Wynn Resorts is reportedly unloading its online sport betting business at a huge discount as that business unit is currently facing huge losses from stiff taxation and expensive promotions needed to lure customers.
According to reports, Wynn is shopping its Wynn Interactive Unit which is the operator of online sportsbook WynnBet at an asking price of $500 million after floating a valuation of $3 billion over a year ago.
Current rumors are pointing at Fanatics and Penn Interactive as the top suitors for Wynn Interactive, although neither has displayed fim interest so far. Aside from the WynnBet app, Wynn Interactive also owns Wynn Slots and BetBull.
Shaq as Brand Ambassador
The report comes barely six months after WynnBet’s flashy spring launch where it introduced former NBA great Shaquille O’Neal as its brand ambassador. O’Neal even sold his minority ownership share in the Sacramento Kings so that he can work with WynnBet without violating the NBA’s gambling rules.
A few months later, Wynn Resorts revealed that it was scrapping its plan to merge Wynn Interactive with Austerlitz Acquisition Corp. which is a blank-check company of Las Vegas Knights billionaire owner Bill Foley. In May of 2021, Wynn announced that it would merge with Austerlitz to create a public company with a $3.2 billion valuation.
Expensive Sports Betting Promos
It is estimated that an online sports betting company spends $300 to $500 to acquire a new customer. Recently, DraftKings and FanDuel- which control the majority share of the online sports betting market, have been dangling free $1,000 credits to sign up new members.Caesars Sportsbook has come up with a similar promotion in New York despite the steep 51% tax on online sports betting revenues in the state.
Last Friday, the New York Gaming Commission announced that mobile sports betting was off to a strong start in the state, with over $600 million of bets placed taken by Caesars, FanDuel, DraftKings, and BetRivers during its first two weeks of operation. Gaming analysts attribute this massive figure to the “heavy promotions” offered by the sports betting operators.