The pandemic has sent Wynn Resorts land based casino revenues spiraling downwards, forcing them to switch to iGaming and sports betting in an attempt to stay afloat. Wynn Resorts which has operations in Macau and Las Vegas has lost a combined $758 million in the third quarter.
Wynn Resorts has now placed an emphasis on sports betting and online gaming in a bid to make up for lost revenue from the land based casino industry. Through Wynn Interactive, which is the iGaming and sports betting division, the company has entered into a deal with NASCAR that has resulted in a new brand WynnBET being created as an Authorized Gaming Operator.
This is a very big move considering that Wynn Interactive was created only two years ago after the main company partnered with BetBull Ltd from the UK. Wynn Resorts is injecting $80 million into this new venture to aid in the reorganization and expansion of its new operations. Part of the money will go towards the acquisition of permits in Virginia and Tennessee to add to its existing operations in Nevada and New Jersey.
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Wynn Interactive is also targeting another nine states, including Massachusetts and Florida, where online betting is yet to be legalized. Wynn is waiting to launch in the state of Illinois where sports betting regulation is currently being fine-tuned.
Wynn CEO Matt Maddox said the merger between Wynn Interactive and BetBull was going to be mutually beneficial in the long term. Maddox further added that revenues of all the single businesses brought under Wynn Interactive brand brought in $21 million in 2019 but he expected a much higher number in 2020.
Land Based Casinos Will Recover
On the issue of their underperforming land-based casinos, Maddox added that despite the pandemic, their operations in Macau had seen a significant rise of visitor numbers up to 30% from 10% before the pandemic struck.
He was also upbeat about the prospects of their Vegas operations, saying that the company’s third-quarter performance was better than the market average thanks to a new surge of local clients who had in the past been lifelong patrons at a number of Wynn’s competitors.
Maddox further added that October had been Wynn’s best month for a while but cautioned that the same would not be repeated for the next two months because of the impending holiday downturn.