WynnBET to Close Arizona Online Sports Betting Business
On Friday, WynnBET revealed that it would be the third online sports betting operator in Arizona to discontinue its operations.
In a press release on Friday, Wynn Resorts CFO Julie Cameron-Doe announced the closure of the WynnBET platform in all states except for two, citing increasing advertising expenses and other financial factors.
In the press release, Cameron-Doe emphasized the importance of allocating capital in more effective ways instead of solely focusing on a significant marketing budget for user acquisition and promotions in online sports betting, suggesting that Wynn Resorts shareholders could benefit from this approach.
According to the statement, WynnBET plans to continue operating as usual in Nevada and Massachusetts, while considering the potential closure of operations in Michigan and New York.
After the introduction of Arizona betting apps in September 2021 featuring 18 operators, WynnBET has now joined TwinSpires Sportsbook and Fubo Sportsbook in being temporarily unavailable.
Yengols.com inquired with WynnBET regarding their intentions in Arizona and how the closure would impact their partner, the San Carlos Apache Tribe. A representative from the company reassured that they will work closely with regulators and partners to facilitate a seamless closure transition.
The company opted not to offer any further remarks.
A representative from the Arizona Department of Gaming told yengols.com that they are aware of WynnBET’s closure announcement, but chose not to give any further comments.
Multiple members of the San Carlos Apache Tribe declined to provide comments in response to requests.
There are three available betting licenses in Arizona.
If WynnBET Arizona closes, it could open up a fourth online sports betting license in the state. The Arizona Department of Gaming is currently taking applications for one tribal license and two professional sports team licenses, with a deadline of August 15th.
Even after TwinSpires ceased operations in Arizona in July 2022, the Tonto Apache Tribe maintained its online and retail sportsbooks with the support of backend technology from Churchill Downs, the parent company of TwinSpires.
On the other hand, Fubo Sportsbook chose to shut down all of their online sports betting services nationwide in October. As a result, the Ak-Chin Indian Community lost their partnership for online betting.
Rumors suggest that the Ak-Chin Indian Community’s previous license may be one of the three currently up for bidding by the ADG. However, both tribal representatives and the ADG have opted not to disclose any details on the matter.
The Caesars Sportsbook Arizona retail location can be found at the Ak-Chin Harrah’s Casino.
There are two online sports betting licenses still available for bidding, which are the professional sports team licenses that the ADG did not award in 2021. If the department finds two suitable candidates, the state will have reached its limit of 10 licenses.
In an email sent to WynnBET customers on Friday afternoon, the operator announced that users have a 60-day window to settle their bets and withdraw their account balances. Furthermore, all promotions will be terminated with immediate effect.
We are grateful for your loyalty as a valued customer of WynnBET. Unfortunately, we must inform you that we will be discontinuing operations in most states, including Arizona. We have enjoyed serving you and hope to continue doing so at Wynn Las Vegas, Encore at Wynn Las Vegas, and Encore Boston Harbor, as well as their sports books in the future. Thank you for your support.
Insights from Industry Experts on WynnBET’s Departure
Daniel McIntosh, a teaching associate professor at Arizona State University, stated to yengols.com that U.S. sports betting operators are currently experiencing a phase of consolidation.
McIntosh anticipates that operators like WynnBET, who lack a strong brand presence and market share, will face challenges in achieving success in the near future due to the dynamic nature of the market.
“McIntosh told yengols.com that the main goal is to retain market share through consolidation. While I haven’t looked into it in depth, I am interested in ESPN’s recent move into the market with PENN Interactive.”
The deal between PENN and [Barstool Sports] and their subsequent breakup was fascinating for multiple reasons. ESPN, a major media company, stands to gain from their collaboration with PENN Interactive in terms of distribution. With the increasing popularity of mobile and physical locations, this innovation in linear-streaming could have a significant impact.
Wynn was unable to make a mark in any of the three channels.
The latest ADG monthly revenue report shows that WynnBET placed seventh out of 17 operators in the state based on May handle. Wynn recorded a handle of $3.96 million, while the top operator, FanDuel Arizona, reported a handle of $162 million.
During the month of May, six operators in Arizona reported handle amounts below $650,000, while FanDuel and DraftKings each saw gross revenue exceeding $10 million.
Brendan Bussmann, managing partner at B Global Advisors, told yengols.com that WynnBET’s decision is unsurprising given the intense competition in the state’s betting industry.
Bussmann forecasts that states like Arizona, which have a wide range of operator options, will continue to see consolidation.
Bussmann pointed out that as Arizona looks for fresh market entrants, the industry is always changing due to the continuous turnover. This underscores the reality that sports betting thrives on slim profits in a crowded market. With many rivals competing for customers, it is difficult for anyone but the biggest spenders to stand out. In the end, success in this field is determined by economic factors.
The competitive nature of Arizona’s market is maintained by the distinctive split between tribes and sports teams, distinguishing it from other markets. As brands adapt their strategies to meet the needs of their customers, the market will continue to develop.
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Author
Peterson Christopher has spent over seven years covering sports and sports betting in Arizona for publications like ArizonaSports.com, Tucson Weekly, and Green Valley News. He now brings his expertise as the lead writer at yengols.com.
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