that act or provide services on behalf of sports betting licensees. Some of the sports betting vendors licensed included Betclever, Elias Digital Solutions, and the PGA Tour. The state of Colorado also features 17 retail sports betting operators. The LGCC also approved the renewal of retail and master licenses for four Black Hawk Casinos throughout the state.
Conclusion
Colorado’s sports betting boom continues to attract new operators. Last week, the LGCC met and approved a number of new sports betting licenses. Among them was the license for bet365, a sports betting company out of the UK. bet365 partnered with a local Colorado casino operator, Century Casino, to obtain their license. The current agreement between Century Casino and bet365 is a 10-year partnership.
The LGCC has also given approval to a total of 17 retail sports betting vendors since 2020. At their meeting last Thursday, Colorado’s gaming regulators approved 19 new sports betting vendor licenses. They also approved the renewal of master and retail licenses for four Black Hawk casinos. After seeing 2021 revenues shatter records for the most ever, it seems that the legislators are keen to clear the way for another big year in 2022.
