{"id":198952,"date":"2022-01-23T20:46:56","date_gmt":"2022-01-24T04:46:56","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=198952"},"modified":"2022-01-24T10:40:41","modified_gmt":"2022-01-24T18:40:41","slug":"wynn-could-sell-wynn-interactive-unit-for-mere-500-million","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/wynn-could-sell-wynn-interactive-unit-for-mere-500-million\/","title":{"rendered":"Wynn Reportedly Shopping Wynn Interactive Unit at Fire Sale Price of $500M"},"content":{"rendered":"

Wynn Resorts (NASDAQ:WYNN) is reportedly looking to offload its Wynn Interactive unit at the steeply discounted price of $500 million.<\/p>\n

\"Wynn
Wynn and Encore Las Vegas. The company is reportedly considering selling its Wynn Interactive unit for just $500 million. (Image: Eater Vegas<\/em>)<\/figcaption><\/figure>\n

The rumor, which was originally reported by The New York Post <\/i>earlier today, emerges nine months after Wynn reached an agreement<\/a> with special purpose acquisition company (SPAC) Austerlitz Acquisition Corp. I (NYSE:AUS). The goal was to bring the iGaming and sports wagering business public at a valuation of $3.2 billion.<\/p>\n

The Encore operator scrapped the blank-check merger last November, citing promotional spending in the US sports betting industry.<\/p>\n

In light of elevated marketing and promotional spend in the sports betting industry, we are pivoting our user acquisition efforts to a more targeted ROI-focused strategy,\u201d<\/strong> said Wynn Interactive CEO Craig Billings in a statement issued at the time. \u201cIn so doing, we expect the capital intensity of the business to decline meaningfully beginning in the first quarter of 2022.\u201d<\/strong><\/p><\/blockquote>\n

Soon after, Morgan Stanley valued Wynn Interactive at $700 million. The integrated resort operator made clear it wanted no part of what it views as unfavorable economics<\/a> to gain market share in the ultra-competitive sports betting space.<\/p>\n

\u201cThe market is really not sustainable right now. Competitors are spending too much to get customers. The economics are just not something that we\u2019re going to participate in in the short-term,\u201d <\/strong>said soon-to-be-former CEO Matt Maddox on Wynn\u2019s third-quarter earnings conference call.<\/p>\n

New York Epitomizes Brutal Spending Climate<\/h2>\n

Mobile sports wagering launched in New York earlier this month with BetRivers, Caesars Sportsbook, DraftKings, and FanDuel — the four sportsbooks currently accepting mobile bets there — accepting a combined $603.1 million in bets in the first weekend.<\/p>\n

\n

However, owing in large part to the state’s high tax rate of 51 percent<\/a>, the quartet generated gross gaming revenues of just $48.2 million<\/a>. Combine operators using some of the heaviest promotional spending seen to date, and the highest sports betting tax in the US — one that’s more than double the national average — analysts believe something has to give.<\/p>\n<\/div>\n

It’s widely believed the \u201csomething\u201d is the marketing spending because, at current levels, profitability — already elusive for some operators<\/a> in other states — is nearly impossible in New York.<\/p>\n

Wynn Interactive is waiting on final approve from the New York Gaming Commission to launch its mobile app. It’s not clear if a potential sale or the significant promotional spending by rivals will deter Wynn from debuting in the fourth-largest state.<\/p>\n

Potential Suitors for Wynn Interactive<\/h2>\n

Wynn didn’t comment on the speculation in the Post <\/i>article. But the publication mentions Fanatics and Penn National Gaming (NASDAQ:PENN) as potential suitors for Wynn Interactive.<\/p>\n

Privately held Fanatics has been linked to several acquisition rumors<\/a>, but hasn’t pulled the trigger on a deal as of yet. Penn could be a credible player for Wynn Interactive as well. But it remains to be seen how that business would be integrated with Barstool Sportsbook.<\/p>\n

Neither company has a New York license, so a purchase of Wynn Interactive could be compelling in that regard.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Wynn Resorts (NASDAQ:WYNN) is reportedly looking to offload its Wynn Interactive unit at the steeply discounted price of $500 million. The rumor, which was originally reported by The New York Post earlier today, emerges nine months after Wynn reached an agreement with special purpose acquisition company (SPAC) Austerlitz Acquisition Corp. I (NYSE:AUS). The goal was […]<\/p>\n","protected":false},"author":46,"featured_media":198953,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1],"tags":[],"acf":[],"yoast_head":"\nWynn Could Sell Wynn Interactive Unit For Mere $500 Million<\/title>\n<meta name=\"description\" content=\"Wynn Resorts might be looking to sell its Wynn Interactive arm for just $500 million.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/wynn-could-sell-wynn-interactive-unit-for-mere-500-million\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wynn Could Sell Wynn Interactive Unit For Mere $500 Million\" \/>\n<meta property=\"og:description\" content=\"Wynn Resorts might be looking to sell its Wynn Interactive arm for just $500 million.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/wynn-could-sell-wynn-interactive-unit-for-mere-500-million\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-24T04:46:56+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-24T18:40:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/wynn-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1400\" \/>\n\t<meta property=\"og:image:height\" content=\"1050\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/wynn-could-sell-wynn-interactive-unit-for-mere-500-million\/\",\"url\":\"https:\/\/www.casino.org\/news\/wynn-could-sell-wynn-interactive-unit-for-mere-500-million\/\",\"name\":\"Wynn Could Sell Wynn Interactive Unit For Mere $500 Million\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/wynn-could-sell-wynn-interactive-unit-for-mere-500-million\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/wynn-could-sell-wynn-interactive-unit-for-mere-500-million\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/wynn-1.jpg\",\"datePublished\":\"2022-01-24T04:46:56+00:00\",\"dateModified\":\"2022-01-24T18:40:41+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Wynn Resorts might be looking to sell its Wynn Interactive arm for just $500 million.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/wynn-could-sell-wynn-interactive-unit-for-mere-500-million\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/wynn-could-sell-wynn-interactive-unit-for-mere-500-million\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/wynn-could-sell-wynn-interactive-unit-for-mere-500-million\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/wynn-1.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/wynn-1.jpg\",\"width\":1400,\"height\":1050,\"caption\":\"Wynn and Encore Las Vegas. 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