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.

Genius Sports Secures Data Partnership with WynnBET

Wynn Resorts Las Vegas
Genius Sports Group announced on Tuesday a multi-state official data partnership with Wynn Resorts’ online sportsbook brand WynnBET.

Under the deal, Genius Sports will supply WynnBET with its LiveData and LiveTrading Services in the three states where WynnBET currently has access to, namely Colorado, Michigan, and New Jersey. Genius Sports will also provide WynnBET with official data content for hundreds of sporting events including the English Premier League, Euroleague Basketball, and the 2021 NASCAR Cup Series which WynnBET is an authorized online gaming operator.

Per Jack Davidson, Chief Commercial Officer at Genius Sports Group:

“Along with its broad market-access and nationally-recognizable brand name, Genius is an ideal partner to enhance WynnBET’s expanding online sportsbook and in-game betting offering. With growing numbers of states introducing online betting regulation, in-game handle is quickly rising – and WynnBET recognizes the direct engagement and revenue benefits of official data in this landscape.”

Genius Sports Has Been Very Busy

Genius Sports has been very busy in the past months. Last November, it announced that its standing relationship with the NBA will stay in place. At the start of the year, Genius also expanded its partnership with Grupo Caliente. The company also purchased Sportscast, giving it access to the latter’s Scorebot data system. In an announcement last week, Genius also announced a deal with Australia’s National Basketball League.

With the recent approval of its online gaming licenses in Michigan and Virginia, Genius Sports now operates in 11 different U.S. states. Genius Sports also has partnerships with North American sports bodies such as the NCAA, PGA Tour, as well as the global basketball organization FIBA.

WynnBET Expansion in 2021

Meanwhile, WynnBET is determined to undergo a rapid expansion in 2021. The Wynn Resorts-owned gambling firm currently operates in Colorado, Michigan, and New Jersey. Last month, it received a conditional approval for an online gaming license in Tennessee.

New Jersey based Wynn BET also announced that it has secured market access and has submitted an application in Indiana. It also gotten market access in Iowa and Ohio and have submitted an application for licensing in Virginia. Launched in 2020, WynnBET is the authorized gaming operator of NASCAR since 2020.

WynnBET Forges Partnership with the NBA’s Memphis Grizzlies

Sportsbook
Wynn Resorts’ WynnBET casino and sports betting app has entered into a sports betting partnership with the NBA’s Memphis Grizzlies.

WynnBET’s partnership with the Grizzlies comes after the betting company recently became the Authorized Gaming Operator for NASCAR and the official sportsbook of the Martinsville Speedway and Richmond Speedway, pending approval in Virginia.

Innovative Digital-First Approach

The partnership will focus on an innovative digital-first approach and is expected to push the limits of traditional sports marketing partnerships by creating and promoting high-impact experiences that reflect the energy of both brands.

WynnBET will be integrated across the different digital and broadcast programs of the Grizzlies and Grind City Media. An on-demand media platform plus a digital content studio will also be established by the partners. WynnBET and the Grizzlies will also work together on cross-promotional campaigns that will leverage the Grizzlies’ digital footprint, including web and mobile applications and social media. A WynnBET branded lounge will be established in the Grizzlies’ FedEx Forum.

Strengthening its Industry Position

The partnership with the Grizzlies is seen as a move that will help strengthen WynnBET’s industry position. Currently, WynnBET is live in three states and has pending launches in several other jurisdictions. With its acquisition of BetBull last year, WynnBET is poised to continue seeking lucrative sports betting partnerships in key jurisdictions to increase its player base.

WynnBET is now available in New Jersey, Colorado, and Michigan. It currently has a pending application in Virginia. WynnBET also has market access opportunities in Indiana, Iowa, Massachusetts, Nevada, Ohio, and Tennessee. The application and market access are still subject to the necessary approvals by the regulatory authorities in the respective states.

WynnBET Partners With Elite Casino Resorts For Sports Betting Market Access to Iowa

Wynn Resorts Las Vegas
Last Friday, WynnBET secured approval for the launch of the company’s betting app in Iowa, making it the latest state ready to host Wynn Resorts’ online gaming platform. The access was made possible via a partnership with Iowa-based Elite Casino Resorts.

Elite Casino Resorts owns and operates three premier destination casino resorts in the Hawkeye State including the Riverside Casino and Golf Resort which is located just outside of Iowa City.

WynnBET is operated by Wynn Interactive, a joint venture of casino operator Wynn Resorts and U.K. based BetBull. 71% of the partnership is owned by Wynn Resorts, which operates casinos in Las Vegas, Boston, and Macau. According to its third-quarter earnings conference call, Wynn Resorts has already invested $80M in Wynn Interactive.

Access to Seven States

WynnBET offers casino and sports betting apps which are designed to deliver the same quality of service and guest experience that Wynn Resorts is known for. With its entry in the Iowa market, WynnBETnow has market access to a total of seven states.

It is currently operational available in New Jersey and Colorado, and will soon open its doors to online players in Michigan. WynnBET has also secured access to the markets in Indiana, Nevada, and Massachusetts before recently adding Iowa to its list of markets. It has also submitted applications for online gambling licenses in Tennessee and Virginia.

Fast-Tracking Discussions

Aside from these markets, the gambling company is fast-tracking discussions in several dozen other larger jurisdictions which have yet to be announced. The current and prospective market access would enable WynnBET to reach an estimated two-thirds of the total online gambling community in the United States.

Sports Betting is currently legal in a total of 19 states plus Washington D.C. with another six more states expected to launch this year. Additional states have expressed their interest in the legalization of sports betting during their upcoming legislative sessions.