More Details on the Wynn Interactive Sale are Starting to Surface

Wynn Bet For Sale Sports Betting App Background

The past few years have been some of the most unusual in history for Wynn Resorts. The Las Vegas-based casino operator has shifted its focus on several occasions and now seems ready to abandon its sports betting operations. Today, we’ll talk about some of the details surrounding the Wynn Interactive sale.

The US sports betting industry is growing at a rapid pace. Wynn Resorts is no longer focused on this area.

Here’s what you need to know about this proposed sale.

The Wynn Interactive Sale Price is Lowered to $500 Million

Wynn Resorts was founded in 2002 and quickly grew into one of the most successful gambling companies in the United States. This casino operator initially focused on the Las Vegas market, opening several resorts directly on the Strip. This company continued working toward expansion and opened properties in Macau and Massachusetts.

The past few years have been somewhat tumultuous for Wynn Resorts. The company’s founder and previous CEO, Steve Wynn, was put in the spotlight over alleged sexual misconduct. He eventually stepped down and was replaced by Matt Maddox.

The pandemic took a major toll on this company, as well. Its casinos around the world experienced very low revenue figures throughout 2020. Things have improved in the United States, yet Wynn Resorts’ casinos in Macau continue to struggle. It’s now clear that the company’s sports betting platform, called Wynn Interactive, has also been suffering.

Rumors of a Wynn Interactive sale have been floating around for years. Reports surfaced this week claiming Wynn Resorts has lowered the sale price of this platform from $3 billion to just $400 million. CEO Matt Maddox shed some light on the motivation for this sale to the media last November.

“The market is really not sustainable right now,” Maddox said. “Competitors are spending too much to get customers. And the economics are just not something that we’re going to participate in.”

Several companies appear interested in taking control of Wynn Interactive. That includes Fanatics and Penn Interactive. Stay tuned for more details on this major sale as the year goes on.

How Will Macau’s Casino Industry Fare in 2022?

The world’s casino industry came to a halt back in early 2020. Gambling properties around the world were forced to halt their operations. Things completely turned around in the US casino industry last year, yet Macau’s gambling industry continues to struggle.

Analysts remain torn as to how this territory’s casinos will fare in 2022. Not long ago, officials within Macau’s regulatory body announced a new framework for casino companies to renew their gaming licenses. This was great news for the US casino companies operating in Macau and many saw their share prices immediately increase.

Mainland China has continued to hold its firm grip over Macau since 2020. The government has targeted junket operators and seems focused on cracking down against any businesses alleged to promote illegal gambling. If China continues with these crackdowns, Macau may struggle throughout 2022.

The pandemic appears to be slowing down and that could lead to a surge of tourism into Macau. Assuming that is the case, Macau’s gambling industry may find major success this year. Officials within Macau are desperate for an increase in tax revenue and will likely work to promote tourism throughout 2022.

Wynn Resorts owns and operates three casinos in Macau. With the Wynn Interactive sale, this company will have more time to focus on its operators in this major gambling hub.

US Sports Betting Revenue Will Break New Records in 2022

The United States’ sports betting industry truly began to expand in 2018 after the removal of PASPA. It’s been a quick rise and more than half the country now has regulated sportsbooks up and running. Sports betting revenue has increased every single year and is expected to break new records in 2022.

Several massive sports betting markets are expected to open up this year. California’s lawmakers are pushing several sports gambling bills through their legislative process. Residents will likely have an opportunity to vote on the legalization of sports betting before the end of the year.

Massachusetts seems very likely to make sports betting legal this year, too. Lawmakers in this state came very close to doing so in 2021. The Northeastern US is now a major sports betting hub and Massachusetts may quickly develop one of the most successful betting industries in the country.

Sports betting operators are working hard to break into new markets. Wynn Resorts no longer feels it can compete in this industry. The Wynn Interactive sale will likely go through in the next few months and analysts remain curious as to who will be the buyer.

Are you surprised to see Wynn Resorts selling its sports betting platform? Will the company’s operations in Macau succeed this year? Let us know in the comments section below.

Wynn Online Sports Betting Business Going Public Via SPAC Merger

Wynn Las Vegas

Wynn Resorts Ltd.’s online sports betting business is going public by merging with a special purpose acquisition company.

According to a press release from Wynn Resorts on Monday, the company is merging Wynn interactive division with Austerlitz Acquisition Corp.I, a blank-check company established by title-insurance magnate William P. Foley II. The transaction is expected to close by the end of the year.

The new entity will trade on the Nasdaq Stock Market under the name Wynn Interactive Ltd., with the trading symbol WBET.

Said Wynn Chief Executive Officer Matt Maddox in a statement:

“We are confident that this transaction will unlock the tremendous potential of Wynn Interactive to further accelerate growth and enable the business to capture the massive opportunity in North America.”

Online Projections

Wynn Interactive projected an online revenue of $708M for 2023, based on a 5% to 7% share of the U.S. market. The company’s current annual run rate is $100M per executives during a conference call for investors. Wynn Resorts shares gained as much as 3.1% to $129.67 in after-hours trading. They were up 11% this year through the close of Monday transactions in New York.

The Wynn merger follows the route that other big gaming companies have undertaken in recent times. DraftKings Inc., Golden Nugget Online Gambling Inc., and Rush Street Interactive have gone public after merging with a SPAC company. The deal is expected to fetch $640M in cash for Wynn Resorts.

About the Companies

Wynn Interactive is currently operating via WynnBet in six U.S states: New Jersey, Colorado, Michigan, Virginia, Indiana, Indiana, and Tennessee. The company says that it has market access opportunities in a total of 15 states that covers an estimated 15% of the United States population.

Austerlitz is one of six blank check companies founded by Foley through his Cannae Holdings and has reportedly created more than $140B in value. Foley, whose net worth was listed by Forbes at $1.9B, has holdings in the Las Vegas Golden Knights of the NHL, Fidelity National Financial, and software provider Black Knight.