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.
NJ Governor Reauthorizes iGaming for Five Years
NJ Online Casino Gaming Extended for 5 Years
It’s decided. Lawmakers issued a reauthorization of iGaming for New Jersey with a five-year time frame. A few days ago, Governor Phil Murphy signed the law, allowing online casino gaming to continue through 2028. The extension time frame surprised many in the industry, as another ten years was expected.
Back and Forth with Time Frames
In 2013, then-NJ Governor Chris Christie signed a law to authorize iGaming for ten years. November 2023 was the deadline for today’s lawmakers to reauthorize the industry. The legislation was introduced in 2022, but no action was taken.
This year, the pressure was on to get something done to ensure the multi-million-dollar business stays intact. Due to the industry’s success, online casino operators expected the same ten-year time frame. However, it was quickly announced that lawmakers were considering a two-year reauthorization.
The short time frame caused operators to worry and speak out against it instantly. Supporters indicated that a longer period is necessary, as New Jersey needs to remain competitive against other states that are expanding gambling services and continue providing tax money for important programs. Jobs would also be at risk.
Discussions began again, and a middle ground was found with the five-year extension. It is unclear as to why the extension is shorter than the original law. Some fear that lawmakers are considering a possible push for a tax increase. Operators currently pay 15%, which is low compared to other states.
It was also revealed that lawmakers are being cautious in case adjustments are needed if the industry begins to impact commercial casinos negatively. Lawmakers also want to ensure players are protected and addiction does not become an issue among online gamblers.
Thankful for Five Years
Even though the reauthorization is not ten years, operators, and shareholders are thankful that at least some time is allowed for the industry to continue. The Chamber of Commerce of Southern New Jersey thanked lawmakers for abandoning the two-year idea. The adjustment allows for the iGaming industry to grow and thrive with a five-year security.
Payment provider Sightline Payments was also happy with the outcome. The company was the first digital payments provider to launch in New Jersey, and they commended lawmakers for committing to ensuring that NJ remains a leader in digital iGaming.
The law applies only to online casino gaming, since it was authorized in 2013. Sports betting does not apply since it was added in 2018. Operators now have through 2028 to continue offering online slots, table games, video poker, and more before a new time frame will need to be considered.
A Thriving iGaming Industry
New Jersey relies heavily on the iGaming industry, as the casino bets bring in tens of millions monthly. Since its start in 2013, the industry has generated over $6.2 billion in earnings. The industry continues to grow year after year and commonly reaches new milestones and records in earnings.
Over the past few years, how much the state relies on gambling revenue has been revealed. When the COVID-19 pandemic began in 2020, casinos in Atlantic City were shut down. This left operators with no way to earn retail revenues. Thankfully, the iGaming sites could remain open, and were able to flourish.
Since the onset of COVID-19 and the years that have passed, the iGaming industry has continued to thrive. Millions of people access top-rated sites regularly to enjoy slots, table games, and other types of content.
Operators constantly update platforms, offering new promotions and incentives to maintain their player base. A great deal of reinvestment goes into the industry, as operators know players are constantly looking for something new, be it with games or technology.
What’s Next for NJ Online Casinos?
It will be interesting to see how the industry functions within the next five years and what adjustments are made once the 2028 deadline draws near. Will the time frame be adjusted, or will we see a wholly different format for the industry?
New Jersey Lawmakers Appear Indecisive Over iGaming Extension
Future of NJ iGaming Market Up in the Air
Since 2013, New Jersey has offered an extensive iGaming market. The state legalized online casinos and poker at the time, with top-rated operators offering services to visitors and residents. The law legalizing iGaming was enacted for ten years, with November 2023 being the deadline for action. Lawmakers have been busy deciding how to extend the industry, with ideas all over the place.
The initial idea was to renew the industry for two years. Of course, this caused outrage among operators and forced lawmakers to reconsider. Now, it seems the goal is to renew online gaming for five years before reconsidering legislation yet again.
Cutting the Extension in Half
Because the law gave online casinos ten years of legalized services, the legislation was expected to be renewed for an additional ten years, no questions asked. Yet, that is not the case. The original bill to reauthorize online betting was set to offer a ten-year time frame but was suddenly cut down to two.
Casinos, businesses, and shareholders immediately fought back and called for lawmakers to add more time. Now, the measure has been amended and will extend iGaming for five years. There is no explanation for why lawmakers are not moving ahead with a longer extension and why the short two-year time frame was even a consideration.
The iGaming industry in New Jersey is one of the largest in the United States and an example for other states. It makes perfect sense to renew the law for a longer term to continue with the same momentum the industry has enjoyed over the past decade. Some feel that a raise in taxes may be under consideration, so the state chooses to only renew for five years.
Is a Tax Increase Coming?
Casino operators and political officials have speculated that the lesser renewal period could be based on taxes. Lawmakers would have leverage over the industry the next time the legislation needs to be updated and could call for higher tax payments.
Presently, in-person gaming provides 8% to the state. Online sports betting is 13%, and online gambling is 15%. These rates are relatively low, especially if you consider neighboring states. Pennsylvania, for example, has much higher taxes.
Online casino operators in PA must pay 16% on online non-peer-to-peer table games and a whopping 54% on online slots. Sports betting is taxed at 36%. With New Jersey having such low rates, the lawmakers could require changes for higher payments to the state to renew the iGaming legislation once again; at least, that is what some operators think could happen.
Harming Potential NJ Investments
Don Guardian, the former Atlantic City mayor and Republican Assemblyman, pointed out that a shorter time frame would devastate the industry as it relies on investments. Only a handful of states currently offer online gaming in the US, and NJ has the largest market, bringing in more money than any other state.
Mr. Guardian feels that companies will not be willing to invest in the sector if limited to two more years. Even five years may cause companies to pull back in offering iGaming. Atlantic City has stayed afloat thanks to online gaming, especially during the COVID-19 pandemic. The online sites could continue offering services while the land-based casinos were shut down.
Since launching in November 2013, the online gaming sites of NJ have brought in over $6 billion in revenues. This is only casino gaming and does not include sports betting totals. The massive industry is at risk if lawmakers do not consider extending the legislation for a longer time frame.
It will be interesting to see if any change will be made to the legislation or if the five-year time limit will stand. Operators will surely fight for more time, so they can continue to invest and bring in much-needed revenues to the state.
