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.
Online Betting Passed by Tennessee’s House of Representatives
It seems that online sports betting will come to Tennessee as the House of Representatives passed a piece of legislation recently that will legalize this type of activity on the web. Tennessee could become one of the few states that gave two thumbs up to betting on sports online.
The Tennessean newspaper published a report stating that a body consisting of 
99 seats approved House Bill 1. 58 voted in favor while 37 opposed the bill, with some of the opposers being pretty loud in their protest against it. According to them, legalizing online sports betting could pave the way to a big increase in gambling addiction.
The legislation regarding online sports betting was written by a Democratic Representative in Tennesse, Rick Staples. It will be sent to the Tennessee State Senate, and if they pass the bill, we could witness online sports betting in Tennessee very soon. The legislative piece was also approved by the Finance Committee, which consists of 33 members. Finally, the Governor of Tennesse, Bill Lee, will have to say his words in the end and put a signature so that everything can be set into motion.
According to Staples, Tennessee is in a unique position right now and it has huge potential to generate revenue from online sports betting. Namely, Staples argues that all the neighboring countries, including Kentucky, Alabama, Georgia, and Arkansas do not allow this type of activity, which means that many people would visit Tennessee to enjoy activities such as sports betting. Furthermore, he added that sports betting operators would use cutting-edge geo-location technology which will allow aficionados from the neighboring states to enter the so-called ‘Volunteer State’ and be able to place wagers.
According to The Tennessean, if House Bill 1 is ratified, it would allow everyone who is located in the state of Tennessee to take part in legal online betting on sports. The only boundary would be that they are of minimum gambling age which is 21 ins this southern state. Punters will have an opportunity to place wagers on both professional and collegiate sports.
On the other hand, the bill doesn’t include land-based sports betting facilities. In other words, everyone who wants to place bets will have to do that exclusively at online platforms. Furthermore, the bill suggests that $50 million in tax revenues will have to be allocated to the local government, gambling addiction programs, and education.
Furthermore, there are a couple of prohibitions that will take place if this legislative piece becomes active, and it is mainly aimed towards prohibited punters. People who are registered as athletes, referees or team owners will be strictly forbidden to partake in online sports betting as it is believed they could compromise the integrity of sports and entier leagues.
House Bill 1 was introduced as a consequence of the invalidation of the Professional and Amateur Sports Protection Act (PASPA) in May last year. This act was largely responsible for the fact that sports betting was largely unavailable in the US for the past two decades. In fact, only Nevada offered sports betting services before PASPA was invalidated. However, some states were ready and welcomed this decision made by the United States Supreme Court. At the moment, sports betting services are available (or being actively discussed) in Delaware, New Jersey, Rhode Island, Mississippi, West Virginia, Pennsylvania, and New Mexico. Furthermore, 31 additional states are currently considering this option and its advantages and disadvantages. States such as Iowa, Washington, and Indiana are some of the states that are very likely to make the first step soon.
