Wynn invests $ 80 million in sports betting joint venture amid declining casino profits

By Ucatchers

Casino operator Wynn Resorts is betting big on the fast-growing American sports betting market with an $ 80 million investment in a previously formed and now reorganized joint venture with European online betting company BetBull.

Wynn and BetBull originally partnered in 2018 to jointly pursue sports betting opportunities in the US At the time, the leading Las Vegas casino operator owned 22.5% of BetBull.

Wynn now owns 71% of the recently reorganized joint venture and former BetBull shareholders own a 29% stake. The new joint venture combines BetBull’s sports betting operations in the US with Wynn’s betting and social gaming business.

The reorganized business will operate under the name Wynn Interactive. Now offering digital gambling services in Nevada and New Jersey through the app WynnBET and plans to enter Colorado, Indiana and Michigan soon. In addition, it has agreements that allow it to launch its digital betting platform in six more states.

WynnBET has recently submitted a formal application for a sports betting license in Virginia and is also considering expansion in Tennessee, which became the latest state to launch legal sports betting on November 1 when BetMGM, DraftKings, FanDuel and local operator Action 247 launched their products on the newly opened market.

A unique product

Commenting on its partnership with BetBull, Wynn CEO Matt Maddox said last week during a conference call that the European sports betting operator developed a “More social version of online games that is unique in the industry” and that their product “gets you to chat rooms fast.”

Wynn’s joint venture with BetBull currently employs 150 people, but its workforce will likely grow as the company expands its presence in the US.

Wynn said its group-wide sales for the third quarter of the year were below analyst estimates and attributed its even poorer-than-expected performance to the weakness in the Macau market, where it operates three properties – Wynn Macau, Encore at Wynn Macau and Wynn Palace.

The casino giant’s revenue and profits in Las Vegas declined significantly from what it reported for the same quarter of 2019, but still beat expectations due to the recovery in demand over the weekends.

Encore Boston Harbor, the company’s integrated luxury community in the Greater Boston area, was its best performing property for the three months ending September 30. The property closed his hotel last Friday amid a new round of immediate restrictions on nonessential businesses in Massachusetts as the state struggles to control a spike in Covid-19 cases.

Encore’s hotel service will be closed until at least December 15. Their casino is now open to customers from 9 am to 9 pm on Saturday and Sunday and from noon to 9 pm Monday through Friday.

Related news

Leave a Comment