It appears that WynnBET is all but done in the US sports betting industry, as it is leaving one of just two states in which it still had a presence. On Tuesday, Caesars Entertainment announced that it has agreed to acquire WynnBET’s Michigan online gaming business. The company also inked an extension of its partnership with the Sault Ste. Marie Tribe of Chippewa Indians to make sure it continues to have access to one of the largest online gaming markets in the country.
“As we continue to grow our iGaming franchise, the assumption of WynnBET’s iGaming operations in Michigan allows us to tap into a significant market and customer base, providing a crucial step forward in growing our digital products and offering players more ways to play,” said Matt Sunderland, SVP & Chief iGaming Officer for Caesars Entertainment in Tuesday’s press release. “We are honored to work with the Sault Ste. Marie Tribe of Chippewa Indians and look forward to growing with them in Michigan.”
Though owned by one of the top casino names in Wynn Resorts, WynnBET has struggled to gain any traction in the US online sports betting market. FanDuel and DraftKings control about three-quarters of the market, leaving the rest of the competitors to pick up the scraps. WynnBet has gotten but crumbs.
In August 2023, Wynn Resorts announced that it was going to pull WynnBET out of Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia “as soon as possible.” That left the large markets of Michigan and New York, as well as Nevada and Massachusetts, two states where Wynn has retail casinos.
In late January, Wynn said it was closing WynnBET’s operations in Massachusetts. It has less than a 4% market share in the state, which is actually a lot better than the sub-1% share it had in the previously-mentioned eight states.
Then, just last week, Penn Entertainment agreed to buy WynnBET’s New York sports betting license for $25 million so it can launch ESPN BET in the state.
Now WynnBet is down to just Nevada. One would guess that it will eventually close up shop in Nevada, as well, even though the state – and Las Vegas, specifically – is the center of the gambling universe. As it struggles with customer acquisition costs, there probably isn’t any reason to keep just one online sportsbook open.
