Wynn Resorts has announced that it will immediately be shuttering the operation of WynnBET Sportsbook in eight states. However, the sports betting platform will continue to be available in Massachusetts.
Moving forward, the company will only offer the WynnBET mobile sports betting app in Massachusetts and Nevada. The announcement was made via a press release on Friday.
WynnBET was one of the first platforms to go live when Massachusetts sports betting apps launched earlier this year.
Why WynnBET is shutting down
The decision to halt operations in several states was made based on a variety of factors.
Wynn stated that “outsized market spend through user acquisition and promotions in online sports betting” was what led to the decision to pull the plug in multiple markets.
“While we believe in the long-term prospects of iGaming, the death of iGaming legislation and the presence of numerous other investment opportunities available to us around the globe have led us to the decision to curtail our capital investment in WynnBET to focus primarily on those states where we maintain a physical presence,” said Julie Cameron-Doe, Chief Financial Officer of Wynn Resorts, via a statement.
Wynn’s Massachusetts connection
WynnBET Massachusetts will remain available for download in the Commonwealth for both iOS and Android devices.
Last December, WynnBET became the first online sportsbook to be licensed by the Massachusetts Gaming Commission. It launched in the state on March 10.
In June, WynnBET reported a total handle of $11.7 million in Massachusetts, resulting in $478,000 in sports betting revenue.
In addition to operating its sportsbook in Massachusetts, Wynn also owns Encore Boston Harbor Casino and Resort in Everett.
WynnBET closing in eight states
The states where WynnBET will be closing “immediately” are Arizona, Colorado, Indiana, Louisiana, New Jersey, Pennsylvania, Tennessee, Virginia and West Virginia.
The company announced that WynnBET Michigan and WynnBET New York will remain available for the time being, but those sportsbooks will also be evaluated for viability going forward.
The steep cost of doing business as a sports betting operator in some states could have also factored into the decision. In New York, the tax rate on revenue is 51%, and some states require millions of dollars just to apply for a license.
In Massachusetts, sports wagering operators are taxed at a rate of 15% for online revenue.