Wynn Resorts Decides to Sell WynnBET
According to new reports, the parent company Wynn Resorts has decided to put up the largest wing of online casinos and sportsbooks for sale. We can hear that the company has decided to sell the entire interactive subsidiary – Wynn Interactive. They are yet to finalize the buyer of WynnBET along with BetBull and WynnSlots – all part of the interactive division.
The enthralling news surfaced right after some days when the CEO of the leading online casino market, BetMGM, mentioned promotional spending. He said that in the online gambling space, promotional spending required rationality. So, the competitive market environment might be the greatest reason WynnResorts is disbanding its betting subsidiary of sports and iGaming.
However, the exact reason for this surprising sale is yet to be deciphered and uncovered. When inquired, the representative of the parent company had not much to say about the revelations. Nevertheless, according to several whispers and meaningful reports, we heard that Wynn Resorts was silently selling their interactive wing at a “fire sale” price of $500 million.
Enormous Drop-in Selling Value
According to the announcements of May in the previous year, Wynn Interactive mentioned that it would be going public at an expected price of $3.2 billion. And it also decided that during the same process, the selling price would rise more than $640 million as per the existing operating capital.
But the company couldn’t keep to its words, thereby canceling its deal with Austerlitz Acquisition Corporation.
The online casino market leader BetMGM mentioned that all the online casino and sports betting operations that want to go public in 2022 could do so at the value of $450 million. On the other hand, Wynn Resorts has set the sale price at $500 million – which is $50 million more.
Currently, WynnBET is way behind equivalent competitors like DraftKings, BetMGM and, Fan Duel in the market of US online casinos and sports betting. Also, the shareholders of Wynn Resorts had a negative impact when the news of stock dip poured in.
Thoughts of Wynn Resorts Regarding the Sale of Wynn Interactive
The executive director of public relations for Wynn Las Vegas and Encore gave out a statement regarding the same:
“There’s nothing that we want to say about specific market rumors or speculation about Wynn Interactive. We have a crystal idea of our last earnings and the competitive nature of the online sports betting market. We also desire to operate the business in a way that will actually create long-term shareholder value.”
Probability of WynnBET’s Auction Block
It is probably because of the expensive industry customer acquisition costs that WynnBET has not put up for auction. However, in other news, the CEO of BetMGM states that the company is trying to balance the marketing and promotional expenditures.
Even before the IPO announcement in May 2021, the interactive wing of the company experienced a multiplication of revenues. But also to remember, the company was not inducing promotion and marketing for inflation.
WynnBET Offers Their Buyers
WynnBET has spread its wings across as many as seven states. Even though the main selling point is the online sports and betting market, they have launched books – DraftKings, FanDuel, BetRivers and Caesars, and an e-commerce sports apparel company called Fanatics.
WynnBET also appoints online casino wagers in the Garden and Wolverine states.