Wynn Resorts Invests $80m in Online Gambling Venture
Increasing its presence
Wynn Resorts Ltd. is investing $80m as part of a reorganized joint venture in the United States online gambling space called Wynn Interactive. Two years ago, Wynn partnered with European online gaming operator BetBull Ltd to form this joint venture in an effort to expand in the sports betting arena.
As part of the reorganization, BetBull’s overseas online betting operations are now combining with Wynn’s social games and sports betting in the United States. Wynn Resorts owns 71% of Wynn Interactive, with BetBull holding a 29% stake.
Speaking during a recent announcement, Wynn Resorts CEO Matt Maddox spoke about the substantial progress that Wynn Interactive is making. He believes that Wynn’s “nationally-recognized brand and unique product-led strategy position” will help the online offering become a fast-growing and important aspect of the overall business in the coming years.
Expansion in the US
Wynn Interactive launched an online sportsbook and online casino in New Jersey in August. WynnBET is Wynn Interactive’s sports betting and online casino business, while Wynn Slots is the social casino business.
In the next few months, there are plans to expand into Indiana, Michigan, and Colorado. The $80m investment will go toward fueling expansion and growth for Wynn Interactive.
There are deals in place already that will allow the brand to launch sports betting across nine states. BetBull will continue to be the UK-facing brand for online sports betting and online casinos.
WynnBET also recently announced a partnership with NASCAR, which will see it be an authorized gaming operator of the racing organization, as well as the official online sportsbook for the Richmond Raceway and the Martinsville Speedway in Virginia.
Poor Wynn Resorts results
Casino companies are still trying to recover from COVID-19 pandemic shutdowns. Wynn Resorts reported a net loss of $831.5m in the third quarter of 2020, with total revenue falling by 77.5% year-on-year to $370.5m.
The worst-hit part of Wynn’s business was its operations in Macau. The Wynn Palace in Macau is normally the largest revenue source for the company and it only generated $15.7m in the most recent quarter, a year-on-year drop of 97.4%.
While casinos only shut down for 15 days in February in the region, there have been extensive travel restrictions in place for people going to and from the island. Maddox believes that the Macau results are a temporary blip, as restrictions are starting to ease in the region.
The company’s Las Vegas operations brought in a total of $186.7m, a 53.3% decrease, while its Encore Boston Harbor property was more resilient, with revenue falling by 33.6% to $116.7m. The pre-tax loss for the quarter was $424.4m, with $407.4m in provisions for income taxes contributing to the $831.5m net loss.
Despite these poor results, the Wynn chief believes that there are green shoots of recovery, particularly with its online offering.
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