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Translation: Wynn won’t adhere to the template laid out by some competitors, which consists of lavish promotions and high marketing spending to attract customers, because there’s little evidence to suggest that approach leads to profitability. In this environment, that’s likely a prudent approach, and it doesn’t mean the integrated resort operator is looking to jettison its digital gaming arm.<\/p>\n<\/div>\n
\u201cWhile Wynn\u2019s near-term de-emphasis on WynnBet investment might cause us to lower our near-term revenue forecast for the business, we still see the division representing a low-double-digit percentage of its total revenue by the middle part of this decade (around $1 billion in total sales),\u201d notes Wasiolek.<\/p>\n
The analyst adds domestic iGaming and sports wagering remains \u201ca multi-billion revenue opportunity\u201d that could generate double-digit earnings before interest, taxes, depreciation and amortization (EBITDA) margins for operators by the middle of this decade, assuming current levels of exorbitant marketing spending normalize.<\/p>\n
Other Signs Wynn Interactive May Not Be for Sale<\/h2>\n If Wynn Interactive is for sale, the parent company isn’t acting like it. For example, Wynn issued a statement earlier today, saying it’s starting pre-registration for the WynnBET app in Louisiana in anticipation of mobile sports betting launching there in the coming days.<\/p>\n
Additionally, Wynn Interactive is waiting on final approval<\/a> from the New York Gaming Commission to launch in that state.<\/p>\nEarly data suggest New York is well on its way to becoming the US leader in mobile sports betting, indicating Wynn may not want to be hasty in abandoning its digital gaming unit before testing the waters in that state.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"The sports betting equities landscape was rattled yesterday. That’s after reports surfaced on Sunday that Wynn Resorts (NASDAQ:WYNN) is contemplating selling its Wynn Interactive unit at the deeply discounted price of $500 million. At least one analyst doesn’t see that happening. The New York Post originally reported the speculation. But the gaming operator hasn’t publicly […]<\/p>\n","protected":false},"author":46,"featured_media":199163,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1],"tags":[],"acf":[],"yoast_head":"\n
Wynn Resorts Probably Won't Sell Wynn Interactive, Says Analyst<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n